IDE Vice President Arrested in Hungary
October 12, 03
Israel Diamond Exchange Vice President Avraham ‘Bumi’ Traub has been arrested in Hungary at the request of Russian authorities for alleged diamond related fraud.
Traub was arrested Wednesday by the Hungarian police at the request of Russian authorities on charges of a diamond fraud. It is not clear at this point if the charges are over actions that took place several years ago or over recent purchases of rough diamonds. Traub, like many other diamantaires, buys rough diamonds from Russian sources.
Hungarian authorities are expected to transfer Traub into Russian hands in the near future, however in the mean time Israeli diamantaires are trying to see how they could possibly help him out.
Traub’s son and business partner Eli was not immediately available to comment.
This is not the first time Russian authorities seek Israelis in connection to rough diamond exports. Two years ago three Israelis were arrested on their way to the airport for smuggling rough diamonds out of the country and about a year ago another was arrested and remains in custody.
Alrosa, the Russian diamond mining monopoly sells a portion of its diamonds to local manufacturers, which in turn are allowed to export polished diamonds, but not rough. The source of the diamonds in question is not clear, however it is known that some diamond manufacturers cut rough, and export it as ‘processed’.