Sergei Polonsky was arrested on the island of Koh Dek Kuol (Nail Island) Phnom Penh (AFP) - A Cambodian court on Monday freed a Russian tycoon wanted by Moscow over allegations he embezzled tens of millions of dollars in a real estate scam, and suspended extradition proceedings against him, his lawyer said.
Sergei Polonsky was detained in Cambodia in November on an island off the southwestern city of Sihanoukville after a request by the Russian government, which also sought his extradition.
In August, a Russian court ordered Polonsky's detention after he was charged in absentia for his alleged role in a 5.7 billion rouble ($174 million) swindle which defrauded more than 80 investors.
Investigators have accused the businessman of orchestrating the scam linked to the construction of a housing complex in 2007-2008.
But Cambodia's Appeals Court on Monday said authorities could not currently extradite Polonsky because he faces a separate trial in Cambodia over allegations he attacked the crew of a boat, according to his Cambodian lawyer.
The court ordered the property tycoon's immediate release, Benson Samay said, adding the allegations against his client in Russia were based on a "turf war" over his business interests.
A jubilant Polonsky spoke to reporters outside the court.
"I am not guilty. I am a businessman," he continued, adding that he would stay in Cambodia and start a "big project" to develop a number of islands.
Polonsky, who is believed to have business interests in Cambodia, was previously detained on New Year's Eve in 2012 in Sihanoukville over accusations he and two other Russians threatened a Cambodian boat crew at knifepoint.
He was granted provisional release in April last year after spending three months in a Cambodian prison.
Polonsky, 41, is an outspoken real estate tycoon whose extravagant behaviour and racy business slogans have repeatedly raised eyebrows in Russia.
His business nosedived after the onset of the 2008 global financial crisis, forcing him to abandon work on Moscow's Federation Tower, which he had hoped would become the tallest building in Europe.
Russia insists on Polonsky's extradition despite Cambodian court ruling - source
Sergei Polonsky
© Photo:
A Russian court has ordered the arrest of businessman Sergei Polonsky in absentia, so the Russian law enforcement authorities will continue insisting on his extradition in spite of the Cambodian court ruling, a source from the Russian law enforcement authorities said on Monday.
"The Russian law enforcement authorities have charged Polonsky with a crime in absentia. A Russian court has ordered his arrest in absentia," the source said.
"This gives reason to the Russian law enforcement authorities to continue insisting on the extradition of S. Polonsky with the purpose of his fair trial," the source emphasized.
Polonsky was imprisoned in Cambodia from December 31, 2012, until April 3, 2013, on the counts of violence against local sailors. He was facing up to three years in prison but the defense team came to an agreement with the sailors, who did not press charges and received compensation from Polonsky.
The businessman was released with travel restrictions but his case was not closed.
Russia charged Polonsky in absentia on June 14, 2013, with fraud in the construction of the Kutuzovskaya Milya apartment block.
Detectives said Polonsky "stole more than 5.7 billion rubles from the Kutuzovskaya Milya shareholders".
More than 80 citizens were recognized as injured parties.
The Moscow Tverskoi Court ordered his arrest in absentia and it was announced at the court hearing that Polonsky had been put on the international most wanted list.
The Moscow City Court upheld Polonsky's arrest in absentia on September 30.
Polonsky's detention in Cambodia became known on November 11.
The Russian Prosecutor General's Office filed an extradition request with the Cambodian law enforcement authorities.
The extradition hearing was delayed several times.
Lawyer Alexander Karabanov said on November 25 that his client had been offered political asylum in several states, including the United States.
The extradition hearing was held on January 9, 2014.
It was reported on January 13 that the Cambodian court had freed the businessman due to the absence of grounds for his extradition.
A court in Cambodia has found no reasons to meet Russia’s demand to extradite Russian businessman Sergey Polonsky to Russia, where he is charged of fraud.
On Monday, Polonsky’s lawyer Alexander Karabanov told the Interfax news agency that his client was freed by the court. The court hasn’t found anything in Sergey Polonsky’s case to consider his extradition to Russia necessary, Mr. Karabanov said.
The lawyer didn’t go into any further details.
A Cambodian court will rule on the extradition of Russian businessman Sergey Polonsky in Russia on January 12, a source familiarised with the situation in the trial told reporters.
"The investigation panel of the Phom Pehn criminal court will rule on the extradition of Polonsky on January 12," the source said.
A lawyer of the Russian business tycoon Aleksander Karabanov was barred from a flight to Cambodia, where he should have given legal assistance to his client. Meanwhile, the lawyer was handed in a summons to turn up in the Russian law enforcement agencies to testify on the situation over Polonsky’s extradition to Russia, a source at the Moscow airport Sheremetyevo said.
On June 14, the investigation department of the Russian Interior Ministry accused in absentia Sergey Polonsky of fraud in the construction of the residential district "Kutuzovskaya Mile". More than 80 people were found as injured parties in the fraud case. The detectives found that the company controlled by Polonsky had received around 5.7 billion roubles ($174.5 million) from its depositors, but then froze up the construction project, breaking the liabilities under the contracts. After that the company’s top management has initiated deliberate bankruptcy and shutdown of the company.
Meanwhile, the Cambodian law enforcement agencies are investigating a criminal case against Polonsky for the illegal deprivation of freedom of the sailors and the captain of a ship, which the Russian business tycoon owned. The Cambodian authorities have arrested Polonsky at the end of 2012 within the criminal case, but he was released on bail in April 2013.
Voice of Russia, , Interfax
1 comment:
money talks , bullshit walks... even in the US... the rich gets away with murder while the poor goes to jail for stealing bread or chewing gum.
Post a Comment