Beny Steinmetz
Born (1956-04-02) April 2, 1956
Netanya, Israel
CitizenshipIsraeli, French
OccupationBusinessman
SpouseAgnes
Children4

Beny Steinmetz (Hebrew: בני שטיינמץ; born 2 April 1956) is an Israeli businessman and entrepreneur, with a focus in the mining, energy, real estate and diamond-mining industries.[1] He has been convicted of corrupt and illegal business practices in multiple countries.[2][3][4] Beny Steinmetz is the chairman and co-founder of the philanthropic trust, Agnes & Beny Steinmetz Foundation and is actively involved in the art world in Israel.[5][6][7]

Early life and family

Beny Steinmetz was born in 1956 in Netanya, Israel and is the fourth child of Rubin Steinmetz, a pioneer of the diamond trade.[8] At the age of 21, after serving three years in the IDF, Steinmetz emigrated from Israel to Belgium, to the famous diamond hub, Antwerp.[9]

Today Steinmetz lives in Israel with his wife Agnes and their four children.[10] Steinmetz also holds French citizenship and describes himself as an "international Israeli."[11]

Business career

In 1997, he decided to get away from Antwerp and diamonds and left Belgium to settle in Israel.[9]

In 1988 he bought his first and largest diamond factory in South Africa. In the coming years he expanded his activities to other African countries, such as Angola and Botswana. He also branched out into ventures such as mining, real estate and capital markets. The group operates in more than 25 countries.[9]

Steinmetz occupies an advisory role in the Beny Steinmetz Group Resources (BSGR) Board of Directors. BSGR is a natural resource company active in the fields of oil & gas, mining, metal and power[12] headquartered in the island of Guernsey.[13]

Steinmetz and billionaire George Soros, once business partners, parted company in the 1990s over a Russian business deal gone sour.[14]

Koidu Holdings, which formerly operated as a joint venture, has been wholly owned by the BSGR company since 2007.[15][16] In 1997, he founded STI Ventures NV, a venture capital firm that invests in start-up companies in Israel.[12] In 1999, he was the owner of Tucows.[17]

In 2007, Steinmetz "was forced to abandon plans for a $580 million share sale in London for his Cunico Resources vehicle."[18]

A now-defunct company, of which he was a founder and shareholder, Nikanor plc, listed in London, was acquired by Katanga Mining in 2008.[19] Through his company called Scorpio, he owns real estate in Kazakhstan, Russia, and Eastern Europe.[10][20]

In March 2014, the Swiss daily Le Temps reported that Beny Steinmetz had sold shares in the Steinmetz Diamond Group (SDG) to his brother Daniel.[21]

In March 2015, BSG Capital owned a 16% share of Gabriel Resources.[4] As of March 2015 BSG Capital, a subsidiary of BSGR, held a 16% share in Gabriel Resources Ltd.[22]

In June 2016, it was reported that BSGR had divested itself of most of its holdings in Cunico Resources,[23] in favor of International Mineral Resources, with which it had ownership of FENI Industries in a joint venture.[24]

As late as 2017, Steinmetz reportedly owned Cunico Resources which operates in North Macedonia and Kosovo, as well as Canada-based Gabriel Resources, a gold-mining company seeking (unsuccessfully thus far) to reopen a mine in Romania.[25]

In 2017 Cunico Resources, which was based on The Netherlands, requested arbitration with North Macedonia at the International Centre for Settlement of Investment Disputes over its FENI Industries property in Kavadarci. The arbitration "Claims arising out of the alleged interference by the Government in the claimant’s planned sale of FENI Industries, which allegedly led to initiation of bankruptcy proceedings against FENI" was later discontinued,[26] and FENI was sold to EuroNickel Industries.

