COURT EXTENDS CUSTODY FOR EX SENATOR FROM KALMYKIA

ITAR-TASS News Agency, Russia
May 29, 2007 Tuesday 07:44 AM EST

Moscow’s Basmanny Court on Tuesday extended, until August 2, the
custody for former senator from Kalmykia Levon Chakhmakhchian,
accused of fraud.

"The court thereby granted the prosecutor’s demand to extend his
custody by another three months," Chakhmakhchian’s lawyer Alla
Polyakova told Itar-Tass.

Prosecutors did not present new reasons for keeping the former senator
in custody, the lawyer said.

"The main argument for extending custody for my client is the claim
that Chakhmakhchian, if at large, may escape investigation, hamper it,
destroy evidence or put pressure on witnesses. The investigation into
his case has been extended until August 2, as well," Polyakova said,
adding that she would appeal the court’s Tuesday ruling.

Earlier, the Russian Supreme Court upheld the conclusion on hallmarks
of corpus delicti in the former senator’s actions.

"Chakhmakhchian is accused of stealing 1.5 million dollars /40 million
roubles/ using his office position," prosecutors said.

According to investigators, the official together with other members
of a criminal group which including his son-in-law — an aide to an
Audit Chamber inspector — and chief accountant of the non-profit
Association of Russian-Armenian Business Cooperation, "induced the
leadership of large airline through fraud, and abuse of office powers,
to pass to them a remuneration to the tune of 1.5 million dollars,
for settling the alleged problems of the transfer of taxes and customs
duties to the budget."

"On June 2, 2006, Chakhmakhchian and other members of the criminal
group arrived at an office of the airline, where their criminal
actions were intercepted by FSB agents as suspects were receiving
300,000 dollars in cash," he said.

Kalmykia’s parliament terminated Chakhmakhchian’s powers ahead of
time at the request of Federation Council Speaker Sergei Mironov on
June 23, 2006.