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Hungarian Diplomats In Custody In Fraud Case

BUDAPEST, Hungary (AP) - Prosecutors say three officials, including a former Hungarian ambassador to Russia, have been taken into custody, suspected of taking part in the sale of Hungary's commercial office in Moscow at below its market value.

Prosecutor Imre Keresztes said Tuesday in a statement that the unauthorized transaction carried in 2008 allegedly shortchanged Hungary by nearly 7 billion forints (¿26 million, $35.5 million), including losses stemming from ill-timed currency exchanges.

The suspects were identified as former ambassador Arpad Szekely, former Foreign Ministry state secretary Marta Fekszi Horvath and Miklos Tatrai, ex-CEO of Hungary's national asset manager.