Gem trader in hiding after blowing R12m

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Published Apr 13, 2015

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Johannesburg - You would have to have a serious addiction, to gamble away $1 million (nearly R12m) in two weeks – especially when the money isn’t your own.

But this is exactly what one gem trader has done, according to sources in the diamond industry.

The trader stole what is believed to be as much as $1m in diamonds from dealers at the diamond centre in Joburg – and is said to have gambled it all away in two weeks.

Insiders in the industry have told The Star that the man, who is in his early twenties, took diamonds from various dealers promising to make the payment for them.

The man had been trusted, because his father was a well-known businessman in the diamond industry.

Because the sums of money in the gem trade are often large, payment can take a few days or even a week to come through.

But, when weeks passed and no payment was made, the dealers realised something was wrong.

One insider said the man was known to have a gambling problem and it was discovered that he had pawned the diamonds and gambled the money away in two weeks.

He is now in hiding.

“He isn’t very clever. I know that two men have already put a gun to his head demanding that he produce the money. I’m not sure what he is going to do now. His life is in danger,” one dealer said.

Treasurer of the Diamond Dealer Club Michael Ellis said he was aware of the incident, but he only knew of two dealers from whom diamonds had been stolen.

Ellis said the man was not a member of the Diamond Dealer Club, although he was known within gem circles. “You get a few incidents like this ever so often, but it happens with fringe members, not mainstream dealers,” Ellis said.

He pointed out that when any theft takes place, a ban on the dealer is placed worldwide.

“We are a small industry and when we ban someone, they will never be able to work in the industry anywhere in the world. We try and police ourselves in that way,” he explained.

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