Former cosmetics king Vladimir Nekrasov and reputed crime boss Semyon Mogilevich, awaiting trial on tax evasion charges, might have been released from custody late last week, Kommersant reported Saturday, citing sources close to the investigation.
It was not possible to confirm the report Sunday.
Nekrasov, owner of the Arbat Prestige chain that was Russia’s largest cosmetics retailer, and his purported consultant, Mogilevich, were being tried in closed proceedings at Moscow’s Tushinksy District Court. But last month, the judge ordered the case be returned to prosecutors to correct mistakes.
The arrest order for Nekrasov and Mogilevich expired Friday, however, and investigators have failed to complete the paperwork on their case or to call for an extension of the arrests, Kommersant said.
Neither police nor the defense lawyers would confirm or deny their release, the newspaper reported.
Nekrasov is accused of evading taxes of more than $1.5 million. Mogilevich, wanted by the FBI on racketeering, wire fraud and money laundering charges since 2003, is accused of masterminding the tax evasion scheme. Arrested in January 2008 while dining together in an upscale Moscow restaurant, the two men deny any wrongdoing.
Mogilevich, also known as Sergei Shnaider, also has denied any involvement with Arbat Prestige.
In 2007, Arbat Prestige boasted 95 stores in Russia and Ukraine and sales of $475 million. The company is currently going through bankruptcy proceedings and is selling off its stores.
In May, the two men offered to post a bail of $7.5 million — five times more than the amount Nekrasov is accused of failing to pay in taxes — but the court denied the motion.
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