Zambian Court Orders Liquidation of Leviev Company – Frango Finance Ltd. and Gemcanton Investments Holdings

Zambia Court Orders Liquidation of Billionaire Leviev’s Company

A Zambian court has ordered the liquidation of a company owned by Israeli diamond billionaire Lev Leviev as the fight with his local partner in an emerald mine rages on.

The Zambian High Court placed Frango Finance Ltd., which owns half of Gemcanton Investments Holdings, in compulsory liquidation after receiving a petition on Feb. 18, according to a statement published in the Daily Nation newspaper.

LEVIEV Store Opening

Lev Leviev

Photographer: Scott Wintrow/Getty Images

Leviev will contest the order, said his lawyer, Dickson Jere. “We have been served with an order which was issued without hearing my client,” he said in a text message. “We will be going to challenge it in court as Frango is not even a Zambian-registered company.”

Leviev and Abdoulaye Ndiaye became embroiled in legal battles soon after the diamond magnate bought half of what was previously known as the Grizzly emerald mine from Ndiaye in Zambia’s Copperbelt province in 2015.


More Dan Gertler and Glencore – WSJ


LostMessiah – The Gertler, Fleurette, Katumba, Glencore…. Reported Long Ago

To our faithful readers and to the journalists and law enforcement who read our pages: 

We uncovered the abuses portrayed long ago. For a look into our investigations into Dan Gertler, Fleurette,  the death of Katumba, Glencore, the various violations and other unsavory practices, please go into our search bar and search the names. We reported about these issues nearly 2 years ago.


Glencore-Controlled Miner to Be Fined by Canadian Authorities Over Congo Ops

Regulator expected to allege Katanga Mining hid risks of doing business with Israeli diamond merchant closely linked to Congolese President Joseph Kabila

Glencore GLNCY -3.44% PLC-controlled mining company and some of its current and former directors and executives have agreed to pay more than $22 million to settle Canadian allegations that they hid the risks of doing business with a controversial Israeli businessman closely linked to Congolese President Joseph Kabila, according to a person familiar with the matter.

The expected settlement between the Ontario Securities Commission, Canada’s biggest stock-market regulator, and Toronto-listed Katanga Mining Ltd. KAT -1.56% is related to the company’s business activities in Congo between 2014 and 2016, the person said.

The regulator is expected to name several of Katanga’s current and former executives and directors in the settlement and will focus, at least in part, on Katanga’s longstanding ties with Dan Gertler, the Israeli businessman who first invested in Katanga alongside Glencore in 2008, the person said.

The OSC is also expected to allege that Katanga lacked proper internal financial controls, leading it to overstate copper production and understate mining costs, potentially inflating the miner’s performance, according to the person familiar with the matter.

Glencore owns about 86% of Katanga. In 2017, Glencore purchased Mr. Gertler’s stakes in Katanga and another giant copper mine in Congo.

The settlement is expected to name Glencore’s former representatives on Katanga’s board, according to this person. Those individuals include Aristotelis Mistakidis, one of Glencore’s most senior executives and two other Glencore executives, Liam Gallagher and Tim Henderson. All three stepped down from the board in November 2017 after Glencore and Katanga confirmed the Canadian investigation. The probe was first reported by The Wall Street Journal.

Katanga said at the time it was shuffling the board to address weaknesses in its controls over financial reporting. Earlier this month, Glencore said Mr. Mistakidis would retire at year-end.

Katanga and the named individuals have agreed to jointly pay a fine of more than 30 million Canadian dollars ($22 million) to settle the allegations, according to the person.

The people named in the OSC settlement will be banned for certain periods of time from acting as a director or officer of a publicly traded company listed in Ontario, the person said.

The settlement is expected to be announced as early as this week. A panel of the OSC must approve any settlement agreement at a public hearing for it to take effect.

It’s unclear whether Katanga and the individuals admit to wrongdoing in the settlement.

Katanga Chief Executive Johnny Blizzard has also agreed to resign as part of the settlement, the person said.

Katanga’s settlement represents another reputational hit for Glencore and its operations in Africa. In July, the London-listed mining giant said it had received a subpoena from the U.S. Justice Department demanding records related to its compliance with American antibribery and money-laundering laws in Congo, Nigeria and Venezuela.

