MOSCOW, March 31. /TASS/. The Russian Ministry of Internal Affairs opened a criminal case against owners of Summa group on fraud and criminal association charges, official representative of the Ministry Irina Volk told TASS.

According to her, the Investigative Department of the Ministry of Internal Affairs of Russia carries out preliminary investigation of the criminal case over "embezzlement of budgetary funds on a grand scale, including those allocated for the construction of infrastructure and power supply facilities."

She also noted that on March 30 the Ministry and the Federal Security Service conducted searches in 25 regions of Russia, including Moscow and the Moscow region, aimed at detaining suspects in the crime.

"Ziyavudin Magomedov and Magomed Magomedov, co-owners of Summa group of companies, as well as Head of the company in the group Artur Maksidov were detained on suspicion of committing these crimes. Materials for applying a measure of restraint to the detainees are sent to court," Volk concluded.</s>MOSCOW, March 31 (Reuters) - A Moscow court ordered on Saturday that Ziyavudin Magomedov, co-owner of Russia’s Summa group, remain in pre-trial custody until May 30 over suspected embezzlement case.

Magomedov, one of Russia’s richest men, has denied the charges against him. (Reporting by Polina Nikolskaya Writing by Gabrielle Tétrault-Farber Editing by Larry King)</s>MOSCOW (Reuters) - A Moscow court ordered on Saturday that Ziyavudin Magomedov, co-owner of Russia's Summa group, remain in pre-trial custody until May 30 over suspected embezzlement case.

Magomedov, one of Russia's richest men, has denied the charges against him.</s>Moscow : Russian authorities have arrested billionaire Ziyavudin Magomedov on charges of embezzling more than $US35 million ($45 million) in one of the highest-profile prosecutions of a Russian tycoon in years.

Magomedov denied the charges at a pre-trial hearing, where a judge ordered that he be held in custody until May 30.

One of Russia's richest men, 49-year-old Magomedov holds assets in construction and logistics through his sprawling Summa Group. He also has investments in US tech ventures, including the Virgin One Hyperloop project,

He was detained along with his business partner and brother, Magomed Magomedov, and Artur Maksidov, the head of a company in the Summa Group that was involved in construction of a soccer World Cup venue in the Russian exclave of Kaliningrad.

The hearing on Saturday in Moscow's Tverskoy District Court was held to decide whether Magomedov and his associates should be detained pending trial.</s>Magomed Magomedov, a business partner and brother of co-owner of Russia’s Summa group Ziyavudin Magomedov, attends a hearing on his detention at the Tverskoy District Court in Moscow, Russia March 31, 2018. — Reuters picMOSCOW, April 1 — Russian authorities yesterday arrested billionaire Ziyavudin Magomedov on charges of embezzling more than US$35 million, in one of the highest-profile prosecutions of a Russian tycoon in years.

Magomedov denied the charges at a pre-trial hearing, where a judge ordered that he be held in custody until May 30.

One of Russia’s richest men, the 49-year-old Magomedov holds assets in construction and logistics through his sprawling Summa Group. He also has investments in US tech ventures, including the Virgin One Hyperloop project.

He was detained along with his business partner and brother, Magomed Magomedov, and Artur Maksidov, the head of a company in the Summa Group that was involved in the construction of a soccer World Cup venue in the Russian exclave of Kaliningrad.

Both businessmen will also be held in custody until May 30, the court ruled.

At a hearing in Moscow’s Tverskoy District Court to decide whether Magomedov and his associates should be detained before their trial, Judge Maria Sizintseva said they had acted as part of an organized crime group and had tried to put pressure on witnesses. She rejected an offer from Magomedov to put up a US$35 million bail bond, and ordered he be detained.

Citing the arguments against granting bail, the judge said Magomedov had access to his own aircraft, and assets abroad. The day before he was detained, he had booked a flight from Moscow to Miami, the judge said.

Summa said it planned to appeal the court decision and was ready to cooperate with the investigation.

Invited to speak from a cage in the courtroom, Magomedov, dressed in a dark-blue jogging suit, said: “I categorically disagree with the charges presented ... The prosecution case does not stand up to scrutiny.”

