Diamonds Direct Chairman’s Legal Woes Won’t Hurt Company

Diamonds Direct won’t be affected by the recent indictment in Israel of Alon Arabov, its founder and chairman, says a company statement.

“Alon Arabov was indeed indicted in Israel on charges relating to a dispute between Mr. Arabov and the Israeli taxing authorities dating back to 2012,” said the statement from Itay Berger, president of the five-store Charlotte, N.C.–based chain. “We fully expect the dispute to be resolved in due time and Mr. Arabov will fully cooperate with the authorities and settle the matter.”

“Mr. Arabov has multiple business ventures and is not, and has not in recent years, been actively involved in the business of Diamonds Direct,” the statement continued. “The events in Israel will absolutely have no effect on the operations or performance of Diamonds Direct whatsoever. The people who are Diamonds Direct remain committed to serving our customers and continuing to provide outstanding value and unparalleled customer care in all our markets.”

While news accounts did not specify charges, the indictments were reportedly related to the so-called “underground bank” that operated inside the Israeli Diamond Exchange.

Arabov was a former partner in sightholder DDM Arabov Group, a now-dissolved partnership between Arabov and Erez Daleyot. He now chairs the Arabov Group.

Also charged were local diamantaires Meir Anavi, Yorai Borochov, Gabriel Yosefov, and Zion Betzalel, according to and local news accounts.

Diamonds Direct will soon open a store in Oklahoma City, in the space that once housed Samuel Gordon Jewelers.




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