A court in Moscow has ruled against an appeal by U.S. investment fund manager Michael Calvey and rejected his appeal to be moved to house arrest in a fraud case, Bloomberg reports.
The Moscow City Court issued the ruling against Calvey, the founder of the Russia-based private-equity group Baring Vostok, on Thursday. The company said it will appeal against the decision.
Calvey, one of the most prominent foreign investors in Russia, along with three additional Baring Vostok employees and two other executives, were detained in Moscow earlier in February and charged with large-scale financial fraud worth around $38 million.
Calvey and the others, who are also being held in detention pending trial, deny the charges. They face up to 10 years in prison.
“I do not plan to escape, I am going to fulfill all my obligations,” Calvey said, addressing the court via a video link from his Moscow jail.
Calvey also said that he “must advise my children in choosing university courses, and this is why this detention is very difficult.”
His arrest in Moscow on February 14, amid persistently and severely strained ties between Russia and the United States, sent shock waves through Western business circles.
Baring Vostok has said that the case was linked to a commercial conflict with Vostochny Bank.
“We are convinced that our employees have acted properly and will defend their rights,” Baring Vostok said on Thursday. The company added that, over the past 25 years, its funds “have made a significant contribution to Russia’s sustainable economic development by investing in Russian companies, many of which have become leaders in their sectors and have successfully entered international markets.”