John Kinnucan, a principal at Broadband Research LLC, who was asked to wear a wire to SAC Capital, is live on CNBC right now.He seems like a really nice, cool guy, if that means anything, whose involvement in the insider trading scandal has unfairly destroyed his business.
He told CNBC:
“My business has been destroyed. It reminds me of Arther Anderson, if you’re been indicted, you’re out of business.”
Kinnucan’s appearance on CNBC will probably help that unfortunate situation, if anything, because he seems to be a trustworthy guy who’s telling the truth. And, of course, he didn’t agree to help the Feds ensnare any of his clients in their investigation.
Ultimately, as we know, they asked him to rat out one of his clients (who he’s not allowed to disclose, he’s told, because it’d be an “obstruction of justice”), and he said, no thank you.
But here’s what happened first, when the Feds raided his house about a month ago, as he told the story to CNBC a moment ago.
In his words (edited by us):
The Feds pulled up in front of my house at 4 pm when I was having a glass of wine at 4 pm (you may think that’s a bit early, but I get up at 3 am, so I figure after 12 hours, I’m allowed).
I see a couple of suits jumped out of a van. They were in NY suits, not Portland suits – and they identified themselves, and I invited them into the kitchen to discuss it.
Then they immediately started rattling off my research and suggesting it was improper. It shocked me because they rattled off some of my material that is published publicly. Then they said there was a large insider trading ring that they were investigating, and they wanted my help in incriminating someone that was a part of it.
(I was warned not to disclose who’s in the investigation or I’d be an obstruction of justice.)
Then my kids were coming home and I said, look guys, I need to wrap this up.
And then they told me, here’s our card, we need to hear from you within 48 hours or there’s going to be trouble.
Well, looks like he’s on the Feds’ bad side!
The video, from CNBC:
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