Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Russia hands U.S. investor Calvey 5.5-year suspended sentence

Economy Aug 06, 2021 08:16PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: U.S. investor and founder of the Baring Vostok private equity group Michael Calvey, who is under house arrest on suspicion of fraud, attends a court hearing in Moscow, Russia August 15, 2019. REUTERS/Evgenia Novozhenina
 
YNDX
0.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Lev Sergeev and Alexander Marrow

MOSCOW (Reuters) - A Russian court on Friday handed U.S. investor Michael Calvey a 5.5-year suspended sentence for embezzlement, a day after finding him guilty, in a case that has rattled Russia's business community.

Calvey, the founder of Russia-focused private equity group Baring Vostok, was detained along with other executives in early 2019 on charges of embezzlement linked to mid-sized lender Vostochny. He and the executives deny the charges.

"The court, unfortunately, didn't or couldn't understand substance of the case with no victim, no damage and no beneficiary," Calvey told reporters outside the court after the more than 12-hour-long sitting was over.

Calvey will not be allowed to change his permanent place of residence in the next five years without informing Russian prison authorities, the verdict said.

"Compared to most cases receiving a suspended sentence is already almost a victory but, on the other hand, it is simply outrageous to be convicted of a crime that never happened," Calvey said.

The court handed French national Philippe Delpal, a partner at the fund, a suspended sentence of 4.5 years.

"Our colleagues are innocent, and both the criminal case and the verdict handed down by the court are groundless", Baring Vostok said about the verdict in a statement.

The case prompted several prominent officials and businessmen to voice concerns about the way the state deals with commercial disputes and executives caught up in them.

Calvey last month told a court that an innocent verdict in his case would trigger billions of dollars in foreign investment and help create thousands of new jobs.

The state prosecutor asked for the six-year suspended sentence over a 2.5 billion rouble ($34.04 million) embezzlement charge.

Initially placed in pre-trial detention and then house arrest, Calvey and his colleagues saw their restrictions ease in November, a move hailed at the time by the head of Russia's sovereign wealth fund as an important signal to all the investment community.

Sovcombank, Russia's third biggest private bank and among the country's top 10 by assets agreed to buy Vostochny Bank, the small lender at the heart of the dispute, in March, but did not disclose financial terms of the deal.

The corporate dispute between Vostochny's top shareholders - Baring Vostok and businessman Artem Avetisyan's Finvision - was settled in October.

Baring Vostok has invested more than $2.8 billion in projects in Russia since 1994, including in internet giant Yandex (NASDAQ:YNDX), online bank Tinkoff and e-commerce firm Ozon, which enjoyed a successful Nasdaq debut late last year.

($1 = 73.4358 roubles)

Russia hands U.S. investor Calvey 5.5-year suspended sentence
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Ja She
Ja She Aug 07, 2021 5:20AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Looks like a continuing Russian authorities' effort of taking over or fully controlling domestic and Russian market operating foreign corporations. Hello Soviet Empire!
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email