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

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

The Cult of Loss Aversion: A Call to Rethink Risk in Global Macro Investing

Sep 4 2014 | 5:45am ET

In the wake of a traumatic loss, whether it is financial or personal, it is just...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

In search of the ‘new normal’ at the Fed

The Federal Reserve keeps baby-stepping toward a “normalization” of monetary policy. But just what is normal?

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.