Investigation Into Fraudulent GIA Reports Continues in India

GradingSep 14, 2021

Investigation Into Fraudulent GIA Reports Continues in India

The lab said “most” of the diamonds paired with reports stating they were natural and untreated are actually lab-grown or treated diamonds.

Carlsbad, Calif.—Authorities in Surat, India are continuing their investigation into a scheme to pass off lower-quality natural and lab-grown diamonds as more valuable natural stones by using fraudulent GIA reports and fake inscriptions. 

In mid-August, The Times of India reported that police in Surat detained a diamond trader and seized 24 GIA reports and five lower-quality diamonds inscribed with numbers that matched five reports for higher-quality stones. 

Authorities also seized the laser machine believed to have been used to inscribe the stones with fraudulent report numbers, The Times reported. 

In a statement issued Monday from its headquarters in Carlsbad, GIA said police in India asked its lab there to aid in the investigation. 

What GIA India determined is that some of the reports were legitimate GIA reports—The Times said the diamond trader obtained reports from business associates of his who provided them without diamonds—while some were counterfeits that used legitimate GIA report numbers. 

The lab also determined “most” of the diamonds paired with reports stating they were natural, untreated stones were actually treated or lab-grown diamonds.

“GIA India is continuing to cooperate with local authorities,” the lab said. “In addition, GIA India requested police conduct the necessary investigations and take the necessary steps to identify and arrest the perpetrators of these malicious acts against GIA and the innocent people who this fraud may have deceived.” 

 Related stories will be right here … 

This “unfortunate” situation in India also underscores the need to have GIA update the diamond grading report before completing a purchase, particularly when the buyer doesn’t know the seller very well, GIA added.

The counterfeit inscriptions that turned up in India recently are the latest in a string for GIA.

An article in the Lab Notes section of the fall issue of “Gems & Gemology” detailed how graders at the GIA lab in Johannesburg, South Africa caught three moissanites inscribed with GIA report numbers for natural diamonds.

Another case was reported in February, this one involving lab-grown or treated natural diamonds inscribed with report numbers for untreated natural stones that had been submitted to various GIA labs worldwide.
Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

EditorsSep 27, 2021
4 Takeaways from the First HardRock Summit

Senior Editor Brecken Branstrator shares insights from the show, including what people have been buying and where it could go from here.

CollectionsSep 27, 2021
Gabriel & Co. Launches Men’s Collection

The fine jewelry design company has a dedicated men’s fine jewelry collection and a men’s wedding band array.

Lab-GrownSep 27, 2021
RJC Is Developing a Standard for Lab-Grown Diamonds, Gems

It will be for all companies that deal in lab-grown materials.

Brought to you by
Bringing Sexy Back: The Allure of COUTURE, Italian Style

Take a tour of Italian designers at COUTURE 2021.

CollectionsSep 27, 2021
BaubleBar’s New NFL Collection Brings Sparkle to Team Spirit

The licensed collection features jewelry inspired by all 32 NFL teams.

Weekly QuizSep 23, 2021
This Week's Quiz
Test your knowledge of jewelry news from the week of Sept. 20-24, 2021.
Take the Quiz
MajorsSep 24, 2021
Brilliant Earth Is Now a Public Company

CEO Beth Gerstein said she believes in the jeweler’s omnichannel approach as its retail rollout continues.

Events & AwardsSep 24, 2021
These 3 Companies Will Receive Business Grants from PGI USA

PGI created the program to accelerate the growth of the platinum jewelry market in the U.S.

Brought to you by
What is your Health Care Coverage Strategy?

Health care coverage is a big expense for small businesses - find out how to lower costs long-term instead of every 12 months.

CollectionsSep 24, 2021
Zales Introduces Elvis Presley Men’s Jewelry Line

From its curb link chains to statement diamond rings, the new collection takes inspiration from the “King of Rock ‘n’ Roll.”