Moscow court slaps 5.5-year suspended sentence on Calvey

MOSCOW, Aug 9 (PRIME) -- The Meshchansky District Court of Moscow has imposed a 5.5-year suspended sentence on U.S. investor Michael Calvey under a case of a 2.5 billion ruble embezzlement, according to information obtained by PRIME in the court late on August 6.

“The court makes a conclusion that remediation of the defendants is possible without isolation from the society. … To impose the penalty in the form of a suspended sentence of five years and six months,” Judge Anna Sokova said.

The time that Calvey spent in a pre-trial detention center, under the house arrest, and under a ban to do certain actions will count for the suspended sentence.

The court also imposed suspended sentences on all other defendants, including a 4-year suspended sentence for Calvey’s business partner Philippe Delpal.

The court also suspended proceedings under the 2.5 billion ruble suit filed by Orient Express Bank against the defendants as they have redeemed the financial damage and signed an amicable agreement during the proceedings. It also lifted the arrest that had been imposed on assets of Calvey.

Calvey called the sentence ridiculous as he did not think there was any crime. He said that his lawyers and he would study the text of the sentence in its entirety and make a decision on appealing against it after that. Delpal asked his lawyers to prepare documents that are necessary to appeal against the decision as soon as possible.

Investment company Baring Vostok, which was founded by Calvey, said that all defendants were innocent, and that the sentence was groundless.

In February 2019, the Basmanny District Court of Moscow arrested Calvey and five other defendants over an alleged 2.5 billion ruble embezzlement from Orient Express Bank. In April of the year, Calvey was released under home arrest.

Investigators believe that Calvey, his business partner Delpal, and several other managers convinced shareholders of Orient Express Bank to vote for a compensation agreement to receive a 59.9% in International Financial Technology Group (IFTG) instead of money. The shares were valued at 3 billion rubles under the deal, while their real value amounted to 600,000 rubles.

In December, the case was requalified as embezzlement from fraud. None of the accused pled guilty, including former CEO of Orient Express Bank Kordichev who earlier pled guilty of fraud and bore testimony against the other accused. On August 5, the Moscow City Court left Calvey under house arrest at least until November, and the First Court of Appeal later upheld the decision.

(73.1304 rubles – U.S. $1)

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