Andrei (or Andrew) Mogilyansky, 38, of Richboro, Pennsylvania, whose personal wealth is estimated at $10 million, was granted house arrest on Wednesday, but the ruling was overturned following an appeal by the prosecution over fears that Mogilyansky's assets, language skills and global connections meant he was a flight risk.
"Obviously, he does have family here and ties to the community, but certainly with his wealth he could take his family and travel outside the U.S.," District Judge Mary McLaughlin said during the prosecution appeal.
Mogilyansky, who has both Russian and U.S. citizenship, was charged last week with organizing an online child prostitution ring in the Russian capital that involved bringing over orphaned girls from St. Petersburg from 2002 to 2004 together with four other men, who were tried and convicted in Russia in 2004.
"He took those girls to his apartment in St. Petersburg, where he molested them. He molested them as a way of introducing them to his child prostitution business. After he molested these girls, he sent them to Moscow to work as prostitutes for him," acting U.S. attorney, Laurie Magid, said earlier.
Mogilyansky, a Columbia University graduate, owns a car export business based in suburban Philadelphia and other businesses that provide a salary of $750,000 a year or more.
The businessman's lawyer, George Newman, has denied all the allegations. "We deny all allegations and we are ready to respond to them in court," Newman told reporters.
Even though Mogilyansky is in jail awaiting trial, prosecutors are still continuing their investigation. It has not been ruled out that Mogilyansky also had associates in the U.S.
Mogilyansky has been indicted with four charges. Each charge carries a maximum prison sentence of up to 30 years behind bars and a $1 million fine.
