February 15, 2019 - 3:47 AM
MOSCOW - A veteran U.S. investment fund manager was detained in Moscow on Friday and faces fraud charges.
Michael Calvey, founder and senior partner at Baring Vostok equity firm, was detained alongside two other fund managers in the morning, and a Moscow court is expected to rule on their arrest later Friday.
The Basmanny court said Calvey and five other people, including two Baring Vostok managers, face charges of fraud. The Interfax news agency cited an investigator telling the court Friday that Calvey is suspected of embezzling 2.5 billion rubles ($37 million) from Vostochny Bank, where Baring Vostok has a controlling stake.
The charges follow a protracted dispute between Vostochny shareholders.
Calvey, who founded Baring Vostok in 1994, has long worked in Russia and invested heavily in the country's technology sector, including in the web search giant Yandex.
Baring Vostok said in a statement released by Russian news agencies that the detentions are related to the dispute over Vostochny and have no effect on the fund's core activities.
Baring Vostok says it has over $3.7 billion in committed capital for its investments.
News from © The Associated Press, 2019