MOSCOW: A Moscow court on Thursday reached a guilty verdict in the embezzlement case against executives of the Russia-based investment fund Baring Vostok that has rattled the business community. The fund's founder, Michael Calvey, 53, was arrested along with French banker Philippe Delpal, 48, and several associates in February 2019.

They are accused of defrauding Vostochny Bank of 2.5 billion rubles ($34.2 million, 28.8 million euros), charges that carry a maximum penalty of 10 years in jail.

However, in July, prosecutors requested a suspended sentence for the defendants. Judge Anna Sokova of the Meshchansky district court in Moscow on Thursday found all seven defendants in the case guilty of the charges. It was unclear when they would be sentenced.

Last year Baring Vostok reached a settlement with Vostochny Bank, paying the disputed 2.5 billion rubles to the bank, which said it would be dropping all claims. But prosecutors continued pursuing criminal charges.

Russia's Supreme Court then ordered the release of Calvey and Delpal from house arrest but restricted them to a curfew and no contacts with witnesses or other defendants in the case. The case against Calvey, who has worked in Russia for more than two decades, and his associates shocked the Russian business community.

Baring Vostok has invested in some of the biggest companies in the country including tech giant Yandex and Ozon, a top online retailer. Influential voices in the Russian business community publicly supported Calvey and Delpal, saying that the case was a commercial dispute and should not be decided by a criminal court.

Baring Vostok used to be a major shareholder in Vostochny Bank, and defendants in the case insist it was fabricated in an attempt by minority shareholders to gain full control of the bank.