Dreier Could Be Freed This Week

Feb 9 2009 | 1:09am ET

Disgraced lawyer Marc Dreier could join his fellow accused hedge fund defrauder Bernard Madoff in the world’s most upscale prison—the Upper East Side of Manhattan—this week.

A federal judge last week cut Dreier’s bail in half—to $10 million—and set some Madoff-like restrictions, should he be able to come up with the bond. In fact, some of the conditions imposed on Dreier, accused of ripping hedge funds and other investors off to the tune of more than $400 million, are even more draconian than those placed on Madoff.

U.S. District Judge Jed Rakoff said that Dreier will be barred from leaving his apartment without the court’s permission. That apartment will have to have a security guard posted in front of it, á la Madoff. But Dreier, who will also have to wear an electronic monitoring device, will not have the freedom of association enjoyed by the accused $50 billion Ponzi schemer. His apartment will have to have all communication lines removed save for a landline phone, and any visitors he wishes to entertain must be approved by authorities. What’s more, his landline can’t feature any modern amenities, with Rakoff banning call forwarding, modems, caller ID and call waiting.

Dreier’s attorney said he expects his client to be released early this week. His $10 million bond must be signed by his mother and son.

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