Lazare Kaplan International Inc. (LKI) is a
diamond
Diamond is a Allotropes of carbon, solid form of the element carbon with its atoms arranged in a crystal structure called diamond cubic. Another solid form of carbon known as graphite is the Chemical stability, chemically stable form of car ...
manufacturing and distribution company based in
New York City
New York, often called New York City or NYC, is the List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...
. The Chairman of the Board of Directors is
Maurice Tempelsman
Maurice Tempelsman (born August 26, 1929) is a Belgian-American businessman and diamond merchant. He was the longtime companion of Jacqueline Kennedy Onassis, former First Lady of the United States.
Early life
Tempelsman was born on August 26, ...
. The first LKI was located in
Ponce, Puerto Rico
Ponce (, , , ) is both a city and a municipality on the southern coast of Puerto Rico. The city is the seat of the municipal government.
Ponce, Puerto Rico's most populated city outside the San Juan metropolitan area, was founded on 12 August 1 ...
, at , a community named after the factory was located there. LKI was founded in 1903 where it operated until it was moved to
Caguas, Puerto Rico in the 1970s.
Business activities
LKI's main business activity is cutting and polishing "ideal-cut" and "fine make"
diamond
Diamond is a Allotropes of carbon, solid form of the element carbon with its atoms arranged in a crystal structure called diamond cubic. Another solid form of carbon known as graphite is the Chemical stability, chemically stable form of car ...
s, which it sells to upscale retail jewelers throughout the world. Some of these diamonds are distributed loose while others are set in jewelry under the ''Lazare Diamond'' brand. LKI distributes its products through over 1,500 retail partners and customers in 29 countries.
Although primarily based in the United States, LKI also has sales offices in Belgium, Japan, China and Hong Kong. LKI has operated in Japan since 1973, Southeast Asia since 1987 and Latin America since 1997.
LKI's first factory was located in
Ponce,
Puerto Rico
Puerto Rico (; abbreviated PR; tnq, Boriken, ''Borinquen''), officially the Commonwealth of Puerto Rico ( es, link=yes, Estado Libre Asociado de Puerto Rico, lit=Free Associated State of Puerto Rico), is a Caribbean island and Unincorporated ...
. It became the largest diamond cutting and polishing factory in the United States. The company also has manufacturing operations in other parts of the world. It established a joint manufacturing partnership with
Alrosa (the Russian government-owned mining company), with cutting facilities in
Moscow
Moscow ( , US chiefly ; rus, links=no, Москва, r=Moskva, p=mɐskˈva, a=Москва.ogg) is the capital and largest city of Russia. The city stands on the Moskva River in Central Russia, with a population estimated at 13.0 million ...
and
Barnaul. In addition, it has contract manufacturing operations in China and Thailand. In Africa, LKI has manufacturing facilities in Botswana and a joint manufacturing and technical services agreement with
NamGem Diamond Manufacturing Company (Pty) Ltd in Namibia.
Company history
LKI was founded in 1903 by Mr Lazare Kaplan. The Tempelsman Group purchased a controlling interest in LKI in 1984. LKI has been publicly listed since 1972 and remains the only company specialising in diamond manufacturing whose shares are publicly listed on a US stock exchange (
American Stock Exchange
NYSE American, formerly known as the American Stock Exchange (AMEX), and more recently as NYSE MKT, is an American stock exchange situated in New York City. AMEX was previously a mutual organization, owned by its members. Until 1953, it was known ...
; stock symbol: LKI). It has been a
Diamond Trading Company
The Diamond Trading Company (DTC) is the rough diamond sales and distribution arm of the De Beers Family of Companies. The DTC sorts, values and sells about 35% of the world’s rough diamonds by value. The DTC has a combination of wholly owned ...
(DTC)
Sightholder
A sightholder is a company on the De Beers Global Sightholder Sales's (DBGSS) list of authorized bulk purchasers of rough diamonds. De Beers Group made this list, the second largest miner of diamonds. DBGSS was previously known as DTC (Diamond Tr ...
since 1946. In 1985, it became the first company to launch a branded diamond (the ''Lazare Diamond'').
