[credit provider=”Courtesy of Citadel” url=”http://www.citadelgroup.com/about/corporate-leadership.php”]
As the fallout from the government’s huge insider-trading investigation continues to spread, an analyst at the centre of it is trying to collect a bill owed him by a former client, hedge-fund giant Citadel–which may also be under investigation.The analyst, John Kinnucan, has been trying to collect $50,000 from Citadel for months. And last week, fed up with not getting his money, Kinnucan sent an email directly to Citadel boss Ken Griffin trying to “shame” him into paying the bill.
In the email, which has been viewed by Business Insider, Kinnucan reminded Griffin and Citadel what he had done for them:
“As you also know, the FBI requested that we record conversations with you, in order obviously to incriminate you. We refused…”
(Kinnucan later told us that what he meant in this email was not that the FBI had asked him to tape Citadel or Ken Griffin specifically, but that he had been asked to tape all of his clients, which included Citadel.)
Citadel, you may recall, was one of the first hedge funds to receive a subpoena in the big insider trading investigation. This is perhaps because Citadel was a client of Kinnucan’s expert network Broadband Research.
After Kinnucan told the FBI he would not wear a wire for them, he sent an email to every one on his client list warning them about the coming hedge fund raids.The identities of the specific individuals and firms that the FBI asked Kinnucan to record has been the subject of debate. The Wall Street Journal wrote months ago that Kinnucan was asked to record SAC Capital’s Michael Steinberg. But Kinnucan told us that Steinberg was not whom the FBI asked him to record.
The email Kinnucan sent Griffin confirms that one of Kinnucan’s clients was Citadel.