Through a series of legal actions initiated in three countries, the Gemological Institute of America (GIA) has halted an international operation that was using counterfeit GIA Diamond Grading Reports to support diamond sales, chiefly via the Internet.
GIA filed a lawsuit in Chicago alleging counterfeiting against Israeli citizen Moti Weisbrot, the leader of the counterfeiting activity, and others who participated in the activities by either producing counterfeit reports or agreeing to sell diamonds accompanied by the counterfeit documents.
GIA is obtaining permanent injunctions against the participants in these actions, thereby stopping the counterfeiting activities. GIA also filed a counterfeiting lawsuit against Weisbrot in Israel. Additionally, GIA initiated a criminal prosecution against Weisbrot in Italy.
The legal actions were the culmination of an exhaustive process, involving GIA's team of attorneys and investigators and a number of law enforcement agencies that began in late February based on tips from sources inside and outside the gem and jewelry industry.
To GIA's knowledge, a relatively small number of diamonds were used in the actual scheme. It is important to note that all the diamonds sold with these counterfeit Grading Reports were clarity enhanced. As a policy, the GIA Gem Trade Laboratory does not grade clarity-enhanced diamonds.
Thus, not only were the documents counterfeit, but they represented diamonds that would not have received a GIA Diamond Grading Report in the first place. GIA President William Boyajian said, "The public places great trust in the accuracy and integrity of GIA Diamond Grading Reports, and we go to great lengths to preserve that trust.”
“The counterfeit reports in this case were intended to add value to clarity enhanced diamonds by manipulating the public's reliance on the GIA report. We took these legal actions in keeping with GIA's mission to protect the interests of both the public and the gem and jewelry industry," he added.
Donna Baker, vice president, general counsel for GIA, noted, "We thank our attorneys and investigative team, and the law enforcement authorities, for their diligence, sound judgment and timely efforts in thwarting this counterfeiting operation.”
“GIA will maintain its vigilance against illegalities that could harm the best interests of the public or damage the Institute's reputation, and we will consider strong legal action whenever warranted in upholding these standards."
All of GIA's Diamond Grading Reports and other Laboratory reports incorporate security features that exceed document industry security guidelines. These include a hologram, security screen, microprint lines, chemically sensitive paper, and other proprietary security components.
Clarity enhancement refers to the practice of filling the fissures that may be present in a diamond with a solid substance, such as a glass, that reacts to light in ways similar to diamond. As a result, the fissures become much less visible, which improves the apparent clarity of the diamond.
An independent nonprofit organization, the Gemological Institute of America (GIA) is recognized as the world's foremost authority in the grading and identification of diamonds, gemstones and pearls. Established in 1931, GIA has translated its expert knowledge into the most respected gemological education available.
In 1953, the Institute created the International Diamond Grading System(TM), which today is recognized by virtually every professional jeweler in the world. Through research, education and gemological laboratory services, the Institute is dedicated to protecting the interests of both the public and the jewelry industry alike. GIA has 13 locations worldwide, with its headquarters in Carlsbad, Calif. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
