A massive diamond embezzlement scam was revealed by police on Monday after a 41 year-old man from Rishon Letzion was arrested on Sunday for attempting to fraudlently take possession of stones worth $35 million. Police say the suspect and another man, apparently his brother, received the diamonds from an American company for the purpose of marketing them. They allegedly defrauded a South African diamond firm, whose owner lodged a complaint with police during his current visit to Israel. According to the business arrangement, the suspect was supposed to transfer money he received for the diamonds, minus the commission he was permitted to charge for his work, to the company. But the suspect reneged on his promise, police say, and despite repeated attempts by the company, the man and his partner refused to return the diamonds or their value in cash. During one meeting between the suspects and the company, the men handed over a box they said contained the diamonds. The box proved to be empty. The Rishon man and his brother, who were not named, are the owners of an Israeli subsidiary of a New York-based diamond company. The brother is reportedly abroad. Israeli and New York authorities are working in close cooperation on the case.