Carlsbad, CA – In Johannesburg, South Africa, a diamond trader recently bought three stones that were later found to have fake grading reports.  Aside from ensuring that diamonds are conflict-free, grading reports carry information such as carat weight, clarity, color, and cut.  They detail the value of the diamond based on internationally-accepted standards.

But these three diamonds turned out to be frauds.  At 3 carats, 4.08 carats, and 5.01 carats, these diamonds could have been worth hundreds of thousands to millions of dollars, depending on their characteristics.  At least one of them was proven to have been HPHT (high pressure, high temperature) treated, the process that makes lab-grown diamonds.  It can also take a very flawed diamond and make it clearer. Since the perceived value of lab-grown diamonds versus natural diamonds is far less, this dealer was set up to lose money.  Tests on the remaining two diamonds are pending.

The Gemological Institute of America (GIA) is one of the most respected diamond-grading facilities in the world, took quick action.  Investigation led to the arrest of one person so far.  The Diamond Dealers Club of South Africa released a statement that, “We join GIA in condemning unscrupulous parties who fraudulently sell treated diamonds without disclosure and sell forged grading reports”.  The GIA believes that the problem is not widespread.

The GIA is encouraging all gemstone-grading organizations to take measures to minimize the possibility of this happening again.  By offering an online report check, GIA lets gemstone buyers confirm that the diamonds they are getting match the reports in their database.  They can also send their reports and diamonds to a GIA lab to verify that they match, or simply send a diamond in for complete testing and a new report.

With all of the violence that has been caused by the illegal trade of diamonds, certain organizations—such as the Gemological Institute of America and the World Federation of Diamond Bourses—are taking the lead in prosecuting sellers of uncertified, untested gems. 

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