The Wall Street Journal reported that a focus of the probe is Glencore’s ties to Mr. Gertler.

Mr. Gertler in recent years has become a lightning rod for controversy. In 2016, he was a central figure in a $412 million settlement between the U.S. Justice Department and the Securities and Exchange Commission with New York hedge fund Och-Ziff Capital Management Group LLC. A businessman people familiar with the matter said is Mr. Gertler paid more than $100 million in bribes to Congolese government officials, including Mr. Kabila, to get beneficial terms for deals in the Central African country, the DOJ and SEC alleged.

A spokesman for Fleurette Group, Mr. Gertler’s main company in Congo, said it “has always acted appropriately and with integrity in the DRC. Nothing has ever been proven against the company or its executives in a court of law.”

A year ago the U.S. Treasury Department sanctioned Mr. Gertler, alleging he traded on a friendship with Mr. Kabila to amass a fortune through “opaque and corrupt” deals on behalf of multinational companies seeking to do business in Congo. Mr. Gertler has denied wrongdoing and has declined to comment on the Treasury allegations and Justice Department investigation.

The OSC is expected to allege that Katanga breached Canadian securities law by not disclosing the risks it faced by relying on Mr. Gertler to maintain relationships with Mr. Kabila, Congo’s president, according to the person familiar with the matter.

To continue reading click here.

Canadian regulator to fine Glencore-controlled miner over Congo: WSJ — peoples trust toronto December 16, 2018 (Reuters) – A Glencore PLC-controlled mining company and some of its current and former executives have agreed to pay more than $22 million to settle Canadian allegations they hid the risks of doing business with an Israeli man close to Congolese President Joseph Kabila, the Wall Street Journal reported on Sunday. […]

via Canadian regulator to fine Glencore-controlled miner over Congo: WSJ — peoples trust toronto


See Dan Gertler on LostMessiah

Leviev’s Gemcanton Mine – Where is Government Intervention?

Government should review Levieve’s partnership at Gemcanton mine


The continued diamond smuggling investigation of the Israeli-Russian Diamond Baron Lev Leviev by the Israeli authorities should make the Government of the Republic of Zambia also institute serious investigation and review his investment at Gemcanton emerald mine formerly Grizzly Mining Ltd on the copperbelt.

Mr El Nefussy a representative of Levi Levieve was deported by the Government of the Republic of Zambia in 2017 for purportedly engaging in serious human rights abuses at Gemcanton mine. Unfortunately, no serious arrests were made to make him unwearable to the law for subjecting the poor Zambians to inhuman torture at Gemcanton before a deportation decision could be arrived at. Government opted to deport him, and that decision has not set any disciplinary precedence to would be offenders.

To date,the issue of torture and human rights abuses at Gemcanton by Levi Levieve’s team has not been adequately addressed.

Many of the victims complain that government has not punished the offenders and feel such a precedence would escalate related acts in future. Zambia is among the African countries where the world diamond baron Leviev has massively invested in emerald mining with very little corporate social responsibility (CSO) going to the poor people of Chief Nkana and Lumpuma area where the emerald mine sits as was the case when the investment was wholly owned by Abdoulaye Ndyaye.

Apart from a lack of CSR, Zambia has been a victim of dishonest by many of the foreign investors who come in and ignore the plight of the local people.
The question of Zambians benefiting from some of the investors coming in the country is becoming a thorny one, as locals seem not to benefit. Whether or not some investors are worth hosting in Zambia has become a National debate. People are wondering whether some companies are genuinely investors or coming in to exploit the country’s resources.

Very serious government’s like Israel have investigated some diamond tycoons like Leviev with very little to leave unturned. The Zambian government , like Israeli government should consider thoroughly investigating Levi Levieve’s investment in Zambia.

What is worrying is a lack CSR at Gemcanton from the time Leveiev came on board as a share holder yet the company is making millions of dollars.
Additionally, the restrictions of the local people to the Gemcanton dumpsite has adversely affected the poor Zambians who were known to survive on such dumpsites at the time Gemcanton was called Grizzly Mines under Abdalaye Ndyaye .

It is the local people’s considered view that the speed at which government has let go of the black mountain in Kitwe for the benefits of the local people is the same speed at which government should influence Gemcanton mines management to allow the local people who are currently receiving nothing from Gemcanton under Leviev .

