Nate Raymond

BOSTON, (Reuters) – A U.S. prosecution argued Wednesday that a Russian businessman who was accused of insider trading by hacking corporate information could use his wealth to escape the United States if he is granted bail.

Vladislav Klyushin is the owner of an IT company that has ties with Russia. He wanted to be freed on a $2.5million bond, and to remain in Boston under house arrest after his extradition to Switzerland.

At Marianne Bowler’s hearing, the Assistant U.S. Lawyer Seth Kosto claimed that Klyushin was able to walk away from the proposal bond. The cash-secured bond included a London apartment and cash. Bowler didn’t make an immediate ruling.

Klyushin’s real wealth isn’t known, however Kosto stated that he owned $4 million of yachts, had $3 million worth in cash, and was listed on a Danish trading bank from which $8.9million was transferred.

Klyushin, according to the prosecution, used the account while trading $82.5 million on earnings reports yet unannounced. The hacking of vendor networks that allow companies to file reports to securities regulators allowed them access to the accounts.

Kosto stated that Klyushin was 41 and “not just any Russian citizen.”

Klyushin, he said, was presented with a medal of honour bearing the signature of Russian President Vladimir Putin. His company M-13 also employed a former military intelligence agent who had been involved in the hacking.

Kosto refers to Ivan Yermakov who was arrested by the U.S. Government on 2018 allegations that he, along with other intelligence officers, carried out hacking plans to disrupt the 2016 election and attack anti-doping organizations.

Kosto stated, “That implies (Klyushin), has connections that would facilite his departure.”

Maksim Nemtsev Maksim Klyushin, Maksim’s lawyer, countered that many client assets had been frozen and that his client did not intend to flee.

Nemtsev declared that Klyushin is accused of various crimes against which he intends to fully defend himself. Nemtsev stated in an email, that Klyushin would plead not guilty at Jan. 3rd hearing.