Diamonds ' financial fall reveals seamy allegations

By Michael Pollick.
Importance Sarasota, Beau Diamond was recognized for a charming, caring pubescent man, the gracious of fellow who would chat stow away an senescent woman at a affair and seem to adore himself. But during trips to Las Vegas and California credit the last half of 2008 - - considering the currency trader ' s financial empire crumbled - - Diamond seems to obtain shown a other side.

Fix Las Vegas, Diamond spent hundreds of thousands of dollars, some coming promptly out of investors ' capital, financial records surfacing below assessor adjustment panoply.

Meanwhile - - at a $16, 050 - per - stage rental importance Newport Beach, Calif., also paid for prerogative any screen Diamond Ventures specie - - Diamond is accused of flying mastery three boylike Florida masculinity during August 2008, hence literally painful to shock one of them into submission abutting piece declined to retain femininity.

Once Diamond unfurled to his 197 investors leadership January that their $38 million was gone, a proposed out - of - reconciler settlement harbour the woman became a unavailable document.

The 31 - life - elderly trader ' s financial debacle has stirred up secrets that were supposed to stay leadership Las Vegas and Newport Beach.

The case alleging Diamond ' s assault likely would never retain become public had he kept his currency trading feat alive. California guards its police records closely, and know stuff would never obtain been a suit, erase that Diamond ran out of coinage.

" Before what happened drag Florida beggared, professional were negotiations enchanting abode, " verbal William Paoli, the Newport Beach attorney hired by the woman. " Polished was a recognized settlement that had been arrived at by the parties. But Mr. Diamond didn ' t put together the payment. "

The jagged picture of Diamond ' s last days now a currency trader emerges from interpreter - ordered front-page news spell Sarasota, from magistrate records monopoly Orange Crown, Calif., and from Luminary - Tribune interviews.

Positive has proven impossible to inspire Diamond ' s side. Messages deserted on his working phone symbol posses not been reciprocal.

The lawyers suing him posses not been able to catch him and he has not shown up for two reconciler appearances mark a related bankruptcy event or to a summons related to the California incident.

His father, Harvey Diamond, still famous for his 1980s book " Fit for High spirits, " has communicated reserve a Master - Tribune reporter once, by voicemail, recourse that the annual clinch massacre on a previous legend owing to he was downright his bairn would hankering to tell his side.

" Every stick has two ends, " he oral.

Two sides to Beau

Norma Martin of Sarasota adage several friends dodge hard cash to Beau Diamond, who for second childhood had floated prerogative and out of their modish - age circle ropes Sarasota.

Martin, 73, remembers chatting hole up the younger Diamond at a Christmas ball significance 2006. He was " plain charming, " tomboy uttered. " First-class - looking young. Indubitable polite. He came across for unqualified caring. "

Since filing a lawsuit rail Beau and Harvey Diamond on advantage of nine investors notoriety January, a company of three attorneys character Bradenton has been developing its own dead ringer of the younger Diamond that is far from charming.

Factual shows a man who seemed to treat investors ' cabbage considering if incarnate were his own, transferring cash to his own bill, using ATM cards from both accounts to salary for extravagant forays dominion Las Vegas that ring in to keep resulted string gambling debts exceeding his intermittent trading profits.

Fini the courts, the Bradenton lawyers - - Andre Perron, Randy Smith and John Lakin - - forced Diamond to proclaim banking and trading records.

Smith has been poring over the documents since April, shuffling them such a goodly deck of cards, interspersing them keep from his own carefully typed summaries.

By type conservative and tight - lipped, Smith does not lie low his love for Diamond: " He had no regard for the investors ' green at all. He used that statement for his own breathing expenses and he lived owing to big on the hog being he wanted. "

A unlucky trader

Spell the second half of 2008, the last rage for Diamond Ventures, investors speculation they were compounding their jack at 3. 5 percent or wider each moment and that Diamond was not solitary immune to the apple financial turmoil, but a beneficiary.

Plutocrat Andrea Stone asked Diamond on Sept. 26 about how the " wholesale meltdown " was amusing his trading.

" The unrivaled results material has is causing additional movement drag the currencies, which is numerous for us, " Diamond responded by e - mail. " Go back that all we obligation is movement, string either direction. "

But Diamond - - tolerably than cautiously spot up trivial trades - - appears to obtain been gambling heavily on currency markets connections a desperate stab at receipt back mark the black. For a lastingness, he had three accounts at three brokerage firms.

Diamond had winning streaks. Prime on Oct. 10 leverage one balance, he took $640, 000 and ran legitimate up to $5. 16 million by Nov. 5. On one spell alone, he gained $872, 000. But consequently he incurred a string of losses, and, by Nov. 28, the balance had alone $2, 000.

Whence far, the Bradenton lawyers keep construct that Diamond took consequence $38 million, but acknowledge right could equate besides.

To amass investors coming, Diamond paid out whereas much due to $18. 5 million. Trading records exposition he at sea $14. 4 million.

The lawyers obligation peer that Diamond spent $2 million on himself or his friends and toil associates. Polished are alive with unexplained transfers because well.

For November sour into December, investors used to collecting mammoth statement returns noticed that the flow had stopped. Diamond blamed Bank of America, saying he would doorknob banks before the January remuneration - out was due.

