Werner von Clemm

Werner Conrad Clemm von Hohenberg
Born	Template:Birth date
Died	April 14, 1989(1989-04-14) (aged 91)
Occupation(s)	Financier, banker
Known for	Connections to the Nazi Party, America First Committee, diamond smuggling scheme

Werner Conrad Clemm von Hohenberg (born September 27, 1897 – died April 14, 1989) was an American financier of German aristocratic origin, known for his connections to the Nazi Party and influential American families. His father-in-law held the position of Vice President at Citibank. After serving in the Imperial German Army during the First World War, Werner immigrated to the United States in 1922. He acted as a representative for Hardy & Co., a German international banking firm, and was employed by Pioneer Import Corp., which specialized in importing German products and managed the champagne enterprise of his cousin, Joachim von Ribbentrop, who was also a Nazi diplomat.

Werner collaborated with his twin brother, Karl von Clemm, forming a partnership with American businessman William Rhodes Davis. Werner assumed the role of Vice President at Davis & Co., a company responsible for shipping large volumes of oil to Germany. Additionally, he functioned as a financial advisor and propaganda coordinator for the America First Committee, advocating for U.S. isolationism. His residence was a sprawling 130-acre estate located in Syosset, New York.

In 1940, Werner masterminded the covert importation of diamonds confiscated by the Nazis from Belgium and the Netherlands into the United States. This operation bypassed neutrality restrictions by channeling shipments through various European cities and South America before arriving in New York. Payments were routed through Imico-Handel, a Berlin bank, ultimately benefiting the German government. Between October 1940 and February 1941, six such diamond consignments were executed under this arrangement. Treasury officials uncovered this scheme after inspecting a Budweiser beer crate containing correspondence that detailed the smuggling activities.

Investigations revealed that diamonds originating from Belgium were sent to Imico in Berlin, approved by German military authorities, then forwarded via Portugal to buyers in New York. These purchasers paid through a New York financial institution into Imico’s Berlin account. Federal agents determined that these funds supported Nazi propaganda efforts within the United States. Werner was arrested on January 28, 1942, facing charges of conspiracy related to false import declarations; three other individuals, including Karl von Clemm, were indicted in absentia. The government froze Werner’s holdings in Pioneer Import Corp. and confiscated $400,000 worth of gems, which were later auctioned for more than $1.3 million.

During his trial, Werner asserted that he operated a legitimate import business, having brought in $2.2 million worth of German merchandise over four years, including $552,000 in diamonds. Despite his defense arguments, both he and Pioneer Import Corp. were found guilty in August 1942 after only ninety minutes of jury deliberation.

U.S. District Judge James Patrick Leamy harshly criticized Werner’s allegiance, emphasizing that every dollar sent to Germany contributed to heinous acts. Werner received the maximum penalty: two years’ imprisonment and a $10,000 fine; Pioneer Import Corp. was also fined $10,000. Following his release from prison, Werner transitioned into private banking. His son, Michael von Clemm, rose to prominence as an American banker engaged in West African financial ventures and played a key role in establishing Canary Wharf.

After World War II concluded, Werner sought restitution for confiscated stocks and seized gemstones but was denied compensation by federal authorities on the basis that he acted as an "enemy agent." His appeals throughout the 1950s to 1970s were unsuccessful due to substantial evidence against him and his ongoing connections with Germany after America’s entry into the war.