When John Kinnucan went public with his bitter denunciation of the FBI and its high pressure tactics to force him to cooperate in an insider trading probe, we suggested that any renown would last about 15 minutes.

Turns out, his name has cropped up again, as he has been criminally charged with insider trading. According to media reports, he was arrested at his residence last week and charged with collecting insider tips from executives at technology companies that he later made available to clients of his research firm, notably two hedge funds. Kinnucan was paid about $30,000 a quarter by the funds, which the government says traded on portions of the insider information.

The twist here is that the government alleges that Kinnucan misrepresented the information to his clients as legitimate research that was legally acquired. What’s still unclear is whether the government went after Kinnucan with extra zeal for his public criticism of the FBI. We suggested at the time that he wasn’t doing himself any favors.

The government is playing hardball, arguing before a judge that he should be detained and making public excerpts from voicemails that are filled with expletives and holocaust references. Most likely, the government would have charged him even if he were more polite. Based on his principled stand earlier, it would not be surprising if he chooses to take this to trial. In that case, the government’s case will likely feature executives of tech companies who fed him inside information, wiretapped calls and lots of other communications.

This has proved devastating in previous cases. While a trial would prove quite colorful, it remains a minor case in the scheme of the entire insider trading investigation.

For more:
- here’s an article from CNBC

Related article:
Kinnucan gets subpoena, will represent himself