Just over a week ago, John Kinnucan, founder of Broadband Research, heard a knock at this door. It was, according to Kinnucan and later substantiated by Fox Business, 2 FBI agents. They reportedly asked him to wear a wire to nab at least one of his fund clients who payKinnucan for top-notch research. He refused.
What happened next has changed the course of his life, and so far, NOT for the better. Kinnucan emailed his clients to explain what happened and, guess what: they all dumped him.
Kinnucan joined Charlie Gasparino and me on "Countdown to the Closing Bell" this afternoon in a Fox Business Exclusive. Below is his compelling story. Insider trading rules are nebulous. Therefore we pressed him on whether what HE thinks is insider trading is what some of his researchers think is insider trading. Can he really be sure none of his employees was doing anything illegal?
Attorney General Eric Holder said in a news conference today that the widespread investigation is ongoing but very serious. We're waiting to see what evidence the feds have. Hedge funds and mutual funds that have been served with subpoenas have been hit by billions of dollars in redemptions---people calling up to say, "I want my money out and I want it out NOW."And Kinnucan, merely by turning down the request to wear a wire, now, according to his account below, may lose his entire business. Folks, we're following the story for you every step of the way.
Here's his part of the story.