Russian court jails US founder of investment fund pending fraud trial

A Russian court on Saturday jailed the US founder of an investment firm for two months over fraud charges he says were fabricated for use in a shareholder battle.

Michael Calvey, inset, founder of the multibillion-dollar investment fund Baring Vostok Capital Partners (BVCP), was placed under arrest until April 13 as he and five others await trial on charges they embezzled 2.5 billion rubles ($37.7 million).

Authorities detained four BVCP employees on Friday, including French national Phillipe Delpal. Two other suspects include a former fund employee and someone at another firm mentioned in the probe. All six are now under pre-trial arrest. In a statement Saturday, Baring Vostok said the claims made against its employees “have no merit.”

The case has already drawn comparisons to other high-profile probes against foreign investors in Russia, notably one against Bill Browder and the Hermitage Capital fund. Ironically, it comes as Russia hosts a highprofile investment forum in its Black Sea city Sochi.

Calvey says he is innocent and argued in court that the probe is a bid to exert pressure on him amid a shareholder conflict within Vostochniy Bank, which he is trying to resolve in a London arbitration court. The charges against him are intended to “pressure Baring Vostok to drop its arbitration claims in London or to obstruct the new share emission of Vostochniy Bank,” he said.