UPDATE: Moscow court releases Michael Calvey under house arrest

(Adds details in fifth paragraph)

MOSCOW, Apr 11 (PRIME) -- The Basmanny District Court of Moscow on Thursday released investment fund Baring Vostok’s founder Michael Calvey, detained earlier over alleged 2.5 billion ruble embezzlement from Orient Express Bank, from custody and put him under house arrest for three days.

“The court finds grounds for changing Calvey’s preventive measure,” Judge Yulia Safina said.

Preliminary investigation into the embezzlement case has been prolonged until August 13, Safina also said.

The court’s press secretary Yunona Tsaryova said the investigation can apply with a request to prolong house arrest, but such application has not been filed so far.

The court also released Alexei Kordichev, former head of Orient Express Bank, another defendant in the case, under house arrest. Kordichev pleaded guilty and testified against himself and accomplices, Judge Valentina Levashova said.

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

(64.7373 rubles – U.S. $1)

End