Bail conditions to continue for former Reynolds CEO Bob Brockman


Former Reynolds and Reynolds Co. CEO Bob Brockman will remain free on a $1 million unsecured bond while he fights federal charges of tax evasion and wire fraud, a judge ordered Wednesday.

Attorneys for Brockman, who last week stepped down as Reynolds’ chairman and CEO, and federal prosecutors said in a court filing Wednesday that a review of Brockman’s bail conditions ordered by the U.S. District Court for the Northern District of California did not recommend any changes from temporary conditions a judge set last month.

A bail review hearing that had been set for Thursday will be removed from the judge’s calendar, according to the court filing.

Brockman, 79, was indicted last month on 39 counts that include tax evasion, wire fraud, money laundering and evidence tampering. Federal prosecutors say Brockman created an elaborate offshore scheme over two decades to avoid taxes on $2 billion in income. His attorneys entered a not guilty plea on all counts at an initial court hearing Oct. 15.

Temporary bond conditions imposed last month by federal Judge Nathanael Cousins will continue, including the $1 million bond and limited travel to particular federal districts, according to Wednesday’s order. Brockman also was required to surrender his passport.

Aside from the Northern District of California, where the charges were filed, Brockman is restricted to specific districts in Texas, where he lives; Colorado, where he also resides; New York; Washington, D.C.; Virginia; and Ohio. Reynolds and Reynolds, the largest privately held provider of dealership management system software and services, is headquartered in Dayton, Ohio.

Attorneys for Brockman did not immediately respond to messages Wednesday seeking comment about whether Brockman will travel to Ohio now that he no longer leads Reynolds and Reynolds.

Reynolds last week named Tommy Barras, who was promoted to president and COO in June, as its new CEO. The chairman role is vacant for now, according to a Reynolds spokesman. The company has not confirmed Reynolds’ ownership structure or whether Brockman retains an ownership stake.

Separately, Brockman’s defense attorneys filed a motion this month to transfer the venue for the tax evasion charges from northern California to U.S. District Court for the Southern District of Texas, which federal prosecutors oppose. A hearing on the motion has been set for Dec. 1.

Brockman’s attorneys wrote in their change of venue motion that they anticipate they also will move to transfer the entire case to southern Texas “for several reasons, including Mr. Brockman’s serious health issues.”

Brockman, who lives in Houston, is contending with significant health issues, including Parkinson’s disease and a heart condition, along with two prior rounds of cancer, his lawyers said last month in a court hearing, according to a transcript of the proceeding.

Federal prosecutors noted this week in a court filing ahead of an expected Nov. 17 status conference that “Defendant’s counsel have indicated that they expect to request a determination … whether Defendant is mentally competent to stand trial in this matter.”

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