Leviev wins $209M judgment in corporate split

Africa Israel chair has spent years battling with ex-diamond dealer partners

TRD New York /
Feb.February 28, 2017 02:30 PM

Africa Israel Investments chair Lev Leviev won a $209 million judgment in an ugly split with his former business partners.

The back-and-forth got so messy that it led to death threats and a smear campaign to the arbitrator initially assigned to the case. A Manhattan federal judge Tuesday ordered Leviev’s former business partners to cough up $142 million to his LGC USA Holdings on top of another $66 million that had already been forked over, the New York Post reported.

Leviev TRData LogoTINY, a billionaire diamond mogul nicknamed the “king of diamonds,” has spent years in courts battling with his ex-partners from upstate New York, the Julius Klein Group.

The award may be record for the industry. The dispute between Leviev and his former partners initially went to arbitration, but turned ugly fast when evidence surfaced that the arbitrator had been convicted of tax fraud and was tied to a scheme to export diamonds from Belgium while reselling them on the black market, according to Tuesday’s tax ruling.

The arbitrator also received death threats, according to Judge Jesse Furman.

“The Leviev Group will take all steps available, including seizing corporate and individual assets, to collect this judgment after the lengthy legal procedures now have resulted in this final ruling,” Leviev’s lawyer, Charles Michael, said.

Leviev’s real estate firm, Africa Israel, has global holdings and trades on the Tel Aviv Stock Exchange.

Last year, Leviev agreed to pay $2 million to the city and relinquish control of three condominium buildings to their respective condo boards as part of a settlement with the New York state Attorney General’s office over major construction defects at 15 Broad Street, 20 Pine Street and 85 Adams Street. [NYP]Rich Bockmann


Related Articles

arrow_forward_ios
Maison Kayser (Photo via Tools of Men via Flickr)

Maison Kayser may bid New York adieu

Maison Kayser may bid New York adieu
Newmark’s Brian Waterman with 7 Hanover Square (Google Maps, Twitter)

Newmark nabs REBNY prize for deal with NYC Health + Hospitals

Newmark nabs REBNY prize for deal with NYC Health + Hospitals
The legislation from a City Council member introduced a bill to temporarily repeal the commercial rent tax for businesses during the Covid-19 state of emergency. (Getty, iStock)

Commercial rent tax cut introduced in City Council

Commercial rent tax cut introduced in City Council
Michael Rudder, James Nelson, 141 Wooster Street and 633 Third Avenue (Google Maps)

The Outlook: Industry experts break down Manhattan’s office condo market

The Outlook: Industry experts break down Manhattan’s office condo market
Peter Nicoletti and Colliers' David Amsterdam

Colliers taps JLL’s Peter Nicoletti to lead capital markets

Colliers taps JLL’s Peter Nicoletti to lead capital markets
City Council member Keith Powers (Getty)

Pol, biz groups: Suspend rent tax, extend outdoor dining

Pol, biz groups: Suspend rent tax, extend outdoor dining
Only 9 percent of workers had returned to Midtown and 8 percent to Downtown. (iStock)

Where is everybody? City workers still home

Where is everybody? City workers still home
Documents filed in court say big retailers’ lawsuits show the protections go too far — and curb landlords’ right to commercial speech. (iStock)

City protects big companies, hurts small landlords: lawsuit

City protects big companies, hurts small landlords: lawsuit
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...