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by Mike Caswell

As recidivist Vancouver-linked fraudster Ed Durante sits in a New York jail awaiting trial on new fraud charges, a judge has let his co-defendants go free. Among them are financial advisers Sheik Khan and Larry Werbel, who accepted bribes from Mr. Durante, according to prosecutors. The judge has granted the release of both on conditions that include a $500,000 bond. (All figures are in U.S. dollars.)

The charges against the group stem from the manipulation of a pink sheets shell called VGTel Inc. The government claims that Mr. Durante, who adopted the alias Ted Wise after a prior fraud conviction, told potential investors VGTel could go to $50. With the help of Ms. Khan, Mr. Werbel and others he convinced a group of mostly unsophisticated investors to buy millions of dollars worth of shares, prosecutors say.

Mr. Durante has been in a New York jail since Dec. 18, 2015, when the government had him extradited from Germany to face the charges. He has not applied for release. His co-defendants, meanwhile, were arrested earlier this month. Their arrests came as prosecutors filed a superseding indictment that expanded the case.

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