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Russia's top prosecutor supports ‘legitimate’ criminal case against US financier Calvey

The prosecution had "sufficient grounds" for opening a criminal case

© AP Photo/Pavel Golovkin

MOSCOW. June 7./TASS/. The criminal case against Michael Calvey, the founder of the Baring Vostok private equity firm arrested in a major embezzlement case, was opened legitimately, said Russian Prosecutor General Yuri Chaika on Friday.

"We had sufficient grounds for opening a criminal case and it was launched legitimately. There are no doubts about this," Chaika told the St. Petersburg International Economic Forum (SPIEF).

He noted, however, that a new independent expertise was being carried out at the moment. "Of course we are keeping a close eye on these issues," the top prosecutor noted.

Calvey case

Michael Calvey, the founder of the Baring Vostok private-equity firm, was detained and then arrested on February 16 on suspicion of embezzling 2.5 bln rubles ($37.5 mln) from Vostochny Bank. Moscow’s Basmanny Court also arrested five other suspects in the case. Calvey was sent to a pre-trial detention center, but later he was placed under house arrest.

Read also

No request from US financier Calvey to attend SPIEF, source says

According to the investigation, he and his accomplices put together a scheme, where the First Collection Bureau, under their control, waived its right to a 59.9% stake in a Luxembourg-based company called the International Financial Technology Group to the Vostochny bank in order to pay it back for a 2.5 bln-ruble debt. However, law enforcement agencies say the stake was actually worth 600,000 rubles ($9,100).

On February 7, Serzod Yusupov, a minority shareholder in Vostochny Bank filed a complaint with Russia’s Federal Security Service (FSB). In addition, Artyom Avetisyan, another Vostochny shareholder, along with the deputy chairman of the bank’s board Konstantin Rogov testified against Michael Calvey.

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