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Tuesday, February 17, 2009

Marc Dreier placed under house arrest

A New York lawyer charged with running an elaborate $400 million investment fraud has been bailed and placed under house arrest at his Manhattan apartment, according to reports. 

Marc Dreier is charged with creating bogus auditing statements and using a cast of associates impersonating legitimate advisers in order to sell fake promissory notes to hedge funds in the United States and Canada. 

He had been awaiting trial in jail after a judge said he had engaged in "reckless, clever and improvising" behavior prior to his arrest that suggested he posed a flight risk. Mr Dreier had also been unable to find four people willing to guarantee his $10 million bail. 

Under the new arrangement, Reuters reports, Mr Dreier has signed a $10 million personal recognizance bond, co-signed by his mother and son. 

He will wear an electronic tag and must also pay for private armed guards and an alarm to be installed at his apartment. 

The former lawyer has pleaded not guilty to the civil and criminal charges against him. 

In December, the Securities and Exchange Commission's complaint against Mr Dreier accused him of a "stunning, brazen fraud".

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