Judge Nathanael Cousins agreed to impose a $1 million unsecured bond for Brockman's release and limit his travel to particular federal districts where he lives, where his attorneys are located and where the company he leads is based, according to the transcript.
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.
Brockman, who continues to be Reynolds' chairman and CEO, also was required to surrender his passport, according to the hearing transcript.
A final determination on conditions of Brockman's release is expected to be made at a hearing scheduled for Nov. 12.
Brockman last month was indicted on what the federal government called the "largest-ever tax charge against an individual in the United States." Prosecutors allege Brockman created an elaborate offshore scheme over two decades to evade taxes on $2 billion in income from private equity investments, including using business representatives to move money. He also faces charges of evidence tampering and destruction of evidence.
The government's 39-count case also alleges that Brockman fraudulently obtained close to $68 million of Reynolds and Reynolds debt securities from 2008 to 2010 through entities he controlled without providing required notice and disclosure. Prosecutors included two forfeiture allegations with the indictment related to the wire fraud and money laundering proceeds. If convicted on those counts, he could be required to forfeit any property obtained from the alleged offenses.
Brockman appeared by video from Houston during the Oct. 15 hearing, according to the transcript. He spoke little during the 42-minute proceeding.
His attorneys entered a not guilty plea on all counts and denied the forfeiture allegations in the government's indictment.
"We deny and refute all the allegations and are looking forward to litigating this," Neal Stephens, an attorney for Brockman, said during the hearing, according to the transcript.
Stephens told the court no cash bail was necessary given Brockman's medical conditions and history of corporate and community service.
"On risk of flight, Mr. Brockman has known about this investigation for four years," Stephens said, according to the transcript. "He's here today, you know, voluntarily after accepting a summons from the government. He is not a flight risk. He's certainly not a danger to the community."
Yet Brockman has "virtually unlimited financial resources" and faces serious charges that warrant a significant bond to ensure his attendance at future court dates, Assistant U.S. Attorney Michael Pitman said during the hearing, according to the transcript.
Records show that "in the last few years, he's been drawing a salary from the company that he runs of at least $1 million a month," Pitman said, and Brockman also has access to a Bombardier Global Express 6000 jet maintained in Houston, where he lives, according to the transcript.
"If the defendant were to suffer convictions on even a few of the counts alleged in this indictment, he could face a severe incarcerative penalty, which is obviously a concern for any defendant, but especially one who's 79 years old," Pitman said.
It's unclear whether Reynolds and Reynolds leadership and board members knew about Brockman's medical conditions or the ongoing criminal investigation before the government's indictment was unsealed last month.
The company, which hasn't disclosed its ownership structure or Brockman's stake, declined to comment for this story.
Reynolds and Reynolds is not accused of wrongdoing in the government's case. A spokesman previously told Automotive News that the allegations relate to activities outside of Brockman's professional roles with the company and "we are confident in the integrity and strength of our business."
