Former Kimberley Diamonds Boss Arrested For Allegedly Misleading Stock Market Over Yellow Diamond Prices

(IDEX Online News) – Alexandre Alexander, also known as Alexandre Degrouchine, was arrested by Federal Police investigators from the Australian Securities and Investment Commission (ASIC) yesterday (Wednesday) morning, over allegations that the former CEO of Kimberley Diamonds mislead the stock market.

Alexander has been charged with four counts of making false statements to the Australian Securities Exchange (ASX), between October 2013 and March 2014. Each charge carries a maximum sentence of five years imprisonment and an AUD$34,000 ($24,300) fine, according to reports on the Australian Broadcasting Corporation (ABC) website.

ASIC alleges that Alexander authorized market statements that were based on an assumption of an increase, by as much as 30 percent, in the price of Kimberley Diamonds’ rare fancy yellow diamonds.

The period under review witnessed Kimberley’s share price fall by 41 percent, with a drop in earnings from AUD$7.5 million ($5.38 million) down to AUD$1.5 million ($1.08 million).

Kimberley Diamonds Pty Ltd and its Ellendale mine in Western Australia, which produced around half of the world’s yellow diamonds, were placed into voluntary administration in July.