Accused fraudster Brost’s bail reduced to $2,000

Accused fraudster Milowe Brost could be released from custody by early next week, after a judge reduced his bail on Friday from $1 million to $2,000 on federal income-tax charges.

Brost, 59, in the midst of a threemonth preliminary hearing on a massive Ponzi investment scheme that may have bilked investors of up to $400 million, must also wear an ankle bracelet so police can keep track of him.

He already had bail on $100,000 in non-cash assets on those charges.

“It was an unattainable amount that simply couldn’t be raised in the circumstances,” defence lawyer Shamsher Kothari said of the original bail on the income-tax charges.

Court of Queen’s Bench Justice Patrick Sullivan said the original bail of $1 million was set as a fraction of the alleged fraud.

The same conditions will remain on Brost’s release on the Ponzi charges, including him not being permitted to leave Alberta or be involved in any investment transactions.

Crown prosecutor Tyler Lord had argued Brost remain in custody because of flight concerns, thus prompting the judge to include the ankle monitoring clause.

Kothari said family members are expected to raise the cash over the weekend and post it within a few days.

Brost will be back in Court of Queen’s Bench on Nov. 9 on the income tax-related charges.

Brost and co-accused Gary Allen Sorenson’s preliminary hearing on the Ponzi fraud began in September and was scheduled until just before Christmas, but Kothari said it will wrap up some time before the end of November.

Sorenson and Brost each face two counts of fraud over $5,000 and theft over $5,000, and one count each of possession of stolen property and money laundering in that case.

Crown prosecutors Brian Holtby and Peter Mackenzie will call dozens of witnesses in the hearing before Provincial Court Judge Mike Dinkel, held to determine if there is sufficient evidence to go to trial.

Kothari said Crown disclosure was over 92,000 documents,

No evidence of the hearing can be reported because of a publication ban.

Both accused have elected to have their trials heard by judge and jury.

Sorenson, who has been out on bail since shortly after he was charged on Sept. 14, 2009, is represented by lawyer Brenda Edwards.