Kinnucan Set for Release on Thursday

By Sital PatelFOXBusiness

John Kinnucan, the famed analyst who went public after FBI agents visited his home asking him to wear a wire to trap his clients, is set to be released from jail Thursday, after being charged with passing insider tips to his hedge fund clients.

In his bail hearing in Portland, Oregon, Kinnucan read a letter of apology in reference to threatens against law enforcement officials and members of the U.S. attorneys office over the past year.

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Prosecutors for the government urged the judge to keep Kinnucan in jail, saying he had a pattern of threats and intimidation.

Court papers show Kinnucan engaging in profanity-laced language and racially-charged comments over voicemail and email to members of the legal community.

Kinnucan, founder of Broadband Research in Portland, represented himself and his firm as an expert network to clients and allegedly gave them insider tips about various tech companies, including SanDisk, Corp (NASDAQ:SNDK), F5 Networks Inc. (NASDAQ:FFIV) and OmniVision Technologies Inc. (NASDAQ:OVTI).

He was arrested last week and charged with one count of conspiracy to commit securities fraud, one count of conspiracy to commit wire fraud and two counts of securities fraud in the Southern District of New York under U.S. Attorney Preet Bharara.

The judge ordered Kinnucan to wear at GPS bracelet while under house arrest and instructed him not to contact anyone.

Kinnucan will be brought to New York at a suitable date to be arraigned, said senior law enforcement officials.