MOSCOW, June 7 (RAPSI) – The Moscow City Court on Tuesday extended the detention of real estate tycoon Sergei Polonsky, who stands accused of large scale fraud during the construction of two residential complexes, until August 12, RAPSI reported from the courtroom.

The alleged damage caused by Polonsky is estimated at over 2.6 billion rubles ($39.5 million) in total.

Investigation into the case has been completed; trial participants have almost finished familiarization with case materials.

Polonsky is the founder of Potok (formerly Mirax Group), a diversified corporation that has been involved in several large development projects including Federation Tower in the Moscow International Business Center, office buildings Mirax Plaza, Poklonnaya 11 and Admiral, condominium developments Fort Kutuzov, Kutuzovskaya Riviera, Rublyovskaya Riviera, Mirax Park, Golden Keys 1 and 2, and the Well House.

He ceded operational control of the company in 2012. Potok announced in October 2012 that businessman Alexei Alyakin signed a framework agreement to buy 100 percent of the company’s stock from Polonsky. However, in February 2013 Polonsky, who was in prison in Cambodia at the time, sent an order to Potok to dismiss Alyakin from his position in the company.

In May 2015, the Cambodian authorities, where Polonsky had been avoiding Russian prosecution, extradited him to Russia. He is currently in detention in Moscow and facing fraud charges on the theft of 5.7 bln rubles ($86.7 mln) from Kutuzovskaya Mile interest holders.

If convicted, Polonsky could face up to ten years in prison. Polonsky has pleaded not guilty.