U.S. & World

NEW YORK (CBS) ― The wealthy couple accused of forcing two Indonesian housekeepers to serve as slaves in their Long Island mansion can be freed on bail, a federal appeals court says.

The 2nd Circuit Court of Appeals in Manhattan said in the ruling made public Monday that appropriate bail release orders should be executed based on the government's conclusion that there were conditions that would assure that the couple did not flee.

Varsha Mahender Sabhnani, 35, and Mahender Murlidhar Sabhnani, 51, have been held without bail since they were arrested in May on federal charges of forced labor and harboring undocumented immigrants.

Varsha Sabhnani is originally from Indonesia and her husband is from India; both are U.S. citizens.

Their lawyer, Stephen P. Scaring, said he hoped the couple could be freed sometime this week.

"We're trying to get them out as soon as possible," he said. "They're excited to get home to their children."

Prosecutors alleged that the couple held the housekeepers from 2002 to 2007 as virtual slaves, denying them freedom of movement, subjecting them to serious physical abuse and paying them no wages except for $100 a month sent to relatives abroad.

The Sabhnanis were arrested after law enforcement authorities said one of the housekeepers was found wandering outside a doughnut shop near their Muttontown mansion at 6 a.m., muttering that she had been injured and wanted to return to Indonesia.

She told authorities that dozens of scars and bruises on her face, neck, back, chest and arms resulted from beatings with a stick, flesh cuts made with a small knife and burns inflicted by scalding water, prosecutors said.

Federal agents searching the home later in the day found the second woman.

In a written ruling, a three-judge panel of the appeals panel noted the couple's wealth, saying they owned outright their Long Island home and a Manhattan apartment, properties exceeding $3 million in value. The couple owned $500,000 in jewelry and had cash and securities holdings, apparently amassed from a perfume and cosmetics business, totaling $3 million to $5 million, the court said.

Prosecutors had asked they be held without bail, saying they had a strong motive to flee because conviction was likely and prison terms would range from 18 years to 40 years.

Defense lawyers contended the appearances of the couple in court could be guaranteed by a $1.5 million bail for each defendant and by electronic monitoring.

The appeals court said it was reasonable to release the couple now that the government has agreed there were conditions that would assure their appearance in court. It returned the case to a lower court judge to formally set bail and order the release. It was unclear when the couple would appear in court.

Prosecutors have increased the recommended bail package, saying Mahender Sabhnani could be released on $2 million bail and Varsha Sabhnani could be released on $2.5 million bail, as long as the bails are fully secured by cash deposits and property valued at $4.5 million.

The government also demanded compliance with other conditions, including home detention, monitoring of all their computer activity and the hiring of a private security officer to accompany them on any approved travel outside their residence, including to religious services.

(© 2007 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)