Tags: US | Subpoenas | Insider-Trading | Probe

US Delivers More Subpoenas in Insider-Trading Probe

Tuesday, 07 Dec 2010 04:03 PM

Federal authorities have expanded an investigation into insider trading on Wall Street, bringing to more than one dozen the number of subpoenas sent to hedge funds and other investment firms over the past two weeks, people familiar with the inquiry said.

Last week, federal prosecutors in Manhattan sent more subpoenas to several large hedge funds, said the sources, who asked not to be named because the investigation is not public.

U.S. authorities began subpoenaing big-name investors, including Wellington Management and SAC Capital Advisors, on Nov. 22, the same day Federal Bureau of Investigation agents raided hedge funds in three states.

The Department of Justice had no comment.

The initial subpoenas went to a handful of firms whose employees had worked with John Kinnucan, an independent analyst who ran Broadband Research. FBI agents approached Kinnucan to have him record conversations with clients, but the Portland, Oregon-based analyst refused and alerted his contacts to what the FBI was asking.

But now there has been another round of more than a dozen subpoenas, one of the sources said. The names of the funds that received subpoenas most recently are not known.

Kinnucan himself, who has become something of a folk hero on Wall Street for having defied the FBI, has now been served with a subpoena. The former hedge fund manager is suspected of having passed on non-public information about technology companies and now has until Dec. 13 to deliver two years worth of business documents to federal agents.

In a telephone interview Kinnucan said that he fully expects to be arrested by the FBI at some point. "That's just how they operate," he said adding "I ass

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Federal authorities have expanded an investigation into insider trading on Wall Street, bringing to more than one dozen the number of subpoenas sent to hedge funds and other investment firms over the past two weeks, people familiar with the inquiry said. Last week, federal...
US,Subpoenas,Insider-Trading,Probe
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2010-03-07
 

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