Yesterday a court in Moscow upheld the house arrest of Baring Vostok founder Michael Calvey on fraud charges despite the revelation that he has a malignant tumor.
The US businessman faces embezzlement charges that he says are being used to pressure him in a business dispute. A Moscow court had ruled last month to extend the house arrest of Calvey, his French business partner Philippe Delpal and three others until Aug. 13.
Calvey’s lawyer told an appeals judge that his client is suffering from a malignant tumor and that keeping him under house arrest violates his rights, the RBC news website reported ahead of Tuesday’s decision.
Moscow’s first court of appeals rejected the request to release Calvey and the other defendants from house arrest early.
Calvey himself said prior to the ruling that he has soft tissue sarcoma following a hip arthroscopy on March 20.
“Doctors who observe me are concerned about the low level of vitamin D in my blood and recommend daily walks in addition to medications,” RBC quoted Calvey as saying.
Shockwaves in the investment community
One of the most established Russian private equity firms, Baring Vostok invested in some of Russia’s best tech companies. In early 2019, the arrest of the firm’s executives under controversial charges shocked the business community in Russia and beyond. Calvey and his colleagues have always maintained their innocence.
The involvement of Artem Avetisyan, the plaintiff in case, in an array of government-related organizations, raised speculations about the level of knowledge and involvement of the Russian government and president in the case.
A new shockwave came earlier this month when the head of Russian Venture Company (RVC), Alexander Povalko, was arrested then placed under house arrest for 45 days. The FSB (Federal Security Service) and police officers ransacked his home.
Established by the Russian government in 2006, RVC is a major player on the country’s innovation scene. It acts as a fund of funds and supports a variety of programs, from startup accelerators to industry research and events.
The Russian justice system is known for its next-to-zero rate of acquittals. Only 0.25% of all cases referred to court in 2018 ended with not-guilty verdicts.
