Marc Dreier, 58, could be released as early as Monday after the decision by U.S. District Judge Jed S. Rakoff.

Marc Dreier, 58, could be released as early as Monday after the decision by U.S. District Judge Jed S. Rakoff.Dreier was arrested in early December on charges that he cheated hedge funds out of more than $400 million over the last four years. He has pleaded not guilty.Prosecutors, citing his numerous trips overseas and their suspicions that he might have hidden money, had insisted that no conditions could ensure he would not flee.In his ruling, Rakoff released Dreier from an earlier requirement that he post $10 million in cash or property to satisfy a $20 million bail. He said the Constitution requires that "excessive bail shall not be required."
He also sang the praises of the U.S. justice system."How glorious to be an American citizen," Rakoff wrote. "In so many countries, the rights of citizens are not worth the paper they are printed on."In contrast, in the U.S., "any citizen — good, bad, indifferent, famous, infamous, or obscure — may call upon the courts to vindicate his constitutional rights and expect that call to be honored," he wrote.Rakoff, however, said Dreier must agree that armed security guards, who will be in his apartment at all times, may use "reasonable force" to prevent him from fleeing. He also told Dreier to post three months' worth of costs for the guards, or $210,000, in advance.In other conditions, all computers, cell phones and other means of electronic communication except for a land-line telephone must be removed from his apartment, along with knives or anything else that might serve as a weapon. And all visitors must be approved by the court.Yusill Scribner, a spokeswoman for federal prosecutors, said the office had no comment. Gerald Shargel, Dreier's lawyer, said he was "obviously pleased with the result."He said a lawyer from his firm was personally delivering word of the ruling to Dreier at the Metropolitan Correctional Center.All of Dreier's assets have been frozen. At a bail hearing earlier this week, a court-appointed receiver overseeing the dismantling of Dreier's law firm said he did not believe Dreier had any large amounts of money hidden anywhere.Before he was arrested, Dreier spent a decade building a law firm that had more than 250 attorneys and some big name clients including retired football star Michael Strahan and former News Corp. publishing executive Judith Regan.He could face from 30 years to life in prison if he is convicted of conspiracy to commit securities fraud and wire fraud.