US investor Michael Calvey, the head of investment company Baring Vostok, was first detained in mid-February on suspicion of laundering 2.5 billion rubles ($38 million) from Vostochny Bank (Vasily MAXIMOV )

Moscow (AFP) – A Moscow court on Thursday ruled against releasing US investor Michael Calvey to house arrest pending trial on his controversial fraud case, despite numerous petitions on his behalf.

The judge at Moscow City Court said Calvey was to remain behind bars until at least April 13, in line with previous rulings for five other people in the case.

The founder of the multibillion investment fund Baring Vostok was first detained in mid-February on suspicion of laundering  2.5 billion rubles ($38 million) from Vostochny Bank. 

He vigorously denies the charges and says they are part of an ongoing shareholder dispute.

He told the court Thursday that he should be allowed house arrest. “I do not plan to escape, I am going to fulfil all my obligations,” he said via a video link from his Moscow jail.

Speaking Russian, the father of three said the he “must advise my children in choosing university courses, and this is why this detention is very difficult”.

Baring Vostok said it would appeal against the decision to keep its founder in jail. 

The fund stressed its track record of “investing in Russian companies” over 25 years.

“This is the first time when somebody so high-profile and with such a positive reputation was arrested,” said Alexander Khurudzhi, head of a business rights association, speaking outside the courthouse.

“(Calvey) has earned his reputation, so this has surprised everyone,” he said.

Authorities this month detained four BVCP employees, along with two other associates. Investigators say that a firm controlled by Calvey embezzled millions from Vostochny bank by regulating a debt with an undervalued asset. 

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