MANHATTAN (CN) – Federal authorities arrested the president of Portland, Ore.-based Broadband Research, an investment research firm, and accused him of inside-trading conspiracy.
John Kinnucan was arrested at his home in Oregon and charged with conspiracy to commit securities fraud, conspiracy to commit wire fraud, and two counts of securities fraud.
“Kinnucan used financial incentives, fancy meals and other inducements to curry favor with public company insiders so they would serve up their employers’ secrets,” the U.S. Attorney’s Office said in a statement announcing the unsealing of the indictment. “He allegedly made a business model out of passing off those secrets to his hedge fund clients as legitimate research.”
Kinnucan is accused of conspiring to trade on inside information about F5 Networks, Sandisk and Flextronics International.
The SEC filed parallel charges.