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Lab-Grown Diamonds Shake Up Traditional Market Amid Pandemic’s Impact

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World's Second-Largest Diamond Discovered in Botswana

The global diamond industry is witnessing a dramatic shift in the demand for rough diamonds, particularly impacting the popularity of one-carat and two-carat solitaire bridal rings in the United States.

This transformation has been attributed to an increasing number of Americans opting for engagement rings adorned with lab-grown diamonds over their natural counterparts.

While diamond demand across various segments has softened in the wake of the pandemic, consumers have redirected their spending towards travel and experiences, while economic challenges have impacted luxury purchases.

The primary driver behind this price drop, according to industry experts, is the surging demand for lab-grown diamonds. The synthetic diamond industry has strategically targeted this price-sensitive consumer segment, reaping the rewards in the world’s largest diamond market.

It’s important to clarify that this shift doesn’t necessarily translate into deep discounts on engagement rings themselves. Instead, the impact is primarily felt in the rough-diamond market—an opaque realm inhabited by miners, merchants, and traders, several steps removed from the jewelry store price tags.

Nevertheless, the rapid and substantial decrease in prices for one of the diamond industry’s pivotal products has left the market in a state of upheaval.

The pressing question now is whether the diminishing demand for natural diamonds in this category represents a lasting change and, crucially, whether lab-grown gems will expand their presence into higher-priced diamonds, typically dominated by Asian buyers.

De Beers, a leader in the industry, attributes the current weakness to a natural downturn in demand following a pandemic-induced surge in prices when consumers were confined to their homes. While acknowledging some market share erosion by synthetic stones, the company views it as a cyclical, rather than structural, shift.

Paul Rowley, head of De Beers’ diamond trading business, stated, “There has been a little bit of cannibalization. That has happened, I don’t think we should deny that. We see the real issue as a macroeconomic issue.”

Lab-grown diamonds, identical in physical properties to their mined counterparts but produced in a matter of weeks in controlled environments, have long been seen as a potential threat to the natural mining industry.

Advocates argue that they offer a more affordable alternative with fewer environmental and social concerns associated with traditional mining.

For much of the past decade, this threat remained hypothetical, with lab-grown diamonds making limited headway outside of lower-priced gift segments. However, this is changing rapidly, as lab-grown products gain significant traction in the vital US bridal market.

To counter weakening demand, De Beers has responded by aggressively slashing prices for “select makeables,” rough diamonds ranging from 2 to 4 carats that can be cut into smaller, high-quality stones for bridal rings. Over the past year, De Beers has reduced prices in this category by more than 40%, including a cut of over 15% in July, according to insiders.

De Beers, historically a monopoly in the rough diamond market, typically resorts to aggressive price cuts as a last resort. The scale of the recent price drops for this benchmark product is unprecedented, according to industry traders.

In June 2022, De Beers was charging approximately $1,400 per carat for select makeable diamonds. By July this year, that price had plummeted to about $850 per carat. There may still be room for further price adjustments, as these diamonds remain 10% more expensive than their counterparts in the secondary market, where traders and manufacturers conduct transactions among themselves.

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Meta Fires Employees For Using Office Free Meal Vouchers to Buy Household Items

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Facebook Meta

The parent company of Facebook, Instagram, and WhatsApp, Meta, has allegedly relieved about 24 staff members at its Los Angeles office of their jobs.

The affected staff were accused of using their $25 (£19) meal credits to buy items such as toothpaste, laundry detergent, acne pad and wine glasses.

It was gathered that the dismissals followed an investigation that revealed the employees had been exploiting the system, including sending food home when they were not physically present at the office.

One of the terminated employees was an unnamed worker earning a $400,000 salary.

Another sacked employee anonymously shared on the messaging platform Blind, explaining how she and her colleagues maximized their dinner credits to buy other necessities when they could get food elsewhere.

The breach was discovered as part of the human resources procedure even though one of the workers admitted to it.

According to reports, employees who occasionally bent the rules received warnings but retained their positions.

Free meals have long been a benefit for employees of major tech firms like Meta, founded by Mark Zuckerberg.

Typically, staff at larger offices, including Meta’s Silicon Valley headquarters, enjoy complimentary meals from on-site canteens.

Employees at smaller locations receive daily food credits, redeemable through delivery services like UberEats and Grubhub, with allowances of $20 for breakfast, $25 for lunch and $25 for dinner.

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Flour Mills of Nigeria to Invest $1 Billion in Expansion and Restructuring Over Four Years

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flour mills posts 184% increase in PAT

Flour Mills of Nigeria Plc, a Nigerian diversified agribusiness company, has announced plans to invest $1 billion over the next four years to expand its facilities and restructure the company.

Chairman John Coumantaros, in an interview on Tuesday, said the new funding is about “doubling down on investment in Nigeria.”

This investment will further support President Tinubu’s reform efforts at a time when companies like Diageo Plc and Unilever Plc are exiting or reducing their exposure to the West African nation.

Since coming to power in May 2023, President Tinubu has introduced a series of reforms from allowing the naira to free float to fuel subsidy removal to make the country more attractive to investors and steer it away from fiscal collapse.

According to Coumantaros, $500 million of the total investment will go into its sugar operations in Niger state to boost production from the current 100,000 tons to over 400,000 tons a year.

An additional $100 million will be allocated to a cassava-processing factory to end imports of starch from the tuber and expand its breakfast cereal offerings.

The 64-year-old company will also undergo reorganization following an offer from Excelsior Shipping Company Ltd. last month to buy out minority shareholders at 70 naira per share.

The company plans to restructure its more than 22 units into five individual companies, Coumantaros said.

