Federal prosecutors are making an unusual request in an insider trading case. They said though the allegations involve "nonviolent, white-collar offenses," one of the two suspects in the case should be held without bail because of "ominous tirades" he's reportedly left in voicemail messages.
The president of Broadband Research LLC is charged with securities fraud and conspiracy.
If the government's motion is granted, he'll be kept in custody through his trial.
Prosecutors claim the defendant bribed insiders at public companies for information which he then sold to hedge fund managers and others as legally obtained, legitimate research.
Here in New York, a former employee of a California technology company has pleaded guilty in the case and agreed to testify against the Broadband executive.
Prosecutors claim the Broadband president has been leaving threatening and obscene voicemails laced with racial and ethnic epithets for a half-dozen assistant U.S. attorneys.
Prosecutors want to transfer the defendant to New York to stand trial in the case.
It's here that a former SanDisk Corp. employee pleaded guilty to conspiracy, agreeing to cooperate with authorities.
Officials say the former employee fed the Broadband executive inside information about the high-tech firm.
They say he reaped financial rewards and high-priced meals in return for the illicit information.
A spokesperson for the FBI said inside information is much more useful to investors than legitimate research. "The only problem is that it isn't legal," she said.
The Securities and Exchange Commission is also after the man, demanding that he return any money he received when selling the alleged insider information. The SEC is also asking that he be assessed civil financial penalties.
Source: USA Today: "Investment research exec charged with securities fraud," Feb. 18, 2012