Above: Rabbi Joseph "Diamond Joe" Gutnick
Chabad’s Rabbi Diamond Joe Gutnick Loses Multimillion Dollar Lawsuit
Shmarya Rosenberg • FailedMessiah.com
Australian Chabad mining mogul Rabbi Joseph “Diamond Joe” Gutnick and his company Legend International Holdings owe $40.4 million plus interest to an Indian fertilizer company after an Australian court upheld a Singapore arbitration ruling against Gutnick and Legend, The Age reported.
Those Singapore arbitrators found Gutnick "induced, by fraudulent misrepresentation, certain purchases of shares in Legend International Holdings," and thereby deceived Indian Farmers Fertiliser Cooperative (IFFCO) and its subsidiary Kisan International Trading.
Gutnick – the late Chabad-Lubavitch Rebbe Menachem Mendel Schneerson’s personal representative handpicked and personally appointed by Schneerson to thwart a land for peace agreement in Israel – has a checkered financial past including what some say was a pump-and-dump stock fraud that left many Chabad ba’al teshuvas with large financial losses. Even so, Chabad has never officially distanced itself from Gutnick.
Gutnick now personally owes $28.05 million plus interest – which will likely be substantial because the money has been owed IFFCO for several years.
Gutnick and Legend refused to pay the Singapore arbitration judgement after it was issued on May 7, sparking the Australian court case.
Gutnick’s and Legend’s lawyers argued upholding the Singapore arbitration ruling meant IFFCO would receive "double payment" by getting their money back while being allowed to retain the shares in Legend International – shares the arbitrators found IFFCO and its subsidiary were deceived into purchasing.
Judge Clyde Croft reportedly ruled lawyers for Gutnick and Legend had failed to prove a “double payment” would exist if Gutnick and legend were forced to pay IFFCO.
Gutnick reportedly plans to appeal.
[Hat Tip: BeenThereDoneThat.]