He said he needed treatment in the United States for a medical problem, and offered to put up the US$35 million bail. “I’m willing to pull together this money, so no one has any thoughts that I might go on the run,” Magomedov said.

Magomedov is part of a group of Russian multi-millionaires who, while publicly loyal to the Kremlin, are not in President Vladimir Putin’s inner circle.

Some members of the group say they are being squeezed by a tough economy, Western sanctions on Russia, and powerful state-run companies that are muscling in on nearly all sectors of the economy.

In past cases when magnates have been prosecuted, some in the Russia business community have said the tycoons were victims of a plot by the Kremlin or by politically connected business rivals – though the authorities deny that.

People familiar with the Russian judicial system say high-profile corruption cases are rarely fabricated, but that the law is applied selectively, and that prosecutions can be influenced by outside factors.

Ziyavudin Magomedov ranked 63rd last year on the Forbes list of the richest business people in Russia with US$1.4 billion. In January, he was listed by the US Treasury Department as one of 96 “oligarchs” close to Putin.

His Caspian Venture Capital fund has investments in ride-hailing service Uber; Diamond Foundry, a company that produces man-made diamonds; and Peek, an online leisure activities company.

Magomedov is also co-executive chairman of Los Angeles-based tech firm Virgin Hyperloop One, which is chaired by Richard Branson. It is one of several firms developing a futuristic transport system that involves propelling people at high speed through sealed tubes.

He also co-owns the Novorossiysk Commercial Sea Port with Russian oil pipeline monopoly Transneft and transportation group Fesco. — Reuters</s>Russian billionaire businessman Ziyavudin Magomedov, a co-owner of the Summa investment group, was arrested on Saturday on charges of misappropriating millions in state funds designed for infrastructure and energy projects.

Magomedov was arrested in Moscow together with his brother and Summa co-owner, Magomed Magomedov, and the head of one of the companies involved in Summa, Artur Maksidov.

The businessmen brothers are suspected of theft by fraud and embezzlement while acting as part of an organized crime group. The prosecution believes the stolen money, some 2.5 billion rubles ($44 million), have been transferred from Russia to be deposited in offshore accounts controlled by Magomedov. The exact whereabouts of the money is unknown, the prosecutor's office admitted on Saturday.

Magomedov, who has stakes in construction, logistics, transportation and energy companies through his multi-profile Summa group, landed the sixty-third spot on the Forbes' list of Russia's richest businessmen. His personal assets are estimated to be worth $1.4 billion. His brother, Magomed Magomedov, has an estimated net worth of $0.45 billion.

In the run-up to the arrests, extensive searches were carried out in 25 Russian regions, including in Moscow, the Russian Interior Ministry reported.

Russian Kommersant daily reported that investigations were also conducted into the embezzlement of some 752 million rubles ($13.2 million) from the construction of a football stadium in Russia's exclave of Kaliningrad, which was commissioned for the upcoming FIFA World Cup in Russia

At the pre-trial hearing in Moscow's Tverskoy District Court, Magomedov pleaded not guilty, claiming that the case against him "does not stand up to scrutiny." The court ordered Magomedov and his brother be to kept in custody for two months, until May 30, thus refusing an unprecedentedly high bail, which amounted to the total sum of losses the brothers are accused of causing the state budget – 2.5 billion rubles. The investigators revealed that Magomedov had booked tickets to Miami for the following day and might flee the prosecution, as he has a private jet at his disposal. Magomedov insisted that he planned to undergo a medical procedure in the US and intended to return to Moscow by April 10.

The investigation said at least five other people face charges in what is slated to become one of the most high-profile embezzlement investigations in Russia in recent years. Two of them are on the run in the United Arab Emirates and have been arrested in absentia.

Summa's group actives include a stake in the Novorossiysk Commercial Sea Port (JSC), Russia's largest commercial seaport operator, which it co-owns with Russian state-funded oil company Transneft and FESCO Transportation Group.

Besides his investment in projects in Russia, Magomedov sits on the executive board of the Los Angeles-based Virgin Hyperloop One, a futuristic transportation startup chaired by Richard Branson.</s>MOSCOW: Russian authorities on Saturday arrested billionaire Ziyavudin Magomedov on charges of embezzling more than $35 million, in one of the highest-profile prosecutions of a Russian tycoon in years.