On 14 August 2017, Steinmetz was arrested as part of a joint investigation by Israeli and Swiss anti-corruption officials over allegations of fraud, breach of trust, bribery, obstruction of justice and false registration of corporate documents with the apparent purpose of money laundering.[25] He was released to house arrest on 17 August 2017.[27][28]

In spring 2018, the BSGR went into voluntary receivership "in the face of bribery allegations".[29]

In June 2019, two months after losing in the London Court of International Arbitration a $2-billion arbitration against Vale, BSGR sought bankruptcy protection in the U.S. At that time, BSGR sued Soros, alleging a defamation campaign that cost the company its rights to Simandou and at least $10 billion."[14]

In November 2019 Forbes estimated his net worth at $1.1 billion.[10]

In January 2021, Beny Steinmetz was found guilty in a Swiss court of bribing senior foreign public officials and fraud and forgery of corporate documents. This pertained to the granting of rights to an iron ore mine in Guinea.[30] He was sentenced to 5 years in prison and a fine of 50 million Swiss francs[31][3] regarding the Simandu Case[18][32] He lost his appeal over corruption charges in 2023.[2]

On 14 February 2022 the Brazilian mining company Vale SA dropped a $1.2 billion claim against individuals and entities linked to Beny Steinmetz.[33]

Controversies and criminal trials

Guinea and the Simandou deposit

In 2013 Steinmetz was falsely accused by French newspaper Le Canard Enchainé of hiring French, Israeli and South African mercenaries to topple the government of Guinea. Steinmetz sued the newspaper for libel. In September 2018, because the paper could not prove the authenticity of the sources, it claimed to cite (the CIA and its French equivalent), the French court of appeals ruled that the newspaper defamed Steinmetz and his company. The paper and the journalist behind the article had to pay a total of 50,000 euros and publish corrections in the Canard Enchainé as well as three other major newspapers.[34]

Beny Steinmetz had been involved in a long-running dispute with the government of the Republic of Guinea surrounding the development of Simandou Blocks 1 & 2, part of one of the world's largest iron-ore deposits.[35] In December 2008, a three-year exploration permit to prospect for iron ore in Simandou, was awarded to BSGR Guinea, after the government of Guits to mine the northern half of Simandou to Steinmetz for $160 million. Steinmetz then soon sold a 51% share to Vale for $2.5 billion.[36]

The U.S. Justice Department and the FBI investigated BSGR's acquisition of the rights to extract half of the iron ore deposits at Simandou, due to illegitimate concerns.[37][38] BSGR denied these allegations and in an interview to the New Yorker, Steinmetz said: “We are the victims. We have done only good things for Guinea, and what we’re getting is spit in the face."[39]

In April 2014 the Guinean government accused BSGR of obtaining the Simandou mining rights by paying bribes to the wife of then-president Lansana Conté in 2008, and that the rights would be stripped from BSGR and its partner Vale S.A.[40]

In September 2014 BSGR started an international arbitration proceeding against the Republic of Guinea in the International Centre for Settlement of Investment Disputes, challenging the government's decision to revoke its mining rights.[41] In February 2019, BSGR together with Guinean President Alpha Condé agreed to drop the pending arbitration case and all allegations of wrongdoing.[1] As part of the agreement, BSGR would relinquish its rights to Simandou and maintain an interest in the Zogota deposit that would be developed by head of Niron Metals, Mick Davis.[42][43]

Rio Tinto then filed suit against Steinmetz, BSGR and Vale alleging that they had devised a RICO scheme to steal "valuable mining rights" held by Rio Tinto.[44]

Steinmetz subsequently hired former FBI director Louis Freeh, defense attorney Alan Dershowitz, and law firm Skadden, Arps, Slate, Meagher & Flom, as part of his defense team.[45]

In November 2015, Rio Tinto's RICO lawsuit against BSGR was dismissed, with U.S. District Judge Richard Berman ruling that Rio exceeded the statute of limitations when filing their claim against BSGR in 2014 and that the company failed to identify a pattern of racketeering activity by the defendants.[46]

In mid-November 2016, Alan Davies, head of the Rio Tinto department responsible for Simandou, was suspended due to an investigation into the lawfulness of Rio Tinto's payment to Francois de Combert, former managing partner at Lazard and personal adviser to the president of Guinea.[47]

On 1 December 2016, France 24 aired recordings from 2012 that it claimed were conversations between Francois de Combret and unnamed people involved in negotiations over the future of Simandou.[48]

In December 2016, Steinmetz was arrested on suspicion of money laundering and bribery charges following an investigation carried out by Israeli, American, Swiss, and Guinean authorities in coordination with the OECD.[49]