When Honorable Bowman Lusambo was Copperbelt Minister, Gemcanton was restrained and started making headways towards restoring CSR, but upon his transfer to Lusaka, many of the strides made at Gemcanton were buried to the disadvantage of the locals.

There is fear that if government does review Leviev’s investments at Gemcanton, the people of Zambia will benefit nothing from the emerald mine investment.

While government is seriously looking at the empowerment of the local people in mining industries , it is the people’s considered view that the shares of Leviev at Gemcanton are reviewed to benefit the lower people .

Lack of regard for the local people in the area of Corporate Social Responsibility and unfair trading habits have made different stakeholders wonder whether there is serious scrutiny of some foreign investors’ investment record before they can be allowed to invest in Zambia by the powers that be.

Does Leviev Diminish the Reputation of the Diamond Industry?

Leviev Case Another Blow To Diamond Industry’s Reputation

November 08, 18 by Albert Robinson

For the diamond industry in general – and the heads of the bourses and the trade organizations in particular – the news this week regarding six of diamond tycoon Lev Leviev’s relatives and employees being arrested in connection with diamond smuggling allegations is exactly the kind of report that keeps them up at night.

The industry endlessly discusses the importance of showing that it is clean and operating transparently which, in the vast majority of cases, it is. But the idea that diamonds are being moved around undeclared and sold without passing through the correct channels and without customs duties and other taxes being paid is, unfortunately, one that appears to be fairly widely held by the general public.

In a very unscientific survey, my neighbors, family and friends seemed completely unsurprised, as if to say, that’s what we assumed the business was all about. My responses were greeted with knowing smiles as if to say: nice try but we’re not buying it.

Needless to say, the news was all over the Israeli media, with Reuters in Israel also reporting the case for their clients all around the world.

For anyone who hasn’t been following the reports, Leviev’s son Zevulun and brother Moshe are accused of being involved in a smuggling operation that led to about 300 million shekels ($80 million) worth of diamonds being illegally brought into Israel since 2010.

Lawyers for Zevulun Leviev said the allegations against him were “baseless” and his arrest appeared to be a tactic to “illegitimately pressure his father”. Meanwhile, Moshe Leviev’s lawyer denied in court that his client had any connection to the allegations.

Meanwhile, Lev Leviev himself is wanted for questioning on suspicion of involvement in the diamond smuggling, but he currently lives in Russia and reportedly does not intend to come to Israel any time soon for questioning. Reports say that investigators believe Leviev fled to Russia from London, where he has lived in recent years, after learning of the investigation against him. Lev Leviev denies the accusations and suspicions against him.

The reports are all the more astonishing given Leviev’s meteoric career He started out at the age of 15 as a diamond polisher and built an extraordinary empire built on the diamond business and real estate. The global financial crisis of 2008 struck a heavy blow to his businesses, however.

It seems this story has a way to go yet. As Israeli daily Ha’aretz wrote: “Why his [Leviev’s] group might be involved in smuggling diamonds in the first place is unclear. A diamond company’s tax is based on sales turnover, not profit. Therefore, there is no tax advertising [advantage] in smuggling diamonds into Israel unless they were then smuggled back out, and the sale was registered in some third country with lower tax rates (such as Belgium or Dubai).

“One reason to smuggle could be that the stones were of dubious origin; either their seller had no license to market them; or they were mined illegally, for instance. In any case, bringing them into Israel without declaring them is illegal.

“Another unclear aspect is how this case will affect Israel’s diamond industry. On the one hand, Leviev is one of the biggest rough diamond importers in the country; his businesses supply work to dozens of other companies that polish and market the stones through the Ramat Gan Diamond Exchange. These companies employ hundreds of people. If his business hurts, so may dozens more. And this is not a good time for the Israeli diamond business: demand has been tanking and profits are down.”

Indeed, one can imagine there was a great deal of anger at the Israel Diamond Exchange at the reports which, in one fell swoop, might have caused inestimable damage to the country’s diamond business. And all the more unfair given the IDE’s serious work over the past few years to rehabilitate its image after the discovery of the operation of a so-called pirate bank from offices in the bourse half a dozen years ago.

