March 7 (Bloomberg) -- Broadband Research LLC founder John Kinnucan was ordered to be transported to New York to face trial for insider trading after a judge found him unable to meet the terms of his $5 million bail.
U.S. District Judge Deborah Batts in New York today said that a lawyer for Kinnucan, 54, who was indicted for insider trading and securities fraud, told her that his client was unable to satisfy the conditions of his bail. The lawyer asked that Kinnucan be moved to the federal courthouse in Manhattan by the U.S. Marshals Service, the judge said.
Kinnucan was arrested in Portland, Oregon, on Feb. 16. He is accused of passing inside tips to hedge fund clients about SanDisk Corp., OmniVision Technologies Inc. and other companies.
Batts ruled on Feb. 23 that Kinnucan could be freed on $5 million bond secured by $100,000 in cash and property and with the signatures four financially responsible people. She rejected prosecution claims that he had engaged in a “campaign” of threats against the government.
Prosecutors said at a hearing after the arrest that Kinnucan posed a danger to the community and a threat to authorities handling his case, citing at least 24 menacing voice-mail messages he left on the office phones of U.S. prosecutors and Federal Bureau of Investigation agents, and also at the homes of two cooperating witnesses.
The judge today also moved Kinnucan’s initial court appearance in New York to March 28 from March 12, saying that the marshals probably wouldn’t be able to get him to New York from Oregon until at least March 26.
She had previously agreed to push a March 5 initial hearing back to March 12 after Kinnucan’s lawyer told her his client was having difficulty meeting the terms of that bond.
The case is U.S. v. Kinnucan, 12-cv-163, U.S District Court, Southern District of New York (Manhattan).
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