 Magomedov denied the charges at a pre-trial hearing, where a judge ordered that he be held in custody until May 30.

 One of Russia’s richest men, the 49-year-old Magomedov holds assets in construction and logistics through his sprawling Summa Group. He also has investments in US tech ventures, including the Virgin One Hyperloop project,

 He was detained along with his business partner and brother, Magomed Magomedov, and Artur Maksidov, the head of a company in the Summa group that was involved in construction of a soccer World Cup venue in the Russian exclave of Kaliningrad.

 The hearing in Moscow’s Tverskoy District Court was held to decide whether Magomedov and his associates should be detained pending trial.

 The judge, Maria Sizintseva, said they acted as part of an organised crime group and had tried to put pressure on witnesses. She rejected an offer from Magomedov to put up a $35-million bail bond, and ordered he be detained.

 Citing the arguments against granting bail, the judge said Magomedov had access to his own aircraft, and assets abroad. The day before he was detained, he had booked a flight from Moscow to Miami, the judge said.

 Invited to speak from a metal cage in the courtroom, Magomedov, dressed in a dark-blue jogging suit, said: “I categorically disagree with the charges presented…. The prosecution case does not stand up to scrutiny.”

 He said he needed treatment in the United States for a medical problem, and offered to put up the $35-million bail. “I’m willing to pull together this money, so no one has any thoughts that I might go on the run,” Magomedov said.

 Magomedov is part of a group of Russian multi-millionaires who, while publicly loyal to the Kremlin, are not in President Vladimir Putin’s inner circle.

 Ziyavudin Magomedov ranked 63rd last year on the Forbes list of the richest businesspeople in Russia with $1.4 billion. In January, he was listed by the US Treasury Department as one of 96 “oligarchs” close to Putin.

 His Caspian Venture Capital fund has investments in ride-hailing service Uber; Diamond Foundry, a company that produces man-made diamonds; and Peek, an online leisure activities company. Magomedov is also co-executive chairman of Los Angeles-based tech firm Virgin Hyperloop One, which is chaired by Richard Branson. — Reuters</s>Russian billionaire businessman Ziyavudin Magomedov, a co-owner of the Summa investment group, was arrested on Saturday onMagomedov was arrested in Moscow together with his brother and Summa co-owner, Magomed Magomedov, and the head of one of the companies involved in Summa, Artur Maksidov.The businessmen brothers are suspected of theft by fraud and embezzlement while acting as part of an organized crime group.. The exact whereabouts of the money is unknown, the prosecutor's office admitted on Saturday.Magomedov, who has stakes in construction, logistics, transportation and energy companies through his multi-profile Summa group, landed the sixty-third spot on the Forbes' list of Russia's richest businessmen. His personal assets are estimated to be worth $1.4 billion. His brother, Magomed Magomedov, has an estimated net worth of $0.45 billion.In the run-up to the arrests, extensive searches were carried out in 25 Russian regions, including in Moscow, the Russian Interior Ministry reported.Russian Kommersant daily reported that investigations were also conducted into the embezzlement of some 752 million rubles ($13.2 million) from the construction of a football stadium in Russia's exclave of Kaliningrad, which was commissioned for the upcoming FIFA World Cup in RussiaAt the pre-trial hearing in Moscow's Tverskoy District Court, Magomedov pleaded not guilty, claiming that the case against him "does not stand up to scrutiny." The court ordered Magomedov and his brother be to kept in custody for two months, until May 30, thus refusing an unprecedentedly high bail, which amounted to the total sum of losses the brothers are accused of causing the state budget - 2.5 billion rubles.The investigators revealed that Magomedov had booked tickets to Miami for the following day and might flee the prosecution, as he has a private jet at his disposal. Magomedov insisted that he planned to undergo a medical procedure in the US and intended to return to Moscow by April 10.Summa's group actives include a stake in the Novorossiysk Commercial Sea Port (JSC), Russia's largest commercial seaport operator, which it co-owns with Russian state-funded oil company Transneft and FESCO Transportation Group.Besides his investment in projects in Russia,</s>A Moscow court has placed billionaire businessman Ziyavudin Magomedov under arrest for two months after prosecutors accused him and two of his partners of embezzling billions of rubles in state funds.

