12:20 PM PT – Prosecutors present their arguments for the rejection Diddy bail … and they say they are concerned he would intimidate witnesses and obstruct the trial if released on bail.

In addition, authorities say the witnesses they interviewed all expressed fear … and prosecutors claim Diddy called his former artist Kalenna Harper 54 times a day before she gave a statement about a current court case in which they were named.

Prosecutors also say Diddy has enough money and resources to be considered a flight risk … and federal authorities say he appeared to have drugs in his hotel room where he was arrested.

Federal authorities say a pink powder that previously tested positive for ecstasy was found in Diddy’s hotel room … as well as other drugs.

Diddy has pleaded not guilty to all charges against him.

The controversial mogul made his first appearance in federal court in Lower Manhattan on Tuesday afternoon…where, as expected, he pleaded not guilty. The more pressing question for Diddy was whether or not the judge would release him on bail.

Diddy offered to pay an incredible $50 million as bail. He didn’t want to pay that amount in cash – instead, he offered his $48 million Miami mansion and his mother’s house as collateral … and said he was willing to carry a GPS device and limit his travels to South Florida and the New York area.

The trial is still ongoing and a judge has not yet decided on the issue of bail.

If convicted, Diddy faces a minimum sentence of 15 years and a statutory maximum of life in prison, so he has an incredible amount at stake.

Prosecutors believe Diddy poses a flight risk and do not want to release him on bail.

It will be interesting to see how the judge decides.