06/02/2005 11:00PM

Tanaka's movements restricted

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Gary Tanaka, the prominent racehorse owner arrested last week for allegedly stealing investors' money and using it to purchase horses, was expected to be released by Friday evening on a $10 million personal recognizance bond, the Wall Street Journal reported.

Tanaka attended a bail hearing in Manhattan on Friday morning where he was ordered to wear an electronic bracelet, give up his passport, and remain confined to his son's residence in New York except to attend doctor's appointments. Tanaka is undergoing treatment for mouth cancer.

Tanaka is co-founder of Amerindo Investment Advisors with Alberto Vilar, who was also arrested last week and charged with using $5 million of a client's funds to cover personal expenses. That client has been identified as Lily Cates Naify, wife of the late Marshall Naify, another prominent horse owner.