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Russian court extends US investor’s house arrest until October 13

Calvey’s defense attorney plans to file an appeal with the Moscow City Court
Founder and senior partner of Baring Vostok equity fund Michael Calvey Sergei Karpukhin/TASS
Founder and senior partner of Baring Vostok equity fund Michael Calvey
© Sergei Karpukhin/TASS

MOSCOW, July 8. /TASS/. Moscow’s Basmanny District Court has extended the house arrest of Michael Calvey, the founder of the Baring Vostok private equity firm who is currently under house arrest on fraud charges, until October 13, a TASS correspondent reported from the courtroom.

"The Court hereby upholds the investigation’s request to extend Calvey’s house arrest for three months, that is, until October 13," Judge Artur Karpov stated.

The court has also turned down Calvey’s bail request of five mln rubles ($78,700), making it clear that it shared the investigation’s opinion that while at large, Calvey may try to escape justice or tamper with witnesses.

Calvey’s defense attorney said they planned to file an appeal with the Moscow City Court.

Calvey case

Calvey was arrested in a 2.5 bln ruble ($38.2 mln) embezzlement case. 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 back the 2.5 bln-ruble debt. However, law enforcement agencies say the stake was actually worth 600,000 rubles ($9,100).

About Baring Vostok

Baring Vostok is one of the largest private equity firms focusing on Russia and the CIS with $3.7 bln in capital. Since 1994, the fund has poured more than $2.4 bln in investment into 70 projects in the fields of financial services, oil and gas, telecommunications and media, and into the consumer sector. Baring Vostok’s projects include CTC Media, Yandex, Avito, Ozon, ER-Telecom, 1C, and Novomet.