Investigators interrogate Russian Venture Company’s CEO Povalko

MOSCOW, Jun 5 (PRIME) – An investigation has been going on for two days in Russian Venture Company (RVC), and CEO Alexander Povalko is being interrogated by the investigators, a spokesperson for the company told PRIME late on Thursday.

“Investigative actions that started yesterday with a search in the company are going on now, and the CEO of RVC is answering questions of the investigative authorities. The investigation is focused on activity of RVC I LP fund, they are particularly interested in reinvestment of some funds raised from the sale of portfolio company Soft Machines Inc. in another portfolio company Alion. Investment was done starting from 2012 in compliance with all corporate procedures,” the spokesperson said.

“The company provides necessary assistance to the investigative authorities, and we hope for a swift and fair process. The events have no impact on operating activity of RVC, the firm continues working as usual. But the situation obviously concerns and bewilders the whole investment community and our partners.”

U.S.’ Alion Energy develops and builds solar power plants in different countries of the world. RVC has already initiated another investigation of the deal. The investigation believes that co-founder of Bright Capital Mikhail Chuchkevich colluded with the director of RVC’s investment department and provided false information to the board of directors of RVC persuading them to invest in Alion Energy. The invested funds were later withdrawn to the accounts of other companies, inflicting a U.S. $22.7 million loss on RVC.

Alion’s defense said at court in 2019 that it received $70 million of investment from several U.S. and European venture funds. The company has been building and servicing solar power plants in Mexico, Brazil, and India since 2017, and no fund has made any claims against the company outside RVC.

Chuchkevich was arrested on charges of swindling but later released.

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