Another Scandal rocks Israel’s diamond exchange

RT –  Israeli police arrested a diamond dealer on Wednesday suspected of taking part in a $65 million fraud at the country’s diamond exchange. Some of his family members may also be involved in the embezzlement.

The suspect was identified as a well-known Israeli dealer Hanan Abramovich and head of Hanan Abramovich Diamonds.

“The suspect is under arrest and we are currently questioning him on suspicion of embezzlement,” said a police spokeswoman as cited by Reuters.

The investigation was started after a number of dealers from the Israel Diamond Exchange (IDE) complained the Abramovich firm owed them “tens of millions of dollars” for gems it purchased but never paid for.

Abramovich allegedly had taken gems worth $60-65 million from 12 leading diamond dealers without paying for them or giving them back. There is concern that some of the dealers will be forced into bankruptcy, media reported.

Abramovich’s lawyer denied his client’s connection to illegal activities and insisted the dealer’s business had simply failed.

“We are talking about a huge deception by a man who planned it a long time in advance,” the managing director of the Israel Diamond Exchange Eli Avidar told The Times of Israel newspaper. “He took advantage of the ethical code of the exchange members.”

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