MOSCOW, January 9. /TASS/. Moscow’s Basmanny Court has prolonged the house arrest of Michael Calvey, the founder of the Baring Vostok private equity firm, who is accused of embezzlement, until February 13, a TASS correspondent reported from the courtroom.

"[The court] hereby extends the preventive measure in the form of house arrest for Calvey until February 13, 2020," Judge Yulia Safina declared, reading out the ruling.

By the same ruling house arrest was extended for of the Baring Vostok’s partner Philip Delpal, former director of Vostochny bank Alexei Kordichev and former director for investments of Vostochny bank, Alexander Tsakunov.

The investigation into the case is completed. All the defendants were charged with embezzlement committed by an organized group or on an especially large scale (part 4, article 160 of the Criminal Code of the Russian Federation).

Court session

At the court session, the prosecutor asked to extend the house arrest to all the defendants in the case, except Tsakunov.

"In view of the circumstances of the case, I ask you to dismiss [petition] for the extension of Tsakunov’s house arrest as very harsh measure," a representative of the prosecutor’s office said.

At the meeting, Michael Calvey in court declared his innocence and asked for release on bail in the amount of 25 mln rubles ($407,860). Philip Delpal once again declared his innocence and also asked for release on bail in the amount of 25 mln rubles.

"At first I was accused of fraud, now they charge it to embezzlement, but it is even more absurd and has nothing to do with reality. I am ready to prove this in court and ask the court to let me be [released]on bail, which I offer in the amount of 25 million rubles," Delpal said.

The investigator asked to leave the accused under house arrest.

The verdict has not yet entered into force and may be appealed to the Moscow City Court.

Baring Vostok’s case

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.

Russia’s Investigative Committee launched a criminal case into the embezzlement of 2.5 bln rubles ($37.5 mln) from the Vostochny Bank on February 13. Michael Calvey is the key defendant in the case. On February 15, 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).