He was placed under house arrest in Israel on 19 December 2016, due to accusations that he paid tens of millions of dollars to senior public officials in Guinea to advance his businesses, specifically in connection with BSGR's purchase of Simandou.[50] Steinmetz was released without charge the following month.[50][51]

In April 2017, BSGR filed a suit against American billionaire George Soros in U.S. federal court in New York, claiming he had engaged in a lengthy effort to defame the company and sabotage its business in Simandou and around the world.[50][49][52]

In 2021, Steinmetz was convicted by a Geneva court of bribery and forging documents to gain mining rights in Guinea and was sentenced to five years in prison and a fine of $50 million.[53] The conviction was upheld on appeal in a March 28, 2023 ruling.[2]

Switzerland

On January 22, 2021, Steinmetz was found guilty in Geneva of corruption related to bribes paid in Guinea. He was sentenced to five years in prison, and ordered to pay a fine of 50 million Swiss francs.[31][54][55] In 2023, a Swiss court upheld the bribery conviction.[2]

Romania

On 10 March 2016, Steinmetz was indicted in absentia by the Romanian National Anticorruption Directorate, on charges of the unlawful recovery of Paul-Philippe Hohenzollern's inheritance.[56] Two other Israelis and he were on trial "in several cases involving high-ranking dignitaries in Romania."[25]

In February 2018, a court in Romania dismissed the request for a warrant for his arrest.[57]

An Athens court rejected an extradition request by Romanian authorities in March 2022, ruling that Steinmetz's right to a fair trial in Romania was violated and that he is at real risk of inhuman and degrading treatment if extradited.[58] The décision was confirmed on appeal

Panama Papers

Beny Steinmetz was named in 282 documents in the Panama Papers leak.[59] This included revelations around corruption and improper business dealings in Sierra Leone,[60] the Democratic Republic of Congo[59] as well as further details on activities in Guinea.[61]

Philanthropy

Beny Steinmetz, businessman and philanthropist, has accumulated a billionaire status through his work.[62] With his wife, he oversees the Beny & Agnes Steinmetz Foundation, which donates to schools, hospitals, army units and the arts in Israel.[10] The foundation was simply an extension of the work that they had already been doing for a number of other charitable causes.[63]

Agnes and Beny Steinmetz Foundation

In 2006, Steinmetz and his wife Agnes started the Agnes and Beny Steinmetz Foundation in order to unify their multiple volunteer activities under the auspices of one philanthropic organization in Israel. The Foundation is primarily engaged in financing projects in the fields of education, healthcare, and culture for young children.[64]

The Agnes and Beny Steinmetz Foundation also supports programs that work with at-risk youth, runs after-school facilities for children from disadvantaged families,[65] and offers scholarships to students from difficult socio-economic backgrounds.[66]

Every year, the Agnes & Beny Steinmetz Foundation donates 125 scholarships valued at 8,000 NIS each to Netanya Academic College students.[67][68]

2006 Grants[69]
50.000 Children
3.000 Parents
2.000 Faculty Members

The Foundation also donates to several organizations and institutions, including the Tel Aviv Museum, the Association for the Wellbeing of Israel's Soldiers (mainly supporting the soldiers of the Tzabar Battalion Of the Givati Brigade),[70] the Israel Cancer Association, and various hospitals.[71]

Beny has been one of the major donors to the Tel Aviv Museum of Art. The Steinmetz Foundation has sponsored the construction of an entire wing at the museum's newest building: the Agnes and Beny Steinmetz Wing for Architecture and Design. This facility includes two galleries, one of which is dedicated to the museum's design displays, and the other to architecture.[72]

Both Beny and Agnes Steinmetz hold honorary doctorate degrees from the Netanya Academic College as well as from the Tel-Aviv Museum of Art in recognition off their support for cultural initiatives.[73]

At the end of 2016, the Foundation held a festive event to celebrate a decade of giving. Attendants included representatives of the many organizations the Foundation had supported over the years by contributing a cumulative amount of tens of millions of shekels.[74]

References

  1. ↑ Forbes 2010
  2. 1 2 3 4 Farge, Emma; Denina, Clara. "Swiss court upholds corruption ruling against mining magnate Steinmetz". Reuters.com. Retrieved 1 September 2023.
  3. 1 2 "Swiss court hands diamond magnate five-year prison sentence". SWI swissinfo.ch. Reuters/Keystone-SDA. 22 January 2021. Retrieved 2021-01-22.
  4. 1 2 "BSG Capital Gabriel Resources owner Steinmetz wanted in Romania". Mining See. 11 March 2016.
  5. ↑ IEFIMERIDA.GR, NEWSROOM (2022-04-02). "The amazing life and career of Beny Steinmetz". iefimerida.gr (in Greek). Retrieved 2022-07-28.
  6. ↑ "Home". Beny Steinmetz - Businessman and Philanthropist. Retrieved 2022-07-28.
  7. ↑ "Investing in Art". Beny Steinmetz - Businessman and Philanthropist. Retrieved 2022-07-28.
  8. ↑ Sherwood, Harriet (30 July 2013). "Beny Steinmetz: Israeli diamond dealer who likes to keep a low profile". The Guardian. Retrieved 30 July 2013.
  9. 1 2 3 IEFIMERIDA.GR, NEWSROOM (2022-04-02). "The amazing life and career of Beny Steinmetz". iefimerida.gr (in Greek). Retrieved 2022-05-13.
  10. 1 2 3 4 "Beny Steinmetz". Forbes. Retrieved 2019-11-21.
  11. ↑ "Israeli Billionaire Steinmetz's BSGR Settles Guinea Row, Looks to Zogota Iron Ore". Haaretz. 2019-02-25. Retrieved 2019-11-21.
  12. 1 2 "13 Israelis Make Forbes' Billionaire List". The Jewish Voice. 2012-03-15. Retrieved 2019-11-21.
  13. ↑ Minerals Yearbook. Washington DC: USGS Bureau of Mines. 2008. pp. 20–2. ISBN 9781411329669.
  14. 1 2 "Steinmetz's BSGR bankruptcy fends off Vale's $2B award". Mining dot com / Glacier Media Group. Bloomberg News. 4 June 2019. Archived from the original on 26 July 2021.
  15. ↑ Koidu Holdings Company History Archived 2013-04-05 at the Wayback Machine Retrieved 2012-12-15
  16. ↑ Joan Baxter, Dust from our eyes: an unblinkered look at Africa, Wolsak and Wynn Publishers Ltd., 2008, p. 226
  17. ↑ ISLA, Volume 54, Issue 12, Oakland, California: Information Services on Latin America, 1999, pg. 7379
  18. 1 2 Miller, Hugo; Biesheuvel, Thomas (12 January 2021). "Beny Steinmetz Pressed on Guinea Deals on Second Day of Bribery Trial". Bloomberg News.
  19. ↑ Bream, Rebecca (2007-11-06). "Nikanor and Katanga to merge". Financial Times. Retrieved 2019-11-21.
  20. ↑ "Israeli police holds ex-Rosia Montana shareholder Beny Steinmetz". Business Review (in Romanian). 2016-12-19. Retrieved 2019-11-21.
  21. ↑ "Guinea to strip Beny Steinmetz company of mining concessions". The Guardian. 9 April 2014.
  22. ↑ "Gabriela Scripnic - Emotion-invoking strategies in the presentation of Roşia Montană Project in the Romanian public sphere", Rhetoric, Knowledge and the Public Sphere, Peter Lang, 2016, doi:10.3726/978-3-653-05950-2/20, ISBN 978-3-631-66633-3
  23. ↑ Fortson, Danny (12 June 2016). "Diamond city — where it rains rocks". Times Newspapers Limited.
  24. ↑ VAN CALSTER, GEERT (22 January 2019). "Cunico v Daskalakis. Lugano Convention, employment and choice of court". GAVC LAW.
  25. 1 2 3 Touma, Ana Maria (14 August 2017). "Balkan Mining Tycoon Arrested for Alleged Graft". Balkan Insight.
  26. ↑ "2017 Cunico v. Macedonia Cunico Resources N.V. v. Macedonia, former Yugoslav Republic of (ICSID Case No. ARB/17/46)". UNCTAD Division on Investment and Enterprise. Retrieved 3 April 2021.
  27. ↑ "Beny Steinmetz to be released to house arrest". Globes (in Hebrew). 2017-08-17. Retrieved 2019-12-08.
  28. ↑ Eisenbud, Daniel; Shaham, Udi (14 August 2017). "Israeli billionaire arrested in int'l money laundering probe". jpost.com. Jerusalem Post. Retrieved 21 February 2018.
  29. ↑ Reguly, Eric (11 June 2018). "Once promising Gabriel Resources loses another CEO as company's prospects dim". The Globe and Mail Inc.
  30. ↑ "Beny Steinmetz bribery conviction appeal begins in Geneva". Globes. 2022-08-30. Retrieved 2022-09-29.
  31. 1 2 "Swiss court finds Israeli businessman Beny Steinmetz guilty of corruption". Reuters. 2021-01-22. Retrieved 2021-01-22.
  32. ↑ Besson, Sylvain (11 January 2021). "Mines, milliards et coups tordus - a Geneve, le milliardaire Beny Steinmetz defie ses accusateurs" (in French). 24heures.
  33. ↑ "Brazil's Vale drops $1.2 bln claim in Steinmetz dispute". Nasdaq. 14 February 2022. Retrieved 16 February 2022.
  34. ↑ "Coup Claims Against Steinmetz Land French Newspaper With Fine". 2018-09-07. Retrieved 2019-12-08.
  35. ↑ "Israeli Billionaire Steinmetz's BSGR Settles Guinea Row, Looks to Zogota Iron Ore". Haaretz. 2019-02-25. Retrieved 2019-12-08.
  36. ↑ "Guinea and its iron ore: Let the people benefit, for once". The Economist. 7 June 2014.
  37. ↑ FBI arrest agent over bribery cover-up claim in battle over $10bn mountain, The Guardian, 16 April 2013.
  38. ↑ "The corruption deal of the century: How Guinea lost billions of pounds in Simandou mining licensing, The Independent, 17 June 2013.
  39. ↑ Patrick Radden Keefe, "Buried Secrets: How an Israeli billionaire wrested control of one of Africa's biggest prizes", The New Yorker, 8 July 2013.
  40. ↑ Ian Cobain; Juliette Garside; Anne Penketh (9 April 2014). "Guinea to strip Beny Steinmetz company of mining concessions". The Guardian. Retrieved 1 May 2014.
  41. ↑ "BSGR pushes ahead with arbitration against Guinea over Simandou mining rights". Reuters. 10 September 2014.
  42. ↑ "Mining Billionaire Ends Bitter Guinea Dispute After Months of Secret Negotiations". 2019-02-25. Retrieved 2019-12-08.
  43. ↑ Goodley, Simon (2019-02-25). "Beny Steinmetz settles dispute with Guinea over iron ore project". The Guardian. ISSN 0261-3077. Retrieved 2019-12-08.
  44. ↑ Cobain, Ian (1 May 2014). "Rio Tinto sues Israeli billionaire Beny Steinmetz". The Guardian. Retrieved 2 May 2014.
  45. ↑ Silverstein, Ken (2 January 2015). "Louis Freeh's Latest Investigation: Billionaire Businessman Accused of Bribing African Government". The Intercept. Archived from the original on 2 January 2015.
  46. ↑ Erik Larson; Bob Van Voris (20 November 2015). "Steinmetz, BSG Resources Win Dismissal of Rio Tinto Lawsuit". Bloomberg News.
  47. ↑ "Billionaire Says Rio Probe Proves Elaborate Plot to Strip Prized Guinea Mine Rights". Bloomberg News. 11 November 2016. Retrieved 21 February 2018.
  48. ↑ "Audio recordings drag Guinea president into mine bribery scandal". France 24. 1 December 2016. Retrieved 12 December 2016.
  49. 1 2 "Billionaire vs. billionaire: Israel's Steinmetz sues Soros". The Times of Israel. Retrieved 18 April 2017.
  50. 1 2 3 "BSGR sues billionaire George Soros over the loss of Guinea iron project". Reuters.
  51. ↑ Billionaire Beny Steinmetz released from Israel house arrest, Reuters.com, 4 January 2017.
