Israeli Diamond Smuggler Expelled from Israeli & Global Diamond Exchanges

(IDEX Online News) - The Israel Diamond Exchange (IDE) decided yesterday to expel David Vardi for his alleged involvement in an attempt to smuggle $160,000 worth of rough diamonds from Zimbabwe into Israel last Wednesday.

IDE President Avi Paz, who also serves as president of the World Federation of the Diamond Bourses (WFDB), said that expulsion was conveyed to all other WFDB member-exchanges. This means that Vardi will not be allowed to trade diamonds at those exchanges.

Some exchanges have a ‘wall of shame’ on which such announcements are posted with pictures of the involved people. This is done to ensure that exchange members are notified of bans or other problematic issues.

“The expulsion is not limited by time,” Paz told IDEX Online. “There is no forum for an appeal either.”

Currently in the balance is Vardi’s diamond trading license, which is in the hands of the Diamond Controller. If the controller decides to revoke the license, Vardi will not be allowed to trade in diamonds in Israel.

Vardi was arrested on Wednesday after a courier was picked at random by custom officials at Ben Gurion Airport. After his arrest, the man admitted to bringing the diamonds from Zimbabwe and disclosed that he was to hand the goods at the airport. The person that was to collect the diamonds, reportedly Vardi’s son-in-law, was quickly caught. From there the way to Vardi was short.

The diamonds, which were not accompanied by Kimberley Process (KP) certificates as required by law and international treaties, were most likely from Zimbabwe’s Marange region and are therefore banned for exports.