Among the genuine and sincere efforts it has made to show that the diamond trade is composed of honest, hard-working diamantaires was the creation of a Code of Ethics signed just last year which seeks to place the Israeli exchange at the forefront of global practices in terms of proper administration and transparency.

The Code of Ethics outlines the principles by which members of the exchange operate, including responsibility, trust, fairness, integrity, expertise, tradition, business pragmatism and more, all in the framework of human dignity and the rule of law.

But, as the Indian diamond industry discovered at the start of this year, the work of thousands of companies and the livelihoods of tens of thousands of people, or more, can be affected by the selfish and egocentric actions of a few individuals.

LLD DIAMOND USA, 580 Fifth Avenue, New York, LEVIEV’S “Sources of Rough Goods”


LLD Diamonds has been supplying high quality diamonds to polishers, cutters and jewelers over the past three decades. Founded by renowned diamantaire, businessman and philanthropist Lev Leviev, LLD Diamonds USA is a member of the prestigious Leviev Group of Companies (LGC) and – uniquely among manufacturers – operates at every level of the diamond pipeline. With more than 30 years of experience in the diamond industry, is the world’s largest privately held diamond manufacturer. The firm is also the world’s largest diamond and cutting group and is entirely independent of external suppliers since the company has its own widespread sources of rough goods.


LLD diamond’s source of rough straight from the mines, provides access to top quality rough. Our industry largest in-house cutting and polishing capabilities empower us to distribute finest diamonds and produce exquisite jewelry to the high-end jewelry manufacturers and retailers. We are passionate about diamonds, and this passion is at the heart of everything we do. We are not here simply to sell polished diamonds as just another product. Many outstanding diamonds pass through our offices on a daily basis, but we still see one as an exquisite gemstone on its way to bringing years of pleasure to its ultimate owner both of its exceptional physical beauty and for the love and commitment of a long-term relationship that it represents. LLD Diamonds, recognized as an international diamond industry leader, has been awarded multiple industry achievements and accolades, including Israel’s “Outstanding Exporter” government award.


At LLD diamonds, we manufacture superior quality polished diamonds and are a source of high-level polished stones for clients worldwide. Our diamond industry knowledge together with our widespread market intelligence enables us to identify changing trends in different countries regarding cut, color and clarity and enabling us to provide customers with a range of goods. Our highly skilled and experienced craftsmen know how to bring out a diamond’s clarity and show the maximum fire and brilliance that a diamond possesses. We aim to consistently supply high-quality polished diamonds on time and precisely as requested. With our main sales office in the heart of the Diamond District at 580 Fifth Avenue, New York among other strategic locations worldwide, LLD is your “Natural Choice” of partner, no matter your size or needs.

A [BLOOD] Diamond of a Jewel Connection to Jared Kushner and Putin – Repeat and Rewind….


The highlighted portions in red, we covered a while back….. Now, if only someone will look at China Sonongol, the Queensbury Group, Africa Israel and Platinum Partners… and the closure of the Lincoln Tunnel. 




Billionaire With Ties to Jared Kushner and Putin

Leviev is best known for having cracked the world diamond market monopoly of the De Beers cartel in the 1980s, and for real estate holdings and construction deals from Wall Street to the West Bank

If the name of Lev Leviev, which has come up in recent reports about the investigations of Jared Kushner’s Russian connections, rings familiar, it’s not without good reason. Leviev, who was born in the Soviet Uzbek Republic, and immigrated to Israel at age 14, has been one of the world’s most successful and diversified businessmen for years. He is best known for having cracked the monopoly over the world’s diamond market held by the De Beers cartel back in the 1980s, and for real estate holdings and construction deals in locations ranging from Wall Street to the West Bank. With the encouragement of the Lubavitcher Rebbe, Menachem Mendel Schneersohn, in the late 1980s, Leviev had the impeccable timing to begin doing business in the Soviet Union shortly before it crumbled, and he took advantage of that political watershed to become a major player in the Wild West that was the Russian economy in the succeeding decades. At the same time, he became a close friend of Vladimir Putin and also a Jewish philanthropist unequaled since the legendary Moses Montefiore.

