Hedge Fund Tipster Kinnucan Fined $6.33 Million

Mar 27 2014 | 11:57am ET

Adding insult to injury, a jailed expert networker has been hit with a $6.33 million bill from the Securities and Exchange Commission.

John Kinnucan, the once-defiant technology analyst who pleaded guilty in 2012 to passing confidential tips to hedge funds, was ordered to pay $1.58 million in ill-gotten gains and another $4.75 million in fines. The penalty imposed by U.S. District Judge Alison Nathan was the maximum; the judge noted Kinnucan’s “high degree of bad intent.”

That bad intent was most clear in the months before his arrest in 2012, when he made a series of threatening and anti-Semitic phone calls to prosecutors. He was sentenced to 51 months in prison, a term he is currently serving at a California penitentiary.

The SEC levy comes on top of $164,000 Kinnucan was ordered to forfeit as part of his criminal case.

Kinnucan made something of a name for himself in 2010, when he announced in an e-mail to his clients—among them Coatue Management, Citadel Investment Group, Maverick Capital and SAC Capital Advisors—that the Federal Bureau of Investigation had asked him to record his conversations with them. Kinnucan refused.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of