Photo: CNBC video
They arrested John Kinnucan, Bloomberg reports. Kinnucan was the analyst that taunted the FBI as they investigated him. He was at his home in Portland, Oregon.Back in October of 2010, Kinnucan, a tech analyst for Broadband Research, was approached by the FBi AND asked to secretly tape his hedge fund clients for the FBI’s famous “Perfect Hedge” investigation. In an interview shortly after the incident, he told CNBC that he refused to cooperate with authorities.
Unfortunately for Kinnucan, the Feds had already tapped his phone and captured his conversations with Donald Longueuil, a former SAC portfolio manager, and Level Global Investors LP co-founder Anthony Chiasson.
Basically, Kinnucan was just waiting for the FBI to get him (he said that in his CNBC interview). He always maintained his innocence, telling reporters that he provided a service that was completely legal and “has nothing to do with ‘inside information’ and everything to do with a lot of hard work and insight.”
His message for FBI agents was less demure.
In an e-mail to his clients (from CNBC) he spoke sarcastically about declining the FBI’s request that he cooperate with their investigation:
“Today two fresh faced eager beavers from the FBI showed up unannounced (obviously) on my doorstep thoroughly convinced that my clients have been trading on copious inside information. (They obviously have been recording my cell phone conversations for quite some time, with what motivation I have no idea.) We obviously beg to differ, so have therefore declined the young gentleman’s gracious offer to wear a wire and therefore ensnare you in their devious web.”
And according to the the Wall Street Journal, he was known to call the FBI and give them a piece of his mind too. The FBI says the calls were threatening, Kinnucan says they definitely weren’t:
In an email message last month, he said he made the calls to the FBI agents to force public exposure of their “criminal activities” and “Constitutional violations.” He said in a follow-up email that the calls were threatening only “to the poor FBI agent’s ego.”
You can watch his November 2010 interview with CNBC below: