Who was telling the truth in $1bn diamond trial? No one…
Judge attacks Gaydamak and Leviev in a case that laid bare the 'lawlessness'
Friday 29 June 2012
Related articles
After an extraordinary case with a plotline and cast list suitable for a John Le Carre novel, a Russian-Israeli multi-millionaire emerged yesterday as the loser in a $1 billion claim against a rival dubbed the “King of Diamonds” following a bitter dispute over a mining venture in Angola.
Arkady Gaydamak, 60, – who brought the case in London despite being a fugitive from justice in Israel – was told he had signed away his rights to the business after a long-running and tumultuous relationship with Israeli businessman Lev Leviev.
Uzbekistan-born Mr Leviev – who has a £35m house in Hampstead, north London - made his vast wealth from four decades as an internationally-renowned diamond trader. The case shone a light on how a handful of foreign players have made fortunes from exploiting Africa’s natural resources.
The dispute centred on a contract allegedly drawn up between the two men designed to share the proceeds of a the mining venture set up during Angola’s civil war – but was lost or shredded after it was handed over to Russia’s chief rabbi for supposed safe-keeping.
In a sometime damning judgement, High Court Judge Mr Justice Vos cast doubt on the word of both men, criticising Mr Leviev, 55, for re-writing history and arrogance and saying that Mr Gaydamak’s evidence could not be relied on.
“I did not find him a reliable witness. He was rather garrulous and unstructured in his answers … He could certainly not be relied upon as regards the details of his evidence,” he said in the 70-page written judgement.
The dispute grew out of Angola’s long-running civil war when the government was trying to wrest control of blood diamonds that Unita rebels were using to fund their cause. Mr Gaydamak supplied arms to the Angolan leadership and also security services, run by a former head of Israel’s intelligence agency Mossad.
Mr Gaydamak, the father of former Portsmouth FC owner Sacha Gaydamak, said he signed an agreement in 2001 for Mr Leviev to act as his “front-man” for a venture in the world’s fifth largest diamond producer. He said that he was seeking a lower-profile after an international warrant was sought for his arrest during an inquiry by the French into kickbacks and illegal arms deals with Angola.
He had sought to split the proceeds 50-50 with Mr Leviev and had been due about $3 million a month but had received nothing since 2004. Mr Leviev said that no deal had been signed and a settlement was agreed in 2011, which ended their dispute.
In his ruling yesterday, Mr Justice Vos cast doubt on Mr Leviev’s claims that no deal had been signed. “I did not find Mr Leviev an entirely reliable witness. He displayed an arrogance, even a contempt, for Mr Gaydamak, which ill-became him since he had been so closely involved with him in 1999 and 2000.”
He added: “I think his denial of any partnership arrangement of any kind was simply implausible and frankly unbelievable.”
However, he said that Mr Gaydamak’s responses showed the “lawless” nature of his dealings in Angola before the 2001 deal.
The case is the latest series of complex business disputes brought to London by billionaires from Russia and the former Soviet states. Mr Gaydamak gave evidence via video link from Israel because he feared arrest on a European Arrest Warrant after he was sentenced in France to 36 months in jail for money laundering and tax evasion.
Mr Justice Vos said that the deal signed in 2011 – in the presence of General Kopelipa, ostensibly the prime minister of Angola - effectively settled their dispute and dismissed the claim.
In a statement after the ruling, Mr Gaydamak announced his intention to appeal. “I have said all along that I was bamboozled into signing” the agreement, he said.
In a statement from his solicitors, Mr Leviev was said to be “obviously very pleased with this outcome.”
-
Revealed: Devastating impact of 'bedroom tax' sees huge leap in demand for emergency hardship handouts for tenants
-
Notes from a small island: Is Sealand an independent 'micronation' or an illegal fortress?
-
You thought Ryanair's attendants had it bad? Wait 'til you hear about their pilots
-
Revealed: Eerie new images show forgotten French apartment that was abandoned at the outbreak of World War II and left untouched for 70 years
-
Chloe Johnson death: Family of five-year-old British girl who died in a pool at in Egypt's Sharm el-Sheikh resort 'angry' that more wasn't done to save her
- 1 Stoke City investigate 'religious abuse' after 'pig's head is found in Kenwyne Jones' locker'
- 2 Gove’s lesson: spare the comma, spoil the child
- 3 Ukip captures Labour fortress in South Yorkshire by-election
- 4 You thought Ryanair's attendants had it bad? Wait 'til you hear about their pilots
- 5 Join Ryanair! See the world! But we'll only pay you for nine months a year
Get your summer started with British Military Fitness
BMF is the UK’s biggest and best loved outdoor fitness classes
Visit York
Find out what The Independent's resident travel expert has to say about one of the most beautiful small cities in the world
Enter the latest Independent competitions
Win anything from gadgets to five-star holidays on our competitions and offers page.
Business videos from commercial thought leaders
Watch the best in the business world give their insights into the world of business.
Independent Dating
iJobs General
PHP/ Drupal Developer - £35k - WC
£30000 - £40000 per annum + BENS: Progressive Recruitment: Drupal Developer A ...
C# WEB DEVELOPER
£45000 - £50000 per annum + bens: Progressive Recruitment: C# WEB DEVELOPER Le...
WPF Developer (C#, VB.Net) - North East - 6 Months
£240 - £260 per day: Progressive Recruitment: WPF Developer (C#, VB.Net) North...
KS2 PPA teacher
£85 - £120 per day: Randstad Education Cheshire: KS2 teacher needed to do PPA ...
Day In a Page
The price of pacifism
Jason Isaacs: Groupies, theatre bores and James Bond
Sealand: 'Micronation' or illegal fortress?
One man returns to Argentina's town that drowned
Gordon Ramsay's worst nightmare: A restaurant he cannot save
Why bitters are back on the bar
The 10 Best barbecues