The Interior Ministry said in a statement Saturday that Magomedov, co-owner of the Russian investment group Summa, was detained along with two partners, including his brother, Magomed Magomedov, and Artur Maksidov, the head of a company in the Summa group that was involved in construction of a soccer World Cup venue in the Russian exclave of Kaliningrad.

The three suspects were taken Saturday to Moscow's Tverskoi district court, where a judge was expected to rule on whether to place them under formal arrest.

"The court has granted the motion of investigation that Ziyavudin Magomedov will be remanded into custody for two months, or until May 30," the judge said in reading out his ruling.

Summa Group said in a statement that it disagreed with the court ruling and "intends to appeal it, and is ready to cooperate with the investigators."

A prosecutor told the court at a hearing that the case entails seven instances "of embezzling from federal and regional budgets and from state-run companies."

"The stolen money is held in foreign accounts of offshore companies controlled by Magomedov," the investigator told the court, according to TASS.

A lawyer for Ziyavudin Magomedov asked for his client’s release on bail equivalent to the amount of losses, estimated by prosecutors at 2.5 billion rubles ($44 million) and said that the charges should be seen as a civil case and not a criminal case.

Magomedov is "quite a wealthy man and can repay these losses," Alexander Vershinin, another of the businessman's lawyers, was quoted by Interfax as telling the court.

Forbes magazine listed Ziyavudin Magomedov's fortune at $1.25 billion as of Saturday.

The U.S. Treasury Department in January listed him as one of 96 "oligarchs" close to President Vladimir Putin.

Magomedov's Caspian Venture Capital fund has investments in ride-hailing service Uber, Diamond Foundry, a company that produces man-made diamonds, and online leisure activities company Peek.

He is also co-executive chairman of Los Angeles-based tech firm Virgin Hyperloop One, which is chaired by Richard Branson. The firm is one of several developing a futuristic transport system that involves propelling people at high speed through sealed tubes.

He also is a co-owner of the Novorossiisk Commercial Sea Port with Russian oil pipeline monopoly Transneft and transportation group Fesco.</s>Summa has said its co-owner had spoken to law enforcement. — Reuters picMOSCOW, March 31 — The co-owner of Russia’s Summa investment and trading group, Ziyavudin Magomedov, and two business partners have been detained on suspicion of embezzling large sums of state money, the Russian interior ministry said today.

It said Magomedov was detained along with his business partner and brother, Magomed Magomedov, and Artur Maksidov, the head of a company in the Summa group that was involved in construction of a soccer World Cup venue in the Russian exclave of Kaliningrad.

The ministry added it had conducted searches in 25 Russian regions, including Moscow, in connection with the case.

Summa told Reuters on Friday that Ziyavudin Magomedov had spoken to law enforcement, without providing further detail.

Moscow’s Tverskoy District Court is expecting to receive documents regarding the case from the ministry later on Saturday, allowing it to set a hearing, spokeswoman Anastasia Dzyurko told Reuters.

Ziyavudin Magomedov last year was placed 63rd on the Forbes list of the richest businesspeople in Russia with $1.4 billion. In January, he was listed by the U.S. Treasury Department as one of 96 “oligarchs” close to President Vladimir Putin.

His Caspian Venture Capital fund has investments in ride-hailing service Uber [UBER.UL]; Diamond Foundry, a company that produces man-made diamonds; and Peek, an online leisure activities company.

Magomedov is co-executive chairman of Los Angeles-based tech firm Virgin Hyperloop One chaired by Richard Branson, one of several firms developing a futuristic transport system that involves propelling people at high speed through sealed tubes.

He also co-owns the Novorossiysk Commercial Sea Port with Russian oil pipeline monopoly Transneft <TRNF_p.MM> and transportation group Fesco. — Reuters
The Russian Ministry of Internal Affairs detains Ziyavudin Magomedov, his brother Magomed Magomedov, and the chief executive of the Summa Group on charges of embezzlement of public funds and criminal association. A Moscow court orders Ziyavudin Magomedov, one of the richest Russians, to remain in pre-trial custody until May 30.