Russian investigators obtained new documents in an embezzlement case against Baring Vostok Capital Partners Ltd. founder Michael Calvey and several other executives, which could prompt the defendants' lawyers to apply for the termination of proceedings on the grounds of the lack of evidence, Kommersant reported Sept 18.
Calvey and several other executives working for or linked to Baring Vostok were etained in February over the alleged embezzlement of 2.5 billion Russian rubles from Public Stock Co. Orient Express Bank, which was controlled by Baring Vostok at the time. They deny any wrongdoing, arguing the accusations are part of a corporate dispute over the control of Orient Express.
The February arrests were carried out at the request of one of the lender's minority shareholders and business partners of Russian businessman Artem Avetisyan. The plaintiff contested a transaction handing over a 59.9% stake in Luxembourg-based International Financial Technology Group to Orient Express Bank as a repayment of a loan issued to a company controlled by Calvey. The IFTG stake was assessed in the transaction at around 3 billion rubles, but the plaintiff argued that the value of the shares was only 600,000 rubles.
However, the latest independent assessment, which is now in the hands of investigators, puts the market value of the IFTG stake at 3.8 billion rubles, which could dramatically change the situation of Calvey and other executives detained in the embezzlement case, Kommersant noted. Russian business ombudsman Boris Titov told the newspaper he hopes the latest findings will prompt prosecutors to review their stance and ultimately terminate the criminal proceedings. Alexis Rodzianko, who heads the American Chamber of Commerce in Russia, also expressed hope that the case against Calvey, who is now under house arrest, and other executives could be dropped due to the lack of evidence, news agency Prime reported Sept. 18.
Orient Express Bank, which is now controlled by Artem Avetisyan and his business partners, said it has not yet seen the IFTG stake assessment, but if the document exists, the bank will submit a motion to examine its independence, as the findings contradict the opinion of an international auditor from the "Big Four" and the conclusions of Luxembourg-based lawyers, Prime noted.
As of Sept. 18, US$1 was equivalent to 64.15 Russian rubles.
