The SEC on Friday charged John Kinnucan and his Portland, OR-based expert consulting firm, Broadband Research Corporation, with insider trading in the technology sector.  The charges stem from the SEC’s ongoing investigation of insider trading involving expert networks. In a parallel criminal case, Kinnucan was arrested 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. SEC Findings and Allegations. According to the SEC complaint filed in Manhattan, Kinnucan and Broadband claimed to be in the business of providing clients with legitimate research about publicly-traded technology companies.  Instead, they typically tipped clients with material nonpublic information that he obtained from prohibited sources inside the companies.  Clients then traded on that information. Kinnucan and Broadband were paid significant consulting fees, and he allegedly spent lavishly on his contacts. Kinnucan’s misconduct occurred from at least 2009 to 2010, a period during which he generated hundreds of thousands of dollars in annual revenues for Broadband.  Kinnucan obtained material nonpublic information from well-placed employees at a variety of publicly-traded technology companies.  The SEC’s complaint specifically alleges that in July 2010, Kinnucan obtained material nonpublic information from a source at F5 Networks Inc., a Seattle-based provider of networking technology. On the morning of 7/2/10, Kinnucan learned that F5 had generated better-than-expected financial results for the third quarter of its 2010 fiscal year, with the public announcement scheduled for 7/21.  Kinnucan had phone conversations with several clients or left messages conveying that F5’s revenues would exceed market expectations.  At least 3 clients - an analyst and 2 portfolio managers - made trades at their respective investment advisory firms on Kinnucan’s tip.  Their trades resulted in profits or avoided losses of nearly $1.6 million. The SEC has now charged 22 defendants in enforcement actions arising out of its expert networks investigation, which has uncovered widespread insider trading at several hedge funds and other investment advisory firms.  The insider trading has occurred in the securities of 12 technology companies — including Apple, Dell, Fairchild Semiconductor, Marvell Technology, and Western Digital — for illicit gains totaling nearly $110 million. Related SEC insider trading cases stemming from the Galleon investigation involved illicit gains in excess of $91 million. SEC Charges. The SEC charges Kinnucan and Broadband with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, and seeks to disgorge their ill-gotten gains plus prejudgment interest, and order financial penalties. SEC NY Staff Credits. Investigation,which continues, conducted by: Joseph Sansone, Daniel Marcus [both Market Abuse Unit (NY)] and Matthew Watkins, Neil Hendelman, Diego Brucculeri, James D’Avino [NYRO]. For further details, go to:  [SEC PR 12-30, 2/17/12]  and   [SEC Complaint]  and  [SEC Litigation Release 22261]