The arrest took place on Sunday afternoon when it was discovered that there was an international arrest warrant issued against him.
Benny Steinmetz was arrested on Sunday at the Eleftherios Venizelos airport after a request from Romania. He arrived in Greece shortly after 7 PM on Sunday on a private flight from Tel Aviv, and during the check, it was confirmed that there was an international arrest warrant against him.
The Israeli billionaire, known as the “king of diamonds,” is wanted by Romanian authorities, among other charges, for participation in a criminal organization.
According to reports, Steinmetz was referred on Monday to the Court of Appeals for his case to be reassessed, as Greece has refused to execute the arrest warrant following his conviction in 2020 by Romanian authorities for five years in prison on corruption charges.
Troubles with Romanian Justice
The Israeli billionaire’s involvement in bribery cases led to his downfall, with the underground flow of money becoming a matter of judicial scrutiny and lively commentary from prominent media outlets worldwide.
He has ranked highly not only on Forbes’ list but also on the Panama Papers list, with the repercussions of his shady business dealings felt across three continents: Europe, Africa, and America.
In 2020, Romania’s Supreme Court imposed a five-year prison sentence for property exploitation, leading Interpol to issue a “red notice” against Steinmetz. According to Romanian justice, Steinmetz received a five-year sentence for establishing a criminal organization and playing an active role in it.
Judicial Adventures
Many media outlets worldwide have meticulously examined Steinmetz’s life, focusing on his connections with political figures and the controversies surrounding his business practices. He has faced bribery charges related to mining rights exploitation in Guinea.
On January 22, 2021, a Geneva court convicted him of bribery, sentencing him to five years in prison. The case began to unfold in the early 2000s and became more complicated when it was revealed that Steinmetz’s company had paid millions to the former wife of the deceased president of Guinea, Lansana Conté.
The scandalous aroma of his dealings reached Rio de Janeiro, where exhaustive investigations began a year ago after Steinmetz accused the Brazilian manganese production company Vale of hiding information regarding one of the largest iron ore deposits in the world.
Steinmetz accused Vale’s executives of deliberately withholding information from shareholders about the actual risks associated with extraction. Both Vale and Steinmetz’s BSG Resources entered a long-running legal battle after they struck a deal in 2010 to extract the huge deposit in Guinea. BSG Resources was also involved in a corruption case related to mining in Sierra Leone, which supplies diamonds, among others, to Tiffany & Company.
It’s notable that this West African country has a per capita GDP of $1,600 and a life expectancy of 58 years.
The Panama Papers
A storm erupted when the name of the Israeli magnate appeared in the Panama Papers due to his deceptive business actions with the law firm Mossack Fonseca. The Panamanian law firm was at the center of the tax evasion scandal revealed by the Panama Papers in 2016.
The secret bank accounts that Steinmetz maintained at an HSBC branch in Geneva for nearly two decades (from 1988 to 2007) also caused turmoil in the international judicial system, holding up to $100 million.
The businessman had powerful connections, with close relationships to former Israeli prime ministers Ehud Barak and Ehud Olmert drawing further scrutiny.
A year ago, Steinmetz’s assets were exposed: one of the most expensive properties in Israel, a yacht, and a private plane for travel between Israel, Switzerland, and London.
Forbes List and the War with Soros
The Israeli’s financial stature earned him a spot on the Forbes list as financial networks delved into his business dealings. Bloomberg’s 2013 data estimated his wealth at $8 billion, placing Steinmetz among the richest Israelis.
However, after six years, the figures changed, and in 2019, he appeared on the Forbes list with $1 billion. His entry also noted a $10 billion lawsuit he filed against George Soros in 2017, accusing him of a defamatory campaign against him.
The Rise and Fall of an Empire
Reading about Steinmetz’s tumultuous and risky business journey raises curiosity about the beginnings of the ambitious Israeli who would become one of the most well-known entrepreneurs in the world.
Wealth accompanied him from a young age, as he grew up with parents who were diamond traders, with their company named Rubin Steinmetz & Sons. In the 1990s, with his brother Daniel’s help, he founded the Steinmetz Diamonds Group, which developed into a company with rights to purchase precious stones from the De Beers group.
However, his downfall was gradual, with the transition to an era of prosecutions being harsh. In 2013, the British newspaper “Guardian” wrote about a businessman who preferred to keep a low profile, skillfully avoiding media exposure. He claimed he did not need publicity, stating that his work speaks for itself.
In a Guardian feature, he denied all allegations of corruption, asserting that he had no connections to politicians. At the same time, he rejected accusations of tax evasion, claiming he did not permanently reside in Israel, and stated he was merely a consultant for BSGR, without a position that allowed him to make decisions.
Eight years later, the clouds thickened over his name. In 2021, the Guardian detailed the magnate’s conviction on bribery and document forgery charges related to the Guinean mine case, along with the money laundering traces across Switzerland and the extensions of a case under investigation in Europe, Africa, and the U.S.
Steinmetz chose to label himself as an “international Israeli,” and despite holding Israeli citizenship, he obtained a French passport. His home is located in Arsuf, overlooking the Mediterranean, among the most expensive properties in Israel.
His real estate extends to Geneva, where he owns a luxury residence, while his impressive yacht is anchored in southern France.
Born in 1956 in Netanya, Israel, he was the fourth child in a family that established a successful diamond trading business. At 21, after completing his military service, he left Israel for Belgium, specifically Antwerp, where he and his brother founded the Beny Steinmetz Group.
He met his wife Agnès in their teens; they married and had four children. They established a charity focused on education and youth programs, but the shadow of illicit money overshadowed Steinmetz’s entire journey.
