Wednesday, January 16, 2013

Analyst goes to the Slammer in insider case

A securities research analyst who had publicly refused to cooperate in the U.S. government's sweeping insider-trading probe was sentenced to more than four years in prison on Tuesday after admitting he supplied hedge funds with illegal tips, Reuters reports. John Kinnucan, who had run Broadband Research LLC in Portland, Oregon, has been in custody since his arrest last year after failing to meet bail. He appeared gaunt and wore a full beard as he apologized briefly before he was sentenced in U.S. District Court in Manhattan.  Including credit for time already served, his prison sentence will run at least another three years, according to prosecutors.

Kinnucan, 55, gained wide attention in the financial world in late 2010 with his public refusal to wear an FBI wire to cooperate with the government's trading probe. His research firm operated in an opaque industry that provides insight for hedge funds and has become a target for investigators examining how information is traded on Wall Street.  He was arrested last February, accused of passing tips to hedge funds, including sales trends for Apple Inc.'s iPhone, as well as tips related to OmniVision Technologies Inc and SanDisk Corp…..

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