Six More Arrested in GIA Hacking Case

Six more people have been arrested in relation to the hacking of Gemological Institute of America (GIA) diamond-grading reports by outside parties as the investigation into the case continues.

A total of eight arrests have now been made as a result of cooperation between the GIA, the Indian authorities and Tata Consultancy Services (TCS), the contractor that supports GIA databases, according to a GIA statement January 26.

 In another development, the GIA has extended its submission date for the confirmation service for members of the trade concerned about the validity of their grading reports by two months to March 31, 2016.

Members of the trade with a GIA report originally issued between November 2014 and October 2015 who are concerned about its validity may submit the original report and the referenced diamond to any GIA location at no charge by the new deadline.

To date only 297 of 1,042 invalidated reports have been returned to the GIA. As of November 26, only 175 of the reports had been returned and two arrests had been made.

“It is imperative that all of the diamonds and their reports be returned to GIA to remove the fraudulently altered reports from the market,” the statement said.

De Beers first sight for 2016 is $540 million USD

 

 

De Beers Rough Diamonds

 

De Beers the sold $540m worth of diamonds in its first of sale of the year more than double the value of the sales achieved in the final sight of 2015. 

 

Prices for rough diamonds softened last year because of an oversupply of diamonds in the production centres forcing companies such as De Beers and Alrosa, to cut their supply of rough to the market in an effort to restore prices. 

 

Rough diamond demand broadened across the entire range as cutting and polishing factories began to increase their production. 

 

De Beers has said it will change the way it operates its sights to become more flexible and responsive to its clients. 

 

Source; DCLA

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Majority of Diamonds in GIA Hacking Case Still Not Returned

RAPAPORT... Only 175 of the 1,042 diamonds whose Gemological Institute of America (GIA) reports were invalidated last month following a hacking incident have been returned for examination, the organization said.

“It is imperative that all of the diamonds and their reports be returned to GIA for examination to remove the fraudulently altered reports from the market,” the GIA said in a statement November 25.

The diamonds’ color and clarity reports were changed by hackers. The GIA nullified the certificates and requested on October 23 that anyone in possession of any of the stones or reports return them immediately for a free examination. The group is offering a no-cost confirmation service through the end of January for any diamond grading report originally issued between November 2014 and October 2015.

The GIA continues to work closely with its database support contractor Tata Consultancy Services (TCS) and the Indian police to continuing investigating the case, it said. Two former TCS employees have been arrested and the client accounts through which the diamonds were submitted have been suspended.

Separately, 10 companies remain suspended by RapNet, the Rapaport Diamond Trading Network, pending further investigation. The members were also suspended by GIA for allegedly participating in the hacking scheme.

Lucara diamond miner recovered a 1,111 carat rough diamond

Lucara Diamond Corp has recovered a 1.111 ct diamond at the Karowe mine in Botswana.

The second largest gem quality stone ever mined is the most important discovery is recent history.

The diamond second only to the legendary Cullinan diamond, which was recovered in South Africa in 1905 and weighed 3,106.75 carats.

The 1.111ct rough diamond is a white Type IIa diamond considered the purest form of diamond.

Source: DCLA 

‘Harsh’ prison sentences given in bribery case

November 17, 2015

Antwerp--The Correctional Court in Antwerp handed down “extremely harsh” sentences and levied “substantial fines” against four diamond traders accused of bribing a grader at HRD Antwerp to give their diamonds higher color grades than they deserved.

The Antwerp World Diamond Centre (AWDC) announced the sentences via a press release circulated Monday titled “No mercy for those involved in certification fraud.”

On Tuesday, an AWDC spokesman said that the traders received up to 30 months in jail, 15 of which is effective immediately.

Although the AWDC is not releasing their names, the spokesman did reveal that three of the traders are from India--from Surat, Bhiwandi and Mumbai--and were managers of Belgian diamond companies. The fourth is from Sierra Leone.

The grader, whose name also is being withheld, received a “heavy” sentence as well, 18 months in jail, 9 of which is effective immediately, and a substantial fine in the case.

The AWDC did not have specific information on the amount of the fines. Judicial authorities in Antwerp could not immediately be reached for further comment on the case.

The HRD Antwerp grading bribery case dates back to March 2012, when news first surfaced that the lab fired a total of four graders for what it called at that time an “unprofessional act.”

That June, a total of four people--reported to be two diamond traders, an HRD employee and a “facilitator”--were arrested in connection with the case.

The AWDC said there is another firm allegedly involved in the case and that the public prosecutor in Antwerp is submitting an appeal to enable this firm to receive an “even heavier” sentence.

Antwerp acts with swift punishment, In stark contrast to the GIA, No action taken by GIA in their case.

HRD Antwerp corporate statement regarding the deliberate provision of incorrect diamond certificates by employees in 2012.

Last week, the Correctional Court of Antwerp delivered a verdict in  regards a case concerning the deliberate provision of incorrect diamond   certificates by employees in 2012. Following the verdict,  the Court    imposed severe sanctions on the involved parties including effective  incarceration, forfeiture of certain rights and substantial financial  penalties and compensations.  At the start of the process in 2012, HRD Antwerp and parent company   AWDC both have declared themselves civil party due to significant   reputational damage. Throughout this case, HRD Antwerp has had  full confidence in the investigation by the prosecutor's office but has  never been directly involved. The involved diamond companies and their representatives have  since been declared persona non grata and are no longer customers  at HRD Antwerp. The involved employees where immediately fired  due to severe professional errors. “HRD Antwerp fully supports the recent ruling of the Court in regards  this unfortunate case. It’s extremely important such violations do not  remain without consequences. The imposed sanctions are therefore  a strong signal towards the industry that such practices are not tolerated.  We like to thank our customers for their loyalty and confidence despite  this isolated case” says Peter Macken, CEO HRD Antwerp.