Dreier Released on $20 Million Bail, Agrees to House Arrest

Dreier Released on $20 Million Bail, Agrees to House Arrest
The New York Law Journal - February 05, 2009

A federal judge this morning issued a bail decision paving the way for attorney Marc S. Dreier's release from jail while he awaits resolution of the $400 million fraud case against him.  Southern District Judge Jed Rakoff removed a requirement that Mr. Dreier post a $20 million bond, with $10 million secured by at least four responsible parties.  Gerald Shargel, Mr. Dreier's attorney, has said that condition, which was imposed by Magistrate Judge Douglas Eaton before Mr. Dreier's indictment, "effectively" denied bail for his client.

Instead, Judge Rakoff will allow a $10 million personal recognizance bond, that, while not secured by cash, will be co-signed by Mr. Dreier's 19-year-old son, Spencer Dreier, and his 85-year-old mother, Mildred Dreier. Judge Rakoff also ordered 24-hour, seven-day a week home detention for Mr. Dreier, secured by electronic monitoring and armed guards who could use "'reasonable force' to thwart any attempt to flee."  The $210,000 three-month cost of the armed guards will be paid by Mr. Dreier’s relatives, the judge and Mr. Shargel have said. The money will be placed into an escrow account at the U.S. Attorney’s Office.  Mr. Dreier also must remove all cell phones and computers from his home, surrender all travel documents and submit to screening and search of pre-approved visitors.  With these conditions in place, the possibility of Mr. Dreier's flight would be "substantially reduced," the judge said.  Judge Rakoff said he would issue a formal order on Monday, Feb. 9, which would be the earliest Mr. Dreier could be released from the Metropolitan Correctional Center. He has been in jail since his arrest in New York on Dec. 7.