  52. ↑ "Soros Sued by Fellow Billionaire in $10 Billion Mine Brawl". Bloomberg News. 14 April 2017. Retrieved 21 February 2018.
  53. ↑ "Israeli minerals magnate Beny Steinmetz convicted of corruption". the Guardian. Associated Press. 22 January 2021. Retrieved 29 June 2022.
  54. ↑ swissinfo.ch/ilj, Reuters/Keystone-SDA/SWI (22 January 2021). "Swiss court hands diamond magnate five-year prison sentence". SWI swissinfo.ch. Retrieved 2021-01-22. {{cite web}}: |first= has generic name (help)
  55. ↑ "Mines, milliards et coups tordus – À Genève, le milliardaire Beny Steinmetz défie ses accusateurs". 3 January 2021.
  56. ↑ "Bombă aruncată de DNA: Se cere arestarea a patru afaceriști extrem de influenţi" (in Romanian). antena3. 10 March 2016.
  57. ↑ "Romanian court refuses Steinmetz arrest warrant". Globes. 22 May 2016. Retrieved 21 February 2018.
  58. ↑ "Court rejects extradition request for mining billionaire Beny Steinmetz – Athens-News.GR". athens-news.gr. Retrieved 2022-04-05.
  59. 1 2 Seargent, Barry (2016-05-29). "Panama Papers flag billion-dollar DRC mining rip-offs | Special Reports | M&G". Mail and Guardian. Archived from the original on May 29, 2016. Retrieved 2023-09-01.
  60. ↑ Sharife, Kadije; Gbande, Silas (2017-05-10). "Sierra Leone's flawed diamond trade". The Namibian. Archived from the original on May 10, 2017. Retrieved 2023-09-01.
  61. ↑ Sharife, Kadije (2016-04-04). "Panama Papers: Steinmetz Guinea deal pried open". Times Live. Archived from the original on May 4, 2016. Retrieved 2023-09-01.
  62. ↑ "8 Renowned Philanthropists And Their Charitable Work | Think Research Expose". 11 April 2022. Retrieved 2022-04-26.
  63. ↑ Saunders, John (2022-04-11). "Ten philanthropic role models to model your charitable giving after". London Business News | Londonlovesbusiness.com. Retrieved 2022-04-26.
  64. ↑ דובר, שירי (31 October 2016). "מי הגיע לאירוע ההוקרה של קרן אניאס ובני שטיינמץ? - גלובס". Globes. Retrieved 2017-07-26.
  65. ↑ "The Agnes & Beny Steinmetz Foundation". www.steinmetz-foundation.com. Retrieved 2017-07-26.
  66. ↑ "netanya.ac.il/Interested/Scholarships/Pages/Scholarships7.aspx". www.netanya.ac.il (in Hebrew). Archived from the original on 19 June 2017. Retrieved 21 February 2018.
  67. ↑ "Academic Scholarships | Beny Steinmetz - Businessman and Philanthropist". www.beny-steinmetz.org. Retrieved 2022-02-22.
  68. ↑ "Beny Steinmetz Scholarship: Suggested Addresses For Scholarship Details | Scholarshipy". www.scholarshipy.com. Retrieved 2022-02-22.
  69. ↑ "About". The Agnes & Beny Steinmetz Foundation. Retrieved 2022-05-09.
  70. ↑ "חוגגים עשור לקרן אניאס ובני שטיינמץ | המגזין של פרויקט אמץ לוחם". ametz.awis.org.il (in Hebrew). Retrieved 21 February 2018.
  71. ↑ "קרן אניאס ובני שטיינמץ | עמוד הבית". www.steinmetzfoundationnews.com (in Hebrew). Retrieved 21 February 2018.
  72. ↑ "Investing in Art | Beny Steinmetz - Businessman and Philanthropist". www.beny-steinmetz.org. Retrieved 2022-02-22.
  73. ↑ IEFIMERIDA.GR, NEWSROOM (2022-04-02). "The amazing life and career of Beny Steinmetz". iefimerida.gr (in Greek). Retrieved 2022-04-06.
  74. ↑ "אירוע חגיגת עשור לקרן אניאס ובני שטינמץ". steinmetzfoundationnews.com (in Hebrew). Archived from the original on 25 October 2017. Retrieved 21 February 2018.
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