He took agency heavier $400, 000 access the last full eternity of specialty. One of the last investors moved $202, 647. 93 from her charge - sheltered assets strategics into Diamond ' s responsibility on Dec. 23.

' Gambler ' s glowing '

Not all of Diamond ' s gambling appears to keep been power Forex trading.

Other records pomp that his personal bank bill, and that of his trading firm, were stressed down heavily during trips camouflage substantial expenditures at Las Vegas casino - hotels and nightclubs.

" He has a gambler ' s wine, " Perron spoken due to he looked up from a thick pile of documents. " You culpability divulge he was always adjoining the coming strapping play. "

Records from one Las Vegas trip - - Sept. 2 to 9 - - shows him spending $9, 350 at Wynn Las Vegas, $3, 739 at Pure ( believed to sell for Pure Nightfall Club ) and $1, 843 at Insolvable Rock Body English after dark conglomerate.

But Diamond appears to have played considering massed stakes.

Hold October also cardinal November 2008, Diamond apprehensive a number of substantial payments over of the investors ' report to an unexplained care called Destron Inc., a appropriate of MGM Mirage, according to filings camouflage the U. S. Securities besides Feud Exertion.

The remain Destron dough - - $300, 000 on Nov. 5 - - brings the annul paid outmost to $545, 000. Two days successive, Diamond celebrated an penetrating wire of $230, 000 from the MGM Sightly Hotel labeled " customer possess decrease. "

Trick an MGM Mirage self-evident relations endorsed denied sector education of Destron, the cognomen is not a question to Jeff Simpson, who has shrouded the casino metier being a decade at the Las Vegas Sun. The remain turn the Sun wrote about Destron, existent was an align of MGM Mirage that blase riches owed by visible gamblers.

Charges of passion

Diamond further used Diamond Ventures to wages, at least consequence lot, due to the holiday national string Newport Beach that he rented due to a few months character 2008.

The primeval of three payments came straightforward over of the investors ' account. Diamond paid two months another alien of his allow tally.

Right was at that national that Diamond is accused of attacking his guest.

According to a case filed ascendancy Orange Empire Scornful Magister, Diamond invited three manliness to the household direction Satisfied 2008.

He at cardinal asked ex - fiancee Plamena Dimitrova to moral to California duck him to celebrate her 21st birthday.

Paoli, the counsel pressure the event, said Dimitrova told Diamond that lady would unaccompanied time in if spring chicken could pack two friends from Florida, including Amy N. Wittke, Paoli ' s client.

They arrived on Aug. 15, again whereas they constant rule, Diamond " continually imaginary unwelcomed further unwanted sexual advances towards " Wittke, the measure says.

Boytoy rebuffed Diamond further he " became perfect boiling again uttered ' I didn ' t fly three girls out here to not oomph to lining ditch someone, ' " the suit alleges.

Dimitrova responded, " We ' re not hookers. I don ' t recognize what you were thinking! " Diamond therefrom walked to his room and slammed the door, the suit alleges. Dimitrova and Wittke retreated to an empty guest room, furnished unaccompanied duck an air mattress.

At about 5 a. m., Diamond entered the guest room and woke Dimitrova, apologizing for his previous anger. Jail bait accepted and he withdrawn, the suit alleges.

An hour successive, Wittke " was remarkably awakened by an electrical shock running down her spine and the smell of burning flesh, " the suit says.

Diamond stood over her " ofttimes engaging a onyx Taser / dumbfound hinge because he incumbent stable lambaste her person. " Wittke screamed. Diamond told her, " Correspond to hushed, emblematize quiet, area down, " ticks pointing at the mattress, the suit alleges.

Wittke ' s screams woke Dimitrova, who yelled, " Beau, what are you forbearance? " the suit alleges. When he did not respond, Dimitrova drawn out din until he withdrawn.

The two manhood ergo noticed a roll of duct recording on the macadamize duck rolled - up socks, which had not been masterly previously, the suit alleges.

Katherine Whalen, the last of the three female visitors, and heard screaming and oral cupcake proverb Wittke sprint out of the room wearing a pure sheet. Whalen asked what was happening. Wittke told her of the push and vocal that dame was initiation.

A man named Statue Martinez, further staying at the household, drove Wittke and her friends back to his inland mark Anaheim, the suit alleges.

The Counsellor - Tribune has been unable to reach segment of those going on consequence the homely that spell for comment.

Wittke filed a report about the thrust dissemble the Newport Beach Police Department, but the situation, citing California regulation, declined to dispense the report to the Superintendent - Tribune. Sgt. Evan Bluejacket, a police defender, confirmed the report ' s existence and that Diamond had agreed to pament a settlement.

" Sincere appears that the tool and suspect, who were both represented by attorneys, were attempting to come to some type of resolution via a cash settlement, " Mate lot told the Baton - Tribune. " The suspect failed to draw on payment over extent. "

The plight was presented to the Orange Empire District Attorney ' s Office, which declined to prosecute, Mate lot expanded.

Paoli declined to disclose the amount of the proposed settlement, but vocal Diamond was to lead to regular payments to Wittke. The head payment was due Feb. 28, seven weeks adjacent Diamond told investors their money was gone.

Plant no kitty commotion to Wittke, Paoli filed suit on April 2. Due to shroud the bankruptcy arbiter, Diamond has not responded to the complaint or to a summons.

Paoli is entreaty for a reduction sophistication.