Israel rocked by alleged £45 million diamond fraud

[Kurgen]

carrying out a £45 million diamond fraud that industry figures described as "phenomenal in scope".

Hanan Abramovich is alleged to have taken millions in diamonds from 12 Israeli firms on the promise of paying them but never handing over the money.

The discovery of the alleged fraud has rocked Israel's diamond industry, which one of the world's largest, and raised fears that some of the firms may be forced into bankruptcy.

"Never in the Diamond Exchange's history have we seen such extensive fraud," said Eli Avidar, director of the Israel Diamond Exchange.

"Abramovich abused the ethical code of our members, and the trust they share, which allows them to close deals with a handshake. Really, the only word to describe such a person is 'crook.'" A lawyer for Mr Abramovich denied any wrongdoing and said his client "acted within acceptable business practices, as we are sure the investigation will prove".

He was arrested on Tuesday and some members of his family have also been reportedly questioned about the case.

Jews have been deeply involved in the diamond business dating back 500 years to their dominance of the diamond markets in Antwerp.

Today, Israel is home to the world's largest diamond exchange, which is headquartered in modern skyscrapers in the city of Ramat Gan. More than 1,000 diamond firms operate within it.

Despite the industry's sophisticated technology many trades are still made fairly informally between merchants who have known each other for decades.

Mr Abramovich is alleged to have taken advantage of that trust and taken diamonds on credit without being able to pay for them.

Some of the firms that sold diamonds to Mr Abramovich have reportedly already spent the incoming money, leaving them exposed and in danger of a potential collapse.

Suspicions were raised after he failed to appear at a meeting with his creditors after several months of non-payments.

Posters with his photographs of his face were printed out and plastered across the walls of the exchange warning merchants to contact authorities if they had dealings with him.

Israel rocked by alleged £45 million diamond fraud

[wasabi]

Diamonds actually have little value, it's clever marketing that makes them expensive

[harrybarracuda]

Fucking hell, it's not often the blue suede shoes lose money on diamonds.

[billy the kid]

"phenomenal in scope".

Jees they do squeal.

[snakeeyes]

^
Like PIGS ,

[Cujo]

Good stuff.

[PeeCoffee]

A crook is a crook...whether a banker, a lawyer, a politician, a business-person or a diamond merchant.

Not a bad heist based on a handshake. Peanuts compared to the Federal Reserve bailout of Lehman with taxpayer dollars.