MOSCOW, December 8 (RAPSI, Oleg Sivozhelezov) – Russian developer Sergei Polonsky charged with large-scale embezzlement relating to the construction of premium residential real estate denied his guilt, RAPSI learnt in the Presnensky District Court on Thursday.

After a prosecutor had read the closing indictment, Polonsky emphatically denied the charges of serious fraud brought against him.

On November 7, the court extended the detention of Polonsky charged with embezzlement of 2.6 billion rubles ($41 million) for six months.

According to investigators, Polonsky, aided by Alexander Paperno, Head of the Mirax Group Finance Department and Alexei Pronyakin, CEO of Avanta company, have defrauded participants of shared construction apartment projects of 2.6 billion rubles ($41.2 million), thus committing a serious crime.

Polonsky, who is the founder of Potok (formerly Mirax Group), a diversified corporation that has been involved in several large development projects, is deemed to cause damages in amount of 2.4 billion rubles (around $38 million) regarding Kutuzov Mile and 256 million rubles (around $4 million) with regard to Rublyovskaya Riviera development projects.

Other projects Polonsky has been involved in include Federation Tower in the Moscow International Business Center, office buildings Mirax Plaza, Poklonnaya 11 and Admiral, condominium developments Mirax Park, Golden Keys 1 and 2, and the Well House.

In May 2015, the Cambodian authorities, where Polonsky had been avoiding Russian prosecution, extradited him to Russia.

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