Unlike Kushner and his father-in-law, President Donald Trump, Leviev was not born to wealth, but apparently from a young age, he possessed a strong urge to attain it. Born on July 30, 1956, in the Uzbeki capital of Tashkent, Leviev grew up in a traditional Bukharian-Jewish family that immigrated to Israel in 1971. Clever rather than studious, Leviev left his Kiryat Malachi yeshiva after just two months, and got a job in a diamond-polishing shop, where, through persistence, he had his senior colleagues teach him all 11 stages of diamond cutting, something a single individual does not generally have the opportunity to master. He was supposedly aided in the delicate art of diamond cutting by early training from his father in ritual circumcision.

Highly ambitious, Leviev began making his way up quickly in the De Beers hierarchy, but that wasn’t good enough. What he really wanted was to break the cartel’s stranglehold on the world’s diamond market. This he did by cutting deals at strategic moments with the governments of both Angola and Russia, both with vast unmined diamond reserves.

Having grown up in the Soviet Union, Leviev was trepidatious about returning to its successor states to do business, but he was encouraged to do just that during a late 1980s visit with the Lubavitcher Rebbe, who also warned him not to forget to help his fellow Jews. Long drawn to Chabad, Leviev then proceeded to become one of its most generous supporters; in a 2007 interview with The New York Times, he did not dispute that he had contributed some $50 million to Chabad educational and welfare institutions across the former Soviet Union.

At the same time, Leviev became the world’s biggest cutter and polisher of diamonds. He accomplished this as successfully as he did, wrote Zev Chafets in that 2007 Times article, in part because of his businesses’ “vertical integration. He mines the diamonds in Angola, Namibia and Russia, cuts and polishes them, ships them and sells them, wholesale and retail.” 

In 1996, Leviev picked up the Africa-Israel holding company, whose fields included real estate and construction, from Bank Leumi when the bank was ordered by a court to divest of its non-financial businesses. The price: $400 million. By 2007, its estimated value was $7 billion. The following year, however, Africa-Israel Investments’ debt was estimated at some $5.5 billion, and it began to shed properties.

Suffice it to say that Leviev has retained control of Africa-Israel, whose holdings today include energy, steel production, hotels, and a number of fashion designers. Along the way, he has been criticized, and his businesses boycotted, attacked for massive construction projects in several different West Bank settlements; his bid a decade ago to become the operator of Israel’s first privately owned prison was stymied by the Supreme Court; and he has been dogged by accusations of the worst types of abuse at his mines in Angola.

This week’s news stories don’t link Leviev with specific accusations; rather, they indicate a number of business and social relationships that connect him to Vladimir Putin and Kremlin-related businesses, as well as to the Trump Organization. Leviev was a business partner of Prevezon Holdings, the Russian firm that was accused of money-laundering, and that, after it was represented by Natalia Veselnitskaya, got off with a $6 million slap on the wrist. The Prevezon scam had been exposed in 2009 by Russian whistleblower accountant Sergei Magnitsky, who a short time later died in a Moscow prison under suspicious conditions. It was his death that led to the American passage of the sanctions – in the form of the Magnitsky Act – that Veselnitskaya said she was lobbying to have cancelled when she met with Donald Trump, Jr., Jared Kushner and others at Trump Tower last summer. It was to avenge the Magnitsky sanctions that Putin in 2012 abruptly prohibited American citizens from adopting any more children from Russia; readers will remember that Trump has said that “adoptions” was the subject of his off-the-record second conversation with Putin at the G-20 meeting in Hamburg two weeks ago. Now, the Justice Department’s decision to settle with Prevezon last May is likely to come under renewed scrutiny by investigators in the U.S.

The Guardian this week reported on several joint business ventures that Prevezon undertook with Leviev’s Africa-Israel Investments, both in the U.S. and Europe, and which were latr alleged to be vehicles for money-laundering by Prevezon.

In 2015, the Kushner real-estate company purchased four floors of the old New York Times building, on West 43rd St., for $295 million. The seller was Lev Leviev’s U.S. branch of Africa-Israel Investments, in partnership with Five Mile Capital. According to the Washington Post, Kushner took a loan from Deutsche Bank in October 2016 – a month before Election Day – to refinance the Manhattan property, which was now valued at $74 million above what he paid for it a year earlier.

Deutsche Bank has been of interest to a variety of different federal investigators for its involvement in a Russian money-laundering scheme, and it settled at least one related case with the U.S. Federal Reserve two months ago.