Israeli police said Thursday, August 15, that diamond-mining magnate Beny Steinmetz and political consultant, Tal Silberstein, arrested this week on charges including money laundering, obstruction of justice and bribery will be released under restrictive conditions, according to The Times of Israel.
The two were arrested earlier this week following a joint investigation with Swiss and American authorities. Several others were also detained, according to Reuters.
Steinmetz was also arrested late last year and accused of bribery in the Republic of Guinea in regard to his company, BSG Resources’ (BSGR) interest in the Simandou project.
BSGR signed a deal with Vale in 2010 to develop the Simandou project. However, under a new government, in 2014, Guinea revoked the rights to 50% of the project held by Vale and BSGR alleging corruption.
Then, Rio Tinto, which prior to 2008 held the rights to all four blocks of the project, filed a Racketeer Influenced and Corrupt Organizations Act (RICO) complaint in the U.S. Southern District of New York against BSGR, Steinmetz and other defendants including Vale. A judge dismissed the case because Rio Tinto failed to allege any sufficient or coherent claim against BSGR and the others under the United States’ RICO 1970 and Rio’s conspiracy claim under RICO did not and could not, therefore, exist.
