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Kinnucan’s Phone Threats Should Bar His Release, U.S. Says

Feb. 17 (Bloomberg) -- U.S. prosecutors urged a judge to detain John Kinnucan, who is charged with taking part in an insider-trading scheme, citing a “pattern of threats and intimidation” against witnesses and U.S. authorities.

Prosecutors in court papers quoted from profanity-filled voice-mail messages left over two months with assistant U.S. attorneys, FBI agents and a witness who is cooperating with the government’s investigation. The voice mails contain numerous ethnic and racial slurs and references to the Holocaust.

“Kinnucan has engaged in volatile and extreme conduct, using references to genocide, violence and physical harm directed to the targets of his ominous tirades,” Manhattan prosecutors said in papers filed in federal court in Portland, Oregon, where Kinnucan appeared this afternoon and was ordered held until at least Feb. 22, when his bail hearing resumes.

Kinnucan, 54, the founder of Broadband Research LLC, was arrested at his Portland home yesterday 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 a complaint unsealed in New York.

On Dec. 6, prosecutors said, Kinnucan left a voice mail for an unnamed prosecutor: “Remember me? The guy who you tried to destroy, you scummy piece of s--t.” Kinnucan added, according to prosecutors, “Ah, too bad Hitler’s not around. He’d know what to do with scum like you.”

‘Hostile Individual’

The calls “are the actions of a volatile and hostile individual” prosecutors argued.

“How the f--k can you live?” Kinnucan said to a cooperating witness in a voice mail on Feb. 11, according to the government. “Do you have a family, do you have children, do you have a wife? How can you even walk down the street, why don’t you just f--king kill yourself?”

That same day, prosecutors said, Kinnucan tried to contact another cooperating witness, sending an e-mail to the witness’s wife that asked her to have the witness call Kinnucan.

The case is U.S. v. Kinnucan, 12-mag-424, U.S. District Court, Southern District of New York (Manhattan).

To contact the reporter on this story: Bob Van Voris in New York at rvanvoris@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net;

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