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Israeli diamond dealer arrested amid huge fraud probe | Israeli diamond dealer arrested amid huge fraud probe |
(about 7 hours later) | |
An Israeli diamond dealer has been arrested on suspicion of embezzlement amid a fraud investigation that could involve $65m (£45m). | An Israeli diamond dealer has been arrested on suspicion of embezzlement amid a fraud investigation that could involve $65m (£45m). |
Hanan Abramovich is accused of failing to pay for gems taken from 12 leading diamond dealers, Israeli media said. | Hanan Abramovich is accused of failing to pay for gems taken from 12 leading diamond dealers, Israeli media said. |
The arrest of Mr Abramovich by Israeli police followed a complaint by the Israel Diamond Exchange (IDE), the world's largest. | The arrest of Mr Abramovich by Israeli police followed a complaint by the Israel Diamond Exchange (IDE), the world's largest. |
There are fears several diamond firms could face bankruptcy. | There are fears several diamond firms could face bankruptcy. |
Members of the exchange were encouraged to come forward with information. | Members of the exchange were encouraged to come forward with information. |
'Zero tolerance' | 'Zero tolerance' |
Identifying Mr Abramovich, a police spokeswoman said: "The suspect is under arrest and we are currently questioning him on suspicion of embezzlement." | Identifying Mr Abramovich, a police spokeswoman said: "The suspect is under arrest and we are currently questioning him on suspicion of embezzlement." |
Adi Carmeli, Mr Abramovich's lawyer, confirmed his client had been arrested but denied he was involved in any criminal activity. | Adi Carmeli, Mr Abramovich's lawyer, confirmed his client had been arrested but denied he was involved in any criminal activity. |
IDE managing director Eli Avidar accused Mr Abramovich of stringing along diamond firms to whom he owed millions of dollars. | IDE managing director Eli Avidar accused Mr Abramovich of stringing along diamond firms to whom he owed millions of dollars. |
Mr Avidar said the exchange's board of directors would "show zero-tolerance to anyone who harmed other members of the exchange". | |
Mr Abramovich appeared in court on Wednesday, where his arrest was reportedly extended for two days. | Mr Abramovich appeared in court on Wednesday, where his arrest was reportedly extended for two days. |
Israel's diamond industry dates back to the 1930s and now boasts more than 1,000 trading firms based in the city of Ramat Gan. | Israel's diamond industry dates back to the 1930s and now boasts more than 1,000 trading firms based in the city of Ramat Gan. |
Diamond deals are traditionally clinched with a handshake, according to the Israel Diamond Institute, and with the two Hebrew words "mazal u'bracha," meaning may the deal be with luck and blessings. |
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