Technical innovation
In 1919, Lazare Kaplan's cousin, mathematician
Marcel Tolkowsky
Marcel Tolkowsky (25 December 1899 – 10 February 1991), Obituary. an engineer by education, was a Belgian member of a Jewish family of diamond cutters from Poland. He is generally acknowledged as the father of the modern round brilliant ...
, first published the mathematical formula for diamonds cut to "ideal" proportions, a formula designed to optimise the brilliance, fire and sparkle in a polished diamond. In the same year, LKI became the first commercial-scale operation to cut its diamonds to ideal proportions. In 1957, LKI developed the modern oval cut, and in 1983 it developed and patented the laser inscription process. In 2002, LKI was awarded a patent, jointly with the
General Electric
General Electric Company (GE) is an American multinational conglomerate founded in 1892, and incorporated in New York state and headquartered in Boston. The company operated in sectors including healthcare, aviation, power, renewable energ ...
Company, for the high-pressure high-temperature (HPHT) process for improving the color of certain all-natural diamond types. In addition, LKI has secured numerous patents on diamond setting techniques and innovations in displays for loose polished stones and jewelry.
Missing diamonds and litigation
On May 17, 2010, Lazare Kaplan sued various
Lloyd's of London syndicates and European insurers for $640 million in damages arising from the disappearance of diamonds. The lawsuit alleges that the insurers breached two "all risk" New York property insurance policies.
In 2011, Lazare filed a
US$
The United States dollar (symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the official ...
1.5 billion
Racketeer Influenced and Corrupt Organizations Act (RICO) complaint in the US against
KBC Bank
KBC Group is a Belgian universal multi-channel bank-insurer, focusing on private clients and small and medium-sized enterprises in Belgium, Bulgaria, Czech Republic, Hungary, and Slovakia. It was created in 1998 through the merger of Kredietbank ...
, the largest bank in Belgium, after defaulting on a $45 million loan from KBC in a case about an alleged conspiracy to steal diamonds and money. According to KBC Bank's lawyers, Lazare chairman Maurice Tempelsman was involved, as was
Erez Daleyot
Erez Daleyot (born circa 1956) is a Belgian-Israeli diamond dealer, who may have once controlled one-third of all trade in diamonds worldwide. In April 2022 he was arrested in Zimbabwe for suspected tax evasion in South Africa.
Career Early care ...
, described as "a notorious diamond dealer who once controlled a third of all trade in diamonds". In 2019, KBC won a motion to dismiss the US case, considered to be a major win for the bank. Litigation in Belgium between KBC and Lazare continued.
A summary of the complex case involving LKI and KBC Bank was included in a 2020 KBC Base Prospectus, up to proceedings pending before the
Belgian Court of Cassation initiated by LKI on 2 April 2019. After ten years of litigation the Company Court of Antwerp, section Antwerp had not been able to decide on the merits of the case.
LKI has been suspended from trading on the American Stock Exchange since September 2009 and has not filed quarterly or annual reports with the
U.S. Securities and Exchange Commission
The U.S. Securities and Exchange Commission (SEC) is an independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929. The primary purpose of the SEC is to enforce the law against market ...
(SEC) since early 2009.
Ethical standards
LKI supports (and has helped develop) policies that prohibit the trade in
conflict diamonds
''Blood Diamond'' is a 2006 American political war action thriller film directed and co-produced by Edward Zwick and starring Leonardo DiCaprio, Jennifer Connelly, and Djimon Hounsou. The title refers to blood diamonds, which are diamonds mine ...
, prevent money laundering, combat the financing of terrorism, and promote transparency, fair dealing and disclosure throughout the diamond pipeline. It is LKI's strict policy to clearly identify its prospective suppliers and its customers before entering into any business transaction.
Kimberley Process Certification Scheme – LKI actively participated in the inaugural meeting of diamond industry stakeholders in
Kimberley, South Africa, in May 2000, and participated in all subsequent deliberations that led to the January 2003 adoption of the KPCS and its system of controls over rough diamond trading, intended to combat the trade in conflict diamonds. LKI has a zero tolerance policy with regards to conflict diamonds and will not import or export rough diamonds without an accompanying Kimberley Process Certificate of origin.
