U.S. Magistrate Judge James Gates denied the government's request to set a bond for the suspects, including a proposed $250,000 bond for former Blackwater President Gary Jackson. Gates did order all five defendants to turn over their passports and refrain from possessing guns.
At the hearing, prosecutors accused Jackson of flouting federal regulations with "arrogance." An attorney for Jackson said government officials previously knew of many of the activities discussed in the indictment, which was handed up last week.
The charges against Jackson include a conspiracy to violate firearms laws, false statements, possession of a machine gun and possession of an unregistered firearm. Also indicted were former Blackwater general counsel Andrew Howell, 44; former executive vice president Bill Mathews, 44; former procurement vice president Ana Bundy, 45; and former weapons manager Ronald Slezak, 65.
The case stems in part from a raid conducted by federal agents at the company's headquarters in Moyock in 2008 that seized 22 weapons, including 17 AK-47s.
Each of the defendants was charged as part of a conspiracy to violate firearms laws. Mathews also was charged with possession of a machine gun and possession of an unregistered weapon. Howell was charged with two counts of obstruction of justice. Slezak was charged with false statements. Bundy was charged with obstruction of justice.
The maximum penalty for each charge ranges from five to 10 years in prison and a fine of up to $250,000.
Jackson, 52, left the company now known as Xe Services in a management shake-up last year. Around that same time, Blackwater adopted the new name.
Blackwater has been trying to rehabilitate its image since a 2007 shooting in Baghdad that killed 17 people, outraged the Iraqi government and led to federal charges against several Blackwater guards. The accusations later were thrown out of court after a judge found prosecutors mishandled evidence.