The SEC charged the owner of consulting firm Broadband Research...
The SEC charged the owner of consulting firm Broadband Research Corp. with insider trading Friday. John Kinnucan’s Oregon-based firm allegedly claimed to offer clients legitimate research about publicly traded technology companies, but instead gave clients nonpublic information from insider sources.…
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Kinnucan allegedly befriended sources to obtain confidential information and used clients’ consulting fees to compensate his sources with meals, cash and vacations. “Obtaining important and unreported financial results from company insiders and selling that information to hedge funds is not legitimate expert networking services -- it’s old-fashioned insider trading,” said Robert Khuzami, director of the SEC Division of Enforcement.