A judge will allow accused New York lawyer Marc Dreier to serve in a “private prison” while he awaits resolution of the $400 million fraud case against him, reports the New York Law Journal. Acknowledging that Dreier is a risk to flee, Judge Jed Rakoff concluded yesterday that a bail package proposed by his attorney “goes far to minimize this risk.” The judge set bail at $10 million and adopted a controversial proposal that armed guards move into the Dreier apartment. The guards will have the power to prevent Dreier from leaving and to use “‘reasonable force’ to thwart any attempt to flee,” the judge said.
Dreier must pay the estimated $210,000 cost of the guards. Dreier, 58, has been in custody since Dec. 7. He has been indicted on charges of conspiracy, wire and securities fraud. At a bail hearing, lawyers debated the proprety of allowing some defendants to create their own “private prisons” while less prosperous defendants languished in jail. Rakoff said the disparity “is a serious flaw in our system. But it is not a reason to deny a constitutional right to someone who, for whatever reason, can provide reasonable assurances against flight.”