A federal judge on Tuesday ordered the release of James Merrill, co-owner of TelexFree Inc., from detention. Merrill awaits trial in a $1 billion fraud case. His release comes with strict conditions, including a $900,000 bond and GPS monitoring at his Ashland home.

Merrill, arrested in May, was placed in his wife Kristen Merrill's custody. He must reside at their family home in Ashland. His bail terms require him to wear a GPS device and remain indoors daily from 8 p.m. to 8 a.m. He is prohibited from leaving Massachusetts.

The $900,000 bond is secured by Merrill's house, a property belonging to his sister Julie Merrill Wisell in Sutton, and another residence in East Falmouth. Merrill was also required to surrender his passport to the authorities.

Federal Judge Timothy S. Hillman in Worcester acknowledged the case was "a close one." But he cited Merrill's "strong family and community ties" as a factor in his decision. Merrill and his wife have been married for 23 years. They have lived in Ashland since 1997 and raised three children there.

Hillman also noted Merrill's history of coaching youth sports teams in the community. The judge stated the government could not fully substantiate its claim that Merrill possessed international funds and contacts enabling him to flee the country. Because of this, Hillman found Merrill should be released, subject to the imposed conditions.

The government had pointed to Merrill's international network of supporters. However, Hillman concluded it had not offered proof of individuals, with the possible exception of Carlos Wanzeler, who would actively assist Merrill in fleeing.