Royal Asscher Not Affiliated with M. Fabrikant

Letter from Royal Asscher of America disavows any connection between the two firms

By JCK Online Staff -- JCK Online, 6/25/2008 9:14:00 AM

On June 18 aU.S. district court ruling document cited “RA Cut LLC” as a named affiliate company through which M. Fabrikant and Sons and the Fortgang family diverted finances to before filing for Chapter 11 bankruptcy protection. In the document the business was referred to as the hereafter term “Royal Asscher.”

Royal Asscher of America Inc. said the document presented the company’s name “without due consideration for the fact that another business is operating under a similar name.

In response, Lita Asscher, president Royal Asscher of America Inc. states:

“In 2001 Royal Asscher Diamond Company entered into a distributorship agreement with M. Fabrikant & Sons, whereby the company was responsible for the marketing and sale of our branded diamond cut the Royal Asscher Cut. Thus Royal Asscher Cut LLC was established as a Fortgang entity, it was owned by Matthew and Susan Fortgang's private trusts and it was without the knowledge of Royal Asscher Diamond Company or my family in Amsterdam. On request of the lawyers of Royal Asscher Diamond Company the Fortgangs changed the name of that company to RA Cut LLC in 2007.

“The dissolution of M. Fabrikant and Sons also dissolved the distributor agreement. In the event of an agreement termination M. Fabrikant and Sons were clearly precluded from using our good name, a name that has been built over 150 years, in the diamond industry.

“The agreement did not grant any rights to M. Fabrikant and Sons in our entities or assets—other than as a distributor. As per the terms of this agreement Royal Asscher was not granted any rights in Fabrikant/Fortgang assets. The Fortgangs have no interest whatsoever in any of our entities. Nor are any of our entities in possession of any assets of Fabrikant or of the Fortgang family.

“When M. Fabrikant & Sons filed for bankruptcy they did so to the financial detriment of our company. It has been legally asserted that the Fortgangs are responsible for a significant level of fraud and we welcome the legal moves that have been made to deal with this, it is just unfortunate that our name has been improperly associated with the scandal. Royal Asscher is a company that prides itself on ethics and integrity; people who deal with us regularly are aware of this, but it is important that we make a statement to protect our brand and reputation.

“Royal Asscher of America, Inc is the only legal distributor of the Royal Asscher Cut in the USA and Canada and the marketing and management of the Royal Asscher brand. The company was created to give the Royal Asscher Diamond Company a North American business following M. Fabrikant & Sons filing for bankruptcy. Royal Asscher of America Inc is wholly owned by Royal Asscher Diamond Company (Koninklijke Asscher Diamant Maatschappij B.V.), a Netherlands corporation. Neither Royal Asscher Diamond Company, Royal Asscher of America, or for that matter any of the Asscher family have any affiliation with M. Fabrikant & Sons, the Fortgang family or Royal Asscher Cut, LLC.”