80 individuals hoping to buy apartments. They claimed that contractual obligations were not fulfilled and the funds were illegally diverted by Polonsky to other Mirax Group entities. In June 2013, the MDV charged Polonsky in absentia with embezzlement. Polonsky strongly denies any accusations of wrongdoing and has expressed his willingness to be investigated as he believes that "no legal offense has been committed." According to the Russian publication Novaya Gazeta, the Kutuzovskaya Mile issue has become a "bottomless pit of internet folklore". Polonsky maintains that he transferred 2.5 billion rubles to FTsSR prior to the termination of their contract, which would have been more than sufficient to meet the contractual obligations entered into by his companies. He added that the remaining funds had not been diverted out of the project and had stayed within Mirax Group. In an open letter dated 2 October 2013 Polonsky admitted to "incompetent management" and expressed his willingness to pay $12 million in compensation to his creditors. He also sought to assure all investors that their apartments would be completed. The embezzlement charges, Polonsky believes, are part of an attempt by FTsSR and the Moscow government to take the Kutuzovskaya project away from him and hand control to Arkady Rotenberg, a rival property developer with close ties to the Russian president Vladimir Putin Arrest in Cambodia In late 2012, Sergei Polonsky and two other Russians – Konstantin Baglay and Alexander Karachinsky – were arrested by the Cambodian police. They were suspected of unlawfully depriving several Cambodian seamen of their liberty. Polonsky protested at the arrest and the conditions of his incarceration, writing on his blog "After being detained, none of the detainees, including myself, was allowed to make a telephone call, we were denied our right to a counsel for legal assistance and to an interpreter, although the law of Cambodia provides for these rights. At present, they are holding me in a cell without an air conditioner at a temperature exceeding +35 degrees Celsius in the shade and with horrible sanitary conditions. According to the Cambodian counsels and interpreters, they regularly receive threats and warnings not to work with me from unknown people." He also made several petitions to the Russian Ministry of Foreign Affairs; however, they failed to take any steps to help. On 7 January 2013, Polonsky wrote a letter to the king of Cambodia to apologize to the Cambodian people for