MOSCOW, November 12. /TASS/. The founder of the Baring Vostok private equity firm Michael Calvey is awaiting the start of consideration of his case on embezzlement of 2.5 bln rubles to prove his innocence.
"We are waiting for the start of the trial to prove our innocence," Calvey told a TASS correspondent on Thursday after the Supreme Court ruled to release him from house arrest.
The Supreme Court changed the preventive measure for Calvey and six other defendants in the case from house arrest to a number of restrictions.
The new measure of restraint bans defendants from changing their place of residence, leaving their homes at night, visiting the premises of the Vostochny Bank and the First Collection Bureau, communicating outside of court sessions with persons involved in the case, receiving and sending mail, using telephone communication, except for emergency calls. The period of validity of the new preventive measure established by the court is January 13, 2021.
Talking to TASS on Thursday, Calvey also said that he is happy with the court’s decision to release him from house arrest and plans to return to work at Baring Vostok.
"I welcome the decision to change the preventive measure for the defendants in our case. In the near future I plan to go to work," he said.
In response to the release of Michael Calvey and six other persons involved in the case the Baring Vostok issued the following statement:
"We are pleased that the Supreme Court has taken the long awaited decision - and the only correct one - to release our innocent colleagues from house arrest. The criminal case that has been ongoing for the last year and nine months must be halted, because in actual fact no crime was committed, nor was there any party that suffered damages: after being compensated for the loss, Bank Vostochny withdrew its civil lawsuit. Furthermore, the case materials contain no evidence of wrongdoing by the individuals in question. We continue to be confident in the innocence of our colleagues, and will continue to fight for justice," the firm’s press service said.
Baring Vostok’s case
On February 7, 2019, 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.
Russia’s Investigative Committee launched a criminal case into the embezzlement of 2.5 bln rubles ($32.4 mln) from the Vostochny Bank on February 13, 2019. Michael Calvey is the key defendant in the case. On February 15, 2019, law enforcement agencies arrested Calvey and five others: Vagan Abgaryan, partner at Baring Vostok, Philippe Delpale, an investment partner for the financial industry sector at Baring Vostok, Ivan Zyuzin, Investment Director at Baring Vostok and also General Director of the First Collection Bureau Maxim Vladimirov and Advisor to the Management Board of Norvik Bank, Alexey Kordichev. They are all facing charges under part 4 article 159 of Russia’s Criminal Code (fraud committed on a large scale by an organized group).
According to the initial version of the investigation, Calvey 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 (IFTG), to the Vostochny bank to pay it back for a 2.5 billion-ruble debt. Before the deal, IFTG’s shares were valued at 3 bln rubles. However, the investigation is examining another estimate of 600,000 rubles (according to a Cyprus-based company’s valuation). That said, the Central Bank claimed that the price of these shares was close to zero, the investigator noted. The defense later challenged that appraisal of shares referring to lack of results of the financial expertise. Calvey denies all the charges.