Israeli billionaire son held in connection with diamond smuggling

The son of Israeli billionaire diamond magnate Lev Leviev is among suspects arrested in Israel in connection with a diamond smuggling scheme, according to court documents released on Tuesday.

The case focuses on Leviev's company, LLD Diamonds, a leading global manufacturer and marketer of polished diamonds, Police have said they expect to make more arrests, both in Israel and abroad.

Leviev's son Zevulun is among six suspects accused of involvement in a smuggling operation that has brought about 300 million shekels' ($80 million) worth of diamonds illegally into Israel since 2010, according to a transcript of a custody hearing held on Monday.

Israel is a world centre for diamond cutting and polishing, with one of the biggest exchanges in the world, at Ramat Gan.

Lawyers representing Zevulun Leviev in a statement said the allegations against him were "baseless" and his arrest appeared to be a tactic to "illegitimately pressure his father".

Lev Leviev, who was born in Uzbekistan and according to the court documents is currently believed to be in Russia, built his fortune in diamonds and property.

LLD said in a statement it had no knowledge of the alleged smuggling.

"Mr Leviev and the companies in his control operation in accordance with the proper norms while adhering to the law. We hope that the matter will be clarified soon and the suspicions will be proven baseless," it said.

Leviev also owns 48 per cent of the real estate firm Africa Israel Investments, once one of Israel's biggest conglomerates, whose business has struggled since a downturn in the Russian real estate market. 

(With inputs from agencies.)