Last Thursday, Beny Steinmetz, an Israeli entrepreneur, was detained in Larnaca, Cyprus, following an EU arrest warrant initiated by Romania, the Globe and other media outlet reported. Steinmetz received a five-year jail sentence in Romania in Dec 2020 for his involvement in a vast real estate fraud, one of Romania’s biggest-ever corruption cases. Additionally, Steinmetz faced an 18-month prison sentence in Switzerland for bribing Guinea’s ex-president.
He is a diamond trader, commodity investor, founder, advisor, and indirect owner of Beny Steinmetz Group Resources (BSGR), a company primarily engaged in mineral resource mining in Africa and Eastern Europe and real estate trading.
The Romanian Beny Steinmetz Case
Post his 2020 conviction, Romanian officials sought Steinmetz’s detention in the EU through an Interpol red notice. However, this was later revoked, citing political motivations in the Romanian proceedings, as per an Interpol report. A European arrest warrant was also in place. Based on this, Greece arrested Steinmetz in December 2021 but declined Romania’s extradition request, citing due process violations.
The Romanian case revolved around a 2006-2008 land deal concerning properties nationalized during communism and efforts to reclaim royal assets. Steinmetz advised a firm that acquired land rights from a Romanian royal and was accused of fraud in the land restitution process. Although initially acquitted, an appeal found him guilty.
Steinmetz and his partner Tal Zilberstein were convicted in absentia in the Romanian Supreme Court after they were acquitted in a lower court and sentenced to serve 5 years in prison. Another businessman, Marius Markowitz, received 3 years probation. Interpol canceled its Red Notice as the authority believed the trial against him was politically motivated. Steinmetz has appealed his conviction at the European Court of Human Rights.
The Swiss Case
The Swiss case pertained to foreign official bribes. Steinmetz and associates were found guilty of bribing individuals close to Guinea’s President Lansana Konte with $8.5 million to secure a mining license in Simandou, a significant iron ore mine. Steinmetz’s Geneva-based company, BSGR, was deemed to have illicitly transferred bribe funds to President Lansana Conte and his wife, Mamadie Toure, in return for mining rights.
A representative for Steinmetz highlighted that the arrest warrant was nullified in countries like Greece and Italy. The Greek appeals committee rejected Romania’s extradition request in March 2022, citing Steinmetz’s right to a fair trial and potential inhumane treatment risks. Similarly, Italy also declined to enforce the European Arrest Warrant. Furthermore, Interpol withdrew its red notice, canceling the international arrest warrant against Steinmetz, identifying human rights and fair trial violations, and deeming the prosecution politically driven.
Steinmetz’s spokesperson said he looks forward to another European acquittal against Romania, known for its disregard for human rights. Steinmetz remains hopeful that the EU’s ethical and legal principles will triumph over Romania’s undemocratic actions in the Cyprus proceedings.
