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RAPAPORT... U.S. District Judge Andrew Carter dismissed Lazare Kaplan's Racketeer Influenced and Corrupt Organizations Act (RICO) suit against defendants KBC Bank and Antwerp Diamond Bank of Belgium. While all parties involved do office in New York, the substantive issues and conduct have a greater relationship with Belgium than the United States, the judge wrote. (Read the full report: Lazare Kaplan RICO Decision). All of the activities related to the alleged misappropriation of Lazare Kaplan's diamonds by representatives of the banks along with the charges of money laundering, occurred in Belgium, the ruling noted. Secondly, although Antwerp Diamond Bank's New York office administered and extended a Lazare Kaplan credit facility in New York, the diamond company's relationship with that bank in Belgium dated back to 1988 before the bank even operated in New York. Carter questioned Lazare Kaplan's motive for filing the case in New York in the first place, but stated that the plaintiff is afforded a moderate level of deference because the lawsuit does have a bona fide connection to Manhattan, though it would not be convenient for defendants or the majority of available witnesses to testify in the U.S. Lazare Kaplan stated this past week that it was awaiting a decision from Belgium courts on whether the banks' request to dismiss the RICO suit against them would be denied.
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