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DMIA continues call for prosecution in 'Certifigate'

By Michelle Graff
March 18, 2008

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New York—Leaders of the Diamond Manufacturers and Importers Association of America (DMIA) have again expressed their frustration at the lack of action by prosecutors in the Gemological Institute of America's (GIA) "Certifigate" scandal.

The alleged scandal at the GIA surfaced in 2005 and involved GIA graders taking bribes to upgrade diamonds.

Leaders in the diamond industry have long expressed dismay over the lack of progress in the case, which has become a hot topic again in the diamond community in recent months.

At the DMIA's first meeting of the year held on Monday night in New York City, DMIA President Ronald Friedman read excerpts from a February 2008 letter that DMIA officials sent to prosecuting attorneys in the case. The letter stated, in part, that the DMIA was "shocked and dismayed" at the scandal and remains concerned about the effect the scandal could have on public confidence in diamonds and the diamond industry.

The DMIA letter stated that officials also are concerned that the investigation of the GIA case has been "prioritized" by other investigations.

DMIA leaders "strongly encourage" prosecution of any or all wrongdoing in the case, including those individuals accused of bribery and fraud.

The DMIA "will welcome news of their indictment, arrest, prosecution" for their crimes, the letter stated.

Also at Monday's meeting:

* Dione Kenyon, president of The Jewelers Board of Trade (JBT), gave an update on the JBT's new Memo Reporting Platform, a way for companies that release stones on memo to get real-time information about the current memo status of companies with which they are doing business. Kenyon said a test run is expected in the second half of 2008, and the speed of implementation will depend on industry interest in the program.

* Friedman offered attendees the opportunity to speak out about the recent changes to the Rapaport price list, and said Rapaport Group Chairman Martin Rapaport asked for anyone with feedback about the changes to e-mail him at rap@diamonds.net.
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