World Diamond Council Industry Self-Regulation – Established in conjunction with the KPCS, the WDC has established a system of buyer-seller warranties to extend the reach and effectiveness of the KPCS throughout the entire diamond pipeline. LKI trades only with companies that provide such warranties, guaranteeing the conflict-free origin of the diamonds on their invoices. All sales and consignments of LKI diamonds are accompanied by LKI's own warranty statement. This flow of warranties in and warranties out is audited and reconciled on an annual basis by LKI's financial auditors.
Zero tolerance for conflict diamonds – LKI follows a policy of zero tolerance for conflict diamonds as defined by
United Nations
The United Nations (UN) is an intergovernmental organization whose stated purposes are to maintain international peace and international security, security, develop friendly relations among nations, achieve international cooperation, and be ...
General Assembly Resolution 55/56 of 2000. The LKI system of controls was instituted before the existence of this UN Resolution, and received special commendation from the UN for its contribution to stemming the flow of conflict diamonds. All of LKI's rough diamond buyers are required to sign and abide by a written code of ethical diamond trading conduct as a condition of continued employment.
Trade association membership – LKI and its officers are members of a wide variety of diamond and jewelry industry associations including, but not limited to, the
American Gem Society
The American Gem Society (AGS) is a trade association of retail jewelers, independent appraisers, suppliers, and selective industry members, which was founded in 1934 by Robert M. Shipley.
The Society is based in Las Vegas, Nevada, along with th ...
, the Jewelers Vigilance Committee, the Jewelers Board of Trade, the Diamond Manufacturers and Importers Association, the Jewelers Credit Interchange Group, the Jewelers Security Alliance, the New York Diamond Dealers Club, and the Council for Responsible Jewelry Practices.
Best Practice Principles Assurance Program (a
Diamond Trading Company
The Diamond Trading Company (DTC) is the rough diamond sales and distribution arm of the De Beers Family of Companies. The DTC sorts, values and sells about 35% of the world’s rough diamonds by value. The DTC has a combination of wholly owned ...
program) – LKI subscribes to and is compliant with this program, which was developed to demonstrate to supply chain partners, consumers and other interested stakeholders that the exploration, extraction, sorting, cutting and polishing of diamonds, and the manufacture and sale of diamond jewelry is undertaken in a professionally, ethically, socially and environmentally friendly and accountable way.
Corporate citizenship policies
LKI supports and implements, within the scope of its influence, a set of core values in the areas of human rights, development, labor standards and environmental sustainability.
Social Accountability International (SAI) – LKI's primary factory in Puerto Rico was the first diamond polishing factory in the world to be certified by SAI for compliance with the highest standard of workplace norms, as measured by SAI's internationally recognized social accountability measuring system (
SA8000
The SA8000 Standard is an auditable certification standard that encourages organizations to develop, maintain, and apply socially acceptable practices in the workplace. It was developed in 1989 by Social Accountability International, formerly the C ...
). The SA8000 standard and verification system provides a credible, comprehensive and efficient measure of humane workplace practices and public responsibility.
UN Global Compact – In 2000, LKI became a founding member of the
United Nations Global Compact, intended to support universal environmental and social principles.
Global Sullivan Principles
– LKI endorses and subscribes to the Global
Sullivan Principles, a code of conduct designed to promote social justice, human rights and economic opportunity.
References
External links
*{{Official, https://lazarediamonds.com/AboutUs/Welcome
Description of LKI in the DTC Directory of Sightholders: ''El Taller de Corte y Pulido de Diamantes: otra joya en la historia de Ponce: La llamada 'Fábrica de Diamantes' era, como el mismo prestigioso mineral con el que trabajaban, algo deslumbrante, único hasta aquel momento, en un Puerto Rico fundamentalmente agrario y campesino.'' José Enrique Ayoroa Santaliz. La Perla del Sur. 29 December 2020.
Companies based in New York City
Manufacturing companies established in 1903
Diamond dealers
Diamond cutting
American jewellers