John Kinnucan, Research Executive, Gets Subpoena After Refusing To Wear A Wire In Insider Trading Probe
NEW YORK (By Matthew Goldstein): John Kinnucan, the owner of an independent Portland, Oregon-based research firm that has been implicated in a major insider trading investigation, said he had received a subpoena on Friday morning to provide federal prosecutors with documents dating back to January 2008.
Kinnucan, in a telephone interview with Reuters, said the subpoena was personally served on him at his home by an FBI agent. The agent appeared at Kinnucan's home as his children were getting ready to go to school.
The owner of Broadband Research, Kinnucan said he had no plans to hire a lawyer because he did not want to bankrupt his family in the process.
"The feds have been taping my calls, they know who my clients are," he said.
He said he had asked his former clients to contribute to a legal defense fund. Kinnucan said so far he hasn't received any contributions.
Kinnucan became something of a celebrity after refusing to cooperate with the investigation and notifying all his clients and industry contacts in an email last month. Several of the hedge funds and mutual funds that did business with him have been served with subpoenas.
"My clients are not some scummy fly-by-night hedge funds," said Kinnucan, who insisted the kind of information on technology companies he provided his clients was perfectly legitimate.
Some of the current and former Kinnucan clients that have gotten subpoenas include Citadel and SAC Capital. Mutual fund companies Janus Capital Group Inc and Wellington Management also got federal subpoenas.
FBI spokesman Jim Margolin declined to comment.
Kinnucan sent his October email to more than 50 people associated with roughly 20 hedge funds and mutual funds. He said he had rebuffed the FBI's demand that he cooperate and secretly record conversations, people familiar with the situation said.
(Reporting by Matthew Goldstein and Jonathan Stempel; Editing by Lisa Von Ahn, Dave Zimmerman)
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