(Reuters) - Research analyst John Kinnucan, who was charged last week in an insider-trading probe, must remain in prison, a Manhattan federal judge ordered, just hours after a judge in Oregon ordered his release.
Kinnucan of Portland, Oregon, was arrested last week and his indictment was made public on Tuesday by federal prosecutors in New York. He was indicted on two counts of securities fraud and two conspiracy counts.
Prosecutors say he paid company insiders with cash and trips in exchange for giving him secret information, such as sales trends.
Kinnucan had been in federal custody in Oregon since his arrest on February 16.
In a court order late on Wednesday, U.S. District Judge Deborah Batts stayed a decision by U.S. Magistrate Judge Janice Stewart in Portland allowing Kinnucan to be released.
The stay will be in effect “until such time as this court has an opportunity to review” the magistrate judge’s bail determination, Batts wrote.
The magistrate judge in Portland allowed Kinnucan to be released without posting bond and ordered he be under home detention, according to a spokeswoman for the U.S. Attorney in Manhattan.
Thomas Hester, a public defender in Portland assigned to represent Kinnucan, didn’t immediately return a call seeking comment.
Prosecutors allege that Kinnucan passed on secret company information to hedge fund traders in California and New York and in exchange received hundreds of thousands of dollars.
The criminal case against Kinnucan is U.S. v. Kinnucan, U.S. District Court, Southern District of New York, No. 12-cr-00163.
Reporting By Carlyn Kolker; Editing by Muralikumar Anantharaman