The court heard that IGL never even saw the diamonds it valued – it simply took whatever price they’d been sold for then added 20%.
This provided worthless valuation certificates designed to give investors the impression that they’d got a good deal. The judge ordered the company to be wound up in the public interest, along with a second operation, IGL Labs UK Limited, run by 40-year-old Noam Lenzini of London. He added that it was “inexcusable” that the company failed to disclose its accounts. Ramsey even admitted knowing that the diamonds were being sold at hugely inflated prices, prompting the judge to say: “Mr Ramsey must therefore have known perfectly well that investors would almost inevitably suffer loss through the transactions that Diffraction was facilitating.” The High Court was told how Diffraction supplied diamonds to other companies, which cold called members of the public claiming that they were a great investment as they were priced 20% below the retail value.īut the Government’s Insolvency Service proved that the fancy coloured diamonds – or FCDs – were being sold at mark-ups of between 220% and 745%.ĭeputy Judge Philip Marshall QC ruled: “There can be no doubt of the fact that Diffraction played a central and essential role in the sale of FCDs by brokers to the public as investments, and profited from such arrangements.” In fact, the Dubai operation, Diffraction Diamonds DMCC, was another version of UK company Diffraction Limited, which was liquidated in 2014.īoth were run by 40-year-old David Ramsey of Slough, Berkshire. If fraud is being committed it is on the part of the gem mine owners,not the show. But be aware, not all of their jewelry is hand-made. So that mark up pays for television time, salaries for hosts, designers and craftsman and any profit and charitable work. A diamond investment firm used two desperate arguments to try to avoid being shut down by the High Court.įirst, it claimed it had never ripped off anyone, blaming so-called brokers working for other companies.Īnd in case that didn’t wash, it argued that the UK courts had no authority because it was based in Dubai. You have a total of 156 wholesale cost in just the materials.
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