 Two Israeli diamond dealers were arrested after claiming that a parcel of diamonds worth over one million dollars was stolen from them en route to London. The men, Jacob and Gil Eizeman—the father-and-son team who run Jacob Eizeman Diamonds—are thought to have claimed the theft in order to collect insurance money and begin to pay back the over $1.2 million dollars they owe to various companies, according to local press. Avi Paz, President of the Israel Diamond Exchange, called police to confront the men. This is an unprecedented move for the IDE, who usually deals with such claims through internal arbitration. Many diamantaires questioned the credibility of the Eizemans’ claim, particularly in light of their huge debt to other diamond companies. Paz posted a statement on the Israel Diamond Exchange website, stating that “We intend to operate strictly against anyone who does not honor their obligations to other companies, and will use any means at our disposal to ensure this, including involving law enforcement”. This is an attempt to stabilize the diamond trade, which has experienced a downturn in the past several months. Although the IDE policies have not changed, they are being more actively enforced, in light of the recession and the resulting debts of diamond dealers worldwide. The IDE is keeping a closer eye on its exchange members’ debt obligations, after several incidents were reported in which diamond companies reached private arrangements to return goods rather than making payments. These arrangements, according to IDE policy, are to be made collectively and directly reported to the IDE. As of now, the investigation into the matter is ongoing.
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