Cops Arrest Former Head of Kimberley Diamonds for Misleading Stock Market

• Updated On Mar 25, 2020

Alexander, the former CEO of the Australian-based mining company Kimberley Diamonds, was recently arrested on charges of making false and misleading statements by the Federal Police and Investigators from the Australian Securities and Investments Commission (ASIC). He was arrested at the Sydney Airport immediately after his flight landed.

Alexander, who is also known as Alex Alexander Dergouchine, 48, has been charged on four counts, which includes making false and misleading statements to the Australian Securities Exchange (ASX) between October 2013 and March 2014.

The allegations laid down by ASIC says that the former CEO made authorized market statements and did not disclose the fact that it was assumed that Kimberly Diamonds would obtain 30 per cent increase in price for rare fancy yellow diamonds. 

It has been noted by ASIC that between March 2013 and May 2014, Kimberly Diamonds negotiated an increased rate of the yellow diamonds which it sold to luxury jewelry retailer Tiffany & Co. Once these negotiations came to a stop in May 2014, the company’s shares fell by 41.5 per cent. Its revised earnings also saw a drop from US$7.5 million to US$1.5 million.

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• Cops Arrest Former Head Of Kimberley Diamonds