Story Behind the 6.18-ct Diamond Fraud

Our recent news story about a fraudulent six-carat diamond prompted something of a reaction. The stone was presented to IGI's lab in Bangkok for verification. But it turned out not to be the mined gem described in the accompanying certificate.  It was actually a lab grown of the same carat weight, which had been cut and polished with "meticulous precision" to look like the real thing.
"What I don't understand is why isn't the company and / or the person identified openly? Why keep it a secret," asked one of our subscribers after we posted the story.
"Those people/ company's ruin our reputation. Everybody should know they are a fraud," said another.
So here are some answers, courtesy of Roland Lorie, CEO of IGI.
The stone was submitted for grading by potential buyers, people within the industry, who wanted to check the spec, because it seemed too cheap.
The 6.18-ct round brilliant D-color, flawless clarity, triple excellent cut gem, was being offered for "$300,000 to $350,000", said Roland.
"People like to have a second opinion, especially when the price seems suspicious, so the potential buyers came in for a double verification."
The first thing his labs do is to check the weight, which matched. The second thing they do is to check the identity. It failed. The natural diamond was very obviously a lab grown.
Which begs this very obvious question: If labs can so readily spot a lab grown, and if double verification is so common, especially for high-value stones, why would a disreputable dealer even attempt such a deceit?
The most likely answer is that the fraud was aimed at a trusting consumer, rather than someone more streetwise within the industry.
The impostor stone was a good replica, but not a perfect match. It was E-color rather D, and VS1 clarity rather FL. It had been fraudulently laser-inscribed with a GIA number - the lab that graded the genuine stone.
"We contacted the customer and told them what we'd found. We are not the buyer or the seller or the police, just a lab identifying a stone.
"Our job is to tell the customer what it is. We are not there to judge what happens next. The laser inscription bonds it to another certificate so we put crosses over the inscription, over-write it as lab grown and hand it back to the potential buyer." This was a condition to give the stone back and the customer agreed.
Last month another lab, GIA, highlighted a similar case, though not so big. A 3.075-carat lab-grown was submitted for update at its Antwerp lab, bearing the girdle inscription of a 3.078-carat natural stone. It was a close match at first glance, but was H-color rather than G, and VVS2 rather than IF.
GIA received another diamond purporting to be a 1.50362-carat, VVS2, E-color, Type I natural diamond with an excellent cut grade. It turned out to be a lab-grown diamond weighing 1.51212 carats, VVS2, D color, and Type IIa with a very good cut grade.
But such cases are rare, possibly because those within the industry are likely to check.
Screening for lab growns, as loose stones or in jewelry, has become commonplace in grading labs since they started to gain a market share.
"In the beginning we saw a lot of mixing - either as fraud or by accident - but not so much now, especially in 30 pointers and above because people know that labs will spot it," said Roland.
"Companies know we are checking. In Antwerp we screen 20,000 carats of melee a month for the most prestigious jewelry brands, which request tolerance zero.  We need to ensure no lab growns get through because manufacturers can't afford to make a mistake. The biggest threat is in mixing of small goods."
Labs also screen parcels for manufacturers who pride themselves on using only lab growns - to make sure no natural stones have accidentally been mixed in.
A final, and personal observation on the six-carat lab grown: Don't turn a blind eye. The potential buyers may have been acting in good faith - but the moment they become aware of an attempted fraud they are obliged to inform. 

Have a fabulous weekend

The IGI certificate identifying the diamond in question as lab grown