The fraud squad's highest-profile arrest ... Felix Lyle, centre, with his legal team, is greeted by Strike Force Apia officers at Surry Hills police station.

Felix Lyle, centre, with his legal team, was greeted by Strike Force Apia officers at Surry Hills police station on his arrest. Photo: James Brickwood

Bikie boss Felix Lyle is set to be released from jail today after a magistrate yesterday agreed to slash the amount of cash he needed for bail.

For three weeks the Hells Angel head honcho has been cooling his heels in Long Bay jail, having failed to find an "acceptable person", that is someone without a criminal record, who was willing to put up $100,000 in cash.

"We come cap in hand," Mr Lyle's lawyer Martin Ricci told Central Local Court yesterday.

He said that none of Mr Lyle's acquaintances had a spare $100,000 cash lying around.

Mr Ricci asked for the amount to be reduced to $20,000.

Colin Shaw, representing the Crown, objected, saying the amount was not enough to be a deterrent.

In agreeing to the reduced amount, the magistrate Lee Gilmour said that bail should not be fixed so high that it was "tantamount to bail refused".

Mr Lyle, 54, and his associate Terrence Reddy, 48, are accused of using vulnerable people, including a woman with terminal cancer, to defraud millions of dollars from financial institutions.

Police documents tendered yesterday allege the pair organised for these people to become directors of various companies.

Behind their backs, Mr Lyle and Mr Reddy allegedly used false and inflated documents in their companies' names to obtain money fraudulently.

These deals included a loan for the purchase of a $63,000 Mercedes-Benz van from an Orange car dealer and a mortgage for a $1.2 million property in Botany Road, Alexandria.

Police say they also seized fraudulent documents relating to a property in Oxford Street, Darlinghurst, which the group intended to use as a tattoo parlour.

Police also allege Mr Lyle obtained fraudulent funding of $140,000 to acquire four Harley Davidson motor bikes.

The police allege no payments have been made on the bikes and Mr Lyle knows where they are.

Last December, police say they intercepted a text message from Mr Lyle about the bikes.

"Take 'em to th cave," he is alleged to have instructed an underling.

As part of Mr Lyle's bail conditions he has agreed to stay away from millionaire car dealer Terry Mullens, who owns a luxury car dealership in Burwood.

Last month, five of Mr Lyle's Hells Angels associates were charged over the alleged theft of four luxury cars, and attempting to extort $120,000, from Mr Mullens.

The Herald understands Mr Mullens had been asked if he would provide Mr Lyle's bail money.

Mr Mullens has had his own brush with the law, having been sentenced to 18-months' periodic detention in 1997 for his part in organising fraudulent car loans.