Lazare Kaplan International (LKI) has sued KBC Bank and its subsidiary, Antwerp Diamond Bank (ADB), for allegedly stealing US$135 million worth of its diamond sales.
According to the lawsuit, filed in a New York federal court, the New York-based diamond company alleges that the two Belgian banks funneled the proceeds through numerous shell companies across Europe, the Middle East and Asia, thereby causing “catastrophic damage” to LKI’s business and property, the Financial Times reports. The claim accuses the banks of working “in concert” with diamond dealer Erez Daleyot, owner of D.D. Manufacturing, who, LKI asserts, either controlled or was associated with the shell companies involved in the alleged theft.
Without the $135 million in proceeds, LKI claims that it failed to meet financial reporting requirements resulting in its shares being delisted from the American Stock Exchange.
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