Subsequently, in September 2012, the Russian Ministry of Internal Affairs (MVD) began investigating Polonsky in relation to the Kutuzovskaya Mile project. Prosecutors claimed that between 2007 and 2008, Polonsky, through Mirax Group subsidiaries Avanta and Concordia Asset Management, took 5.78 billion rubles in down payments from 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 Charged in Absentia With $180M Embezzlement The Moscow Time, 17 June 2013 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."Realty developer Polonsky accused of fraud, says is innocent Interfax, 13 November 2013