“We want to be able to attract technical and financial partners to help us grow our sugar operations and food business. We have a lot of ambitious plans for investment and expansion.”

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Allen Onyema, Employee Indicted in U.S. For Allegedly Obstructing Justice in Bank Fraud, Money Laundering Cases Slammed Against Them

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Allen Onyema Air Peace

Allen Onyema, the Chairman and Chief Executive Officer of Air Peace, a Nigerian airline, has been charged in a superseding indictment with obstruction of justice for submitting false documents to the United States Government in an effort to end an investigation of him in earlier charges of bank fraud and money laundering.

The United States government also charged alongside Onyema, his employee, Ejiroghene Eghagha, the airline’s Chief of Administration and Finance, for participating in the obstruction scheme, as well as in the earlier bank fraud counts.

In a statement issued by the U.S Government, the country’s Attorney Ryan K. Buchanan said the founder of the airline, accused of using his airline company as a cover to commit fraud on the United States’ banking system, has, along with Eghagha, who is a co-defendant in the fraud cases, allegedly committed additional crimes of fraud in a failed attempt to derail the government’s investigation of his conduct.

Robert J. Murphy, Special Agent in Charge of the Drug Enforcement Administration (DEA), Atlanta Division also revealed that through the diligence of US federal investigative partners, the alleged obstruction scheme of Onyema and Eghagha was revealed, making it possible for the defendants to be held accountable for their aggravated conduct of attempting to impede a federal investigation.

For Assistant Special Agent in Charge Lisa Fontanette, Internal Revenue Service – Criminal Investigation Atlanta Field Office, “These cases represent the continued commitment of the Drug Enforcement Administration to identify and hold accountable those who engaged in fraud and money laundering.”

“Allegedly, Onyema and his accomplices fraudulently used the U.S. banking system in an effort to hide the source of their ill-gotten money.

“Today’s superseding indictment is indicative of the dedication IRS-CI special agents and our law enforcement partners have, as part of the Organized Crime Drug Enforcement Task Forces, to neutralize threats to the United States from criminal organizations.”

“The charges announced today demonstrate the criticality of diligence and truth in criminal justice proceedings,” said Steven N. Schrank, Acting Special Agent in Charge, Homeland Security Investigations Atlanta that covers Georgia and Alabama. “HSI and our partners are committed to pursuing those who seek to exploit our nation’s financial system and any efforts to cover up illegal activity,” she added.

The statement obtained by Investors King explained how Onyema allegedly committed the bank fraud and laundered money running into millions of dollars. The statement reads “Onyema, a Nigerian citizen and businessman, is the CEO and Chairman of Air Peace, a Nigerian airline founded in 2013. Between 2010 and 2018, Onyema travelled frequently to Atlanta, where he opened several personal and business bank accounts. More than $44.9 million was allegedly transferred into his Atlanta-based accounts from foreign sources.

Beginning in approximately May 2016, Onyema, together with Eghagha, allegedly used a series of export letters of credit to cause banks to transfer more than $20 million into Atlanta-based bank accounts controlled by Onyema.

The letters of credit were purportedly to fund the purchase of five separate Boeing 737 passenger planes by Air Peace and were supported by documents such as purchase agreements, bills of sale, and appraisals.

The documents purported to show that Air Peace was purchasing the aircraft from Springfield Aviation Company LLC, a business registered in Georgia.

However, the supporting documents were allegedly fake – Springfield Aviation Company LLC was owned by Onyema and managed on his behalf by a person with no connection to the aviation business, and Springfield Aviation never owned the aircraft.

The company that allegedly drafted the appraisals did not exist. Eghagha allegedly participated in this scheme as well, directing the Springfield Aviation manager to sign and send false documents to banks and even using the manager’s identity to further the fraud.

After Onyema received the money in the United States, he allegedly laundered over $16 million of the proceeds of the fraud by transferring it to other accounts.

In May 2019, upon discovering that he was under investigation in the Northern District of Georgia for bank fraud, Onyema and Eghagha allegedly directed the Springfield Aviation manager to sign a key business contract, but also specifically told her to not date the document.

In October 2019, Onyema allegedly caused his attorneys to present that same contract, now falsely dated as being signed on May 5, 2016 (prior to the bank fraud that began in 2016), to the government in an effort to stop the investigation and unfreeze his bank accounts.

Allen Ifechukwu Athan Onyema, 61, of Lagos, Nigeria, and Ejiroghene Eghagha, 42, of Lagos, Nigeria, were indicted on November 19, 2019, on one count of conspiracy to commit bank fraud, three counts of bank fraud, one count of conspiracy to commit credit application fraud, and three counts of credit application fraud.

Additionally, Onyema was charged with 27 counts of money laundering, and Eghagha was charged with one count of aggravated identity theft. On October 8, 2024, they were both charged in a superseding indictment alleging an additional count of obstruction of justice and one count of conspiracy to obstruct justice. The case is criminal action number 1:19-CR-464.”

However, the statement noted that an Organized Crime Drug Enforcement Task Forces (OCDETF) including the Drug Enforcement Administration, Internal Revenue Service Criminal Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Federal Aviation Administration, Department of Commerce, and Department of Treasury are investigating the case.

It informed members of the public that the indictments of Onyema and his co-accused person only contain charges, adding that the duo Nigerians are presumed innocent of the charges and it will be the government’s burden to prove their guilt beyond a reasonable doubt at trial.

The statement further disclosed that Assistant U.S. Attorneys Garrett L. Bradford and Christopher J. Huber are prosecuting the case.

“This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF,” it concluded.

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