Tue, 19 Mar 2019

The American founder of the Baring Vostok investment company has been detained in Moscow and could face charges of large-scale fraud.

Michael Calvey was expected to appear for a custody hearing in Moscow's Basmanny district court on February 15, Russian state media reported.

Calvey was detained on February 14, and five other people, including at least two Baring Vostok executives, were also reportedly detained in connection with the case and face similar charges.

The Interfax news agency reported that the case stems from an unspecified dispute with Vostochny Bank. Baring Vostok owns 52.5 percent of the bank.

Interfax also reported that former Vostochny Bank CEO Aleksei Kordichev was among those detained and that he would also face a custody hearing on February 15 at the Basmanny district court.

Baring Vostok has not issued a statement.

Founded in 1994, Baring Vostok is one of the largest private equity firms in Russia and the former Soviet Union, according to the firm's website. It manages more than $3.7 billion in assets.

Before founding Baring Vostok, Calvey worked for the European Bank for Reconstruction and Development and Salomon Brothers. He is a member of the board of directors of the Atlantic Council think tank in Washington, D.C.

Based on reporting by Reuters, RBC, AP, and TASS

Copyright (c) 2018. RFE/RL, Inc. Republished with the permission of Radio Free Europe/Radio Liberty, 1201 Connecticut Ave NW, Ste 400, Washington DC 20036

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