A former financial adviser to the ousted leaders of Kyrgyzstan was accused by U.S. authorities of obstructing a probe into allegations of insider trading.
Eugene Gourevitch was charged with one count of conspiracy and one count of obstructing justice in a U.S. Securities and Exchange Commission civil case brought over trading in shares of Global Industries Ltd., according to an indictment unsealed today in Brooklyn, New York, federal court.
The SEC, in a case filed in Manhattan federal court in September 2011, alleged that unknown purchasers made more than $1.7 million in profit by trading on non-public information about the company in September 2011. A Moscow-based investment firm, Ergoport Experts Ltd., identified itself as the trader and denied acting on inside information. The case was dismissed earlier this month after it was dropped by the agency.
Gourevitch is accused in the indictment of acting to “obstruct, influence and impede and attempt to obstruct, influence and impede” that case between September 2011 and December 2011. No other details are provided in the document, which was filed under seal in December 2012.
Marc Agnifilo, a lawyer for Gourevitch, said in an e-mail that his client voluntarily came to New York to face those charges and pleaded not guilty.
“We anticipate a favorable resolution of this case,” he said.
The SEC’s civil case in Manhattan was related to a separate criminal probe in Brooklyn, federal prosecutors in Brooklyn told U.S. District Judge Ronnie Abrams at an October 2012 hearing. The criminal case involved an individual “who previously held a high-level position in the government of a Central Asian country” and whose government was overthrown by a coup in 2010, prosecutors said in court papers they filed in the SEC’s case.
The former official is Maksim Bakiyev, the son of former Kyrgyzstan President Kurmanbek Bakiyev, who was overthrown in April 2010, according to a spokesman for the current Kyrgyzstan regime, Kadyr Toktogulov.
The U.S. had sought to extradite the younger Bakiyev from the U.K., where he had been living, to face charges of conspiracy to commit securities fraud and obstruction of justice. The government dropped that effort in May.
The Bakiyevs and Gourevitch, a close friend and adviser to Maksim Bakiyev, have been accused of corruption and other crimes by the current Kyrgyzstan regime.
The case is U.S. v. Gourevitch, 1:12-cr-00758, U.S. District Court, Eastern District of New York (Brooklyn).
To contact the reporter on this story: Christie Smythe in federal court in Brooklyn, New York, at +1- email@example.com
To contact the editor responsible for this story: Michael Hytha at firstname.lastname@example.org