Friday, September 22, 2017

Russian trader stands trial for Ponzi scheme

The Leninsky District Court in Yekaterinburg started hearing one of two criminal cases against businessman Alexei Kalinichenko on Tuesday.

Kalinichenko allegedly defrauded investors from several countries of up to $30 million through a Ponzi scheme, investigators claim, according to Rapsi News.

Investigators allege that Kalinichenko established investment companies and encouraged individuals to deposit their savings with the promise of high profits on the interbank market. Kalinichenko instead deposited the money into his own bank account with no intention of paying on the liabilities.

Kalinichenko allegedly laundered $10.5 million, defrauding investors from Russia, Kazakhstan, Germany, Belarus, Ukraine and Latvia, Rapsi News reports.

The case is being tried in two parts, with one of the cases being referred to the court in May. In June, Kalinichenko fled to Italy where he was under arrest by Interpol. In October 2009, the Russian Prosecutor General's Office had its extradition request satisfied, but Kalinichenko fled to Morocco where he was caught again.

Kalinichenko was brought to Moscow in mid-May and faces up to 10 years in prison, according to Rapsi News.