May 9 (Bloomberg) -- A U.S. criminal securities fraud case against Maksim Bakiyev, the son of former Kyrgyzstan leader Kurmanbek Bakiyev, has been dismissed, prosecutors said, without giving an explanation.
The U.S. had sought to extradite the younger Bakiyev, 35, from the U.K. to face trial on charges of conspiracy to commit securities fraud and obstruction of justice. Dismissal of the case was confirmed today by Robert Nardoza, a spokesman for U.S. Attorney Loretta Lynch in Brooklyn, New York. He declined to comment further.
Maksim Bakiyev, who headed a development agency in Kyrgyzstan, has been living in the U.K. since fleeing the Central Asian nation after an April 2010 coup. An extradition hearing was to begin May 13 in the U.K. It is no longer required, said Tim McAtackney, a spokesman for the U.K.’s Crown Prosecution Service.
Maksim Bakiyev wasn’t named publicly in U.S. court filings. In April 2012, federal prosecutors in Brooklyn accused U.K. businessman Taiyyib Ali Munir of aiding a former “high-level government official” of an unidentified Central Asian country in an insider-trading scheme from 2010 to 2011.
Munir pleaded guilty and was sentenced in January by U.S. District Judge Jack Weinstein to time served, which was less than a month in U.S. custody, on a conspiracy charge.
Maksim Bakiyev and his father have both been accused of corruption by Kyrgyzstan’s current government. Maksim Bakiyev faces allegations in a Kyrgyzstan court that he abused his governmental post, misused as much as $300 million in state funds, and engaged in money laundering, according to a spokesman for current Kyrgyzstan President Almazbek Atambayev.
In December, the spokesman, Kadyr Toktogulov, said his country was providing information to American officials as part of the U.S. extradition effort. Toktogulov didn’t immediately respond to an e-mail today seeking comment on the dismissed case in the U.S.
Munir was arrested in July and initially accused in a criminal complaint of passing inside tips about about Global Industries Ltd., Tyco International Ltd. and InterMune Inc. as part of the scheme.
During his plea hearing in October, he admitted to offering to sell confidential earnings reports about unspecified companies to a government informant. Ultimately, he didn’t provide the reports, prosecutors said in a memorandum filed Jan. 3.
A lawyer for Maksim Bakiyev in the U.K., Michael O’Kane, didn’t immediately respond to a phone call seeking comment. A lawyer for Munir, Pamela Johnston, declined to comment.
The Munir case is U.S. v. Munir, 1:12-cr-00648, U.S. District Court, Eastern District of New York (Brooklyn).
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