CollectionsApr 25, 2025
Sylvie Looks to Water in New Sculptural Bridal Collection“Shell Auranova” is the next generation of the brand’s bridal line, featuring half-bezel engagement rings with bold and fluid designs.
CrimeMar 27, 2017
Former Lab-Grown Diamond Co. Exec Accused of Embezzlement
Edward S. Adams, 64, allegedly stole millions from investors in Apollo Diamond Corp. and its successor, Scio.
Minneapolis--A former executive of two synthetic diamond companies is facing federal fraud charges for allegedly embezzling millions from investors who thought their money was being used to buy diamond growing equipment.
The U.S. Attorney’s Office in Minnesota announced last week that 64-year-old Edward S. Adams of Minneapolis is charged with eight counts of mail fraud and six counts of wire fraud in a scheme that dates back to 2006 and involves both Apollo Diamond Corp.--which was founded by his father-in-law, Robert Linares--and its successor, Scio Diamond Technology Corp.
Also revealed by the U.S. Attorney’s Office in a news release about the indictment: Adams is a professor of law.
Richard T. Thornton, FBI special agent in charge of the bureau’s Minneapolis Division, expressed shock and disappointment about the charges. “The defendant’s brazen theft of millions of dollars of investors’ funds over the course of several years is compounded by the fact that he holds positions of public trust as an attorney and law-school faculty member.”
Adams became involved with Apollo Diamond Corp., a lab-grown diamond company based in Boston, in 2003 through his father-in-law, Linares.
According to the U.S. Attorney’s Office, Adams held various positions at Apollo, including chief financial officer, secretary, executive vice president and general counsel. The company tapped his financial services firm, Equity Securities Inc., to provide investment banking services and raise money for the company.
Equity Securities raised more than $25 million for Apollo and received about $4 million in commission.
After that, Adams continued to handle financial matters for the diamond grower, with “minimal oversight” from the board of directors, the U.S. Attorney’s Office said.
According to the indictment, Adams opened multiple bank accounts between 2006 and 2009 that were not authorized by Apollo and to which only he had access. He also directed the account statements to his personal address.
He told investors that they could purchase shares in Apollo by making their checks payable to the accounts he controlled, promising that their money would be used to buy more diamond growing equipment and to fund research and development. Instead, the U.S. Attorney’s Office alleges, he embezzled funds, diverting money for his own personal use and depositing some in his law firm’s bank account.
By 2010, Apollo was teetering on the brink of collapse due in part to Adams’ fraud.
To prevent his theft from being discovered in bankruptcy litigation, he allegedly devised a
scheme to appease shareholders by convincing them to shift their investment to a new lab-grown diamond company, Greenville, South Carolina-based Scio Diamond Technology Corp.
Scio was created by Adams and his former law partner, whom the indictment references as “M.M”--Michael Monahan.
According to the U.S. Attorney’s Office, Adams’ theft continued after he started Scio.
All told, he is alleged to have stolen more than $4 million over the years.
Adams, along with his father-in-law and Scio board member Theodorus Strous, were forced out of Scio in June 2014 via a campaign organized by disgruntled investors called “Save Scio.”
In a statement released following the indictment, Scio said its current board of directors and management team have been cooperating with the Department of Justice in its investigation as well as a separate one with the Securities and Exchange Commission.
The company said that Adams has had no involvement with Scio or the new board of directors since he was ousted in June 2014. Company records also indicate that Adams and Monahan have liquidated a majority of their personal interests in Scio.
“Given the downward pressure the sale of Adams’ and Monahan’s stock holdings have had on the market for the company’s stock, the company will be seeking all available remedies to preclude future sales of (their) shares,” Scio noted, adding that it is “hopeful” these proceedings will result in restitutions to the company.
Scio was created by Adams and his former law partner, whom the indictment references as “M.M”--Michael Monahan.
According to the U.S. Attorney’s Office, Adams’ theft continued after he started Scio.
All told, he is alleged to have stolen more than $4 million over the years.
Adams, along with his father-in-law and Scio board member Theodorus Strous, were forced out of Scio in June 2014 via a campaign organized by disgruntled investors called “Save Scio.”
In a statement released following the indictment, Scio said its current board of directors and management team have been cooperating with the Department of Justice in its investigation as well as a separate one with the Securities and Exchange Commission.
The company said that Adams has had no involvement with Scio or the new board of directors since he was ousted in June 2014. Company records also indicate that Adams and Monahan have liquidated a majority of their personal interests in Scio.
“Given the downward pressure the sale of Adams’ and Monahan’s stock holdings have had on the market for the company’s stock, the company will be seeking all available remedies to preclude future sales of (their) shares,” Scio noted, adding that it is “hopeful” these proceedings will result in restitutions to the company.
More on Crime
The Latest
FinancialsApr 25, 2025
Kering’s Jewelry Brands Persevere as Q1 Sales Sink 14%Boucheron and Pomellato performed well in an otherwise bleak quarter for Kering amid struggles at Gucci.
EditorsApr 25, 2025
Piece of the Week: Deborah Meyers Experience’s ‘The Birds’ EarringsDesigner Deborah Meyers created her birds from oxidized sterling silver, rose-cut diamond eyes, and Akoya Keshi pearl feathers.
Brought to you by
Emerging Jewelers Accelerator Program Announces Second Cohort of Aspiring Jewelry Entrepreneurs Six new retail businesses were selected for the 2025 program, which began in January.
SourcingApr 25, 2025
De Beers Sales, Production Fall in Q1 Amid UncertaintyThe company said it expects sightholders to remain “cautious” with their purchasing due to all the unknowns around the U.S. tariffs.
Weekly QuizApr 24, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
Supplier BulletinApr 24, 2025
Protect Your Customers and Your BusinessSponsored by the Gemological Institute of America
EditorsApr 24, 2025
Q&A: Wolf’s CEO Talks U.S. ExpansionSimon Wolf shares why the time was right to open a new office here, what he looks for in a retail partner, and why he loves U.S. consumers.
Brought to you by
Protect Your Customers and Your BusinessThe risk of laboratory-grown diamonds being falsely presented as natural diamonds presents a very significant danger to consumer trust.
IndependentsApr 24, 2025
Longtime Iowa Jeweler Herman Ginsberg Dies at 99 A third-generation jeweler, Ginsberg worked at his family’s store, Ginsberg Jewelers, from 1948 until his retirement in 2019.
FinancialsApr 24, 2025
Charles & Colvard Delisted From Nasdaq Due to NoncomplianceThe company failed to file its quarterly reports in a timely manner.
SourcingApr 24, 2025
Young Diamantaires Transition to NonprofitThe organization also announced its board of directors.
TrendsApr 24, 2025
Amanda’s Style File: So CharmingCharms may be tiny but with their small size comes endless layering possibilities, from bracelets to necklaces and earrings.
MajorsApr 23, 2025
Bulgari Doubles Size of Jewelry Factory in ItalyLocated in Valenza, the now 355,000-square-foot facility includes a new jewelry school that’s open to the public, Scuola Bulgari.
Events & AwardsApr 23, 2025
PDPaola Creative Director Wins FGI’s ‘Rising Star’ AwardPaola Sasplugas, co-founder of the Barcelona-based jewelry brand, received the Fine Jewelry Award.
AuctionsApr 23, 2025
Rare Custom Rolex Daytona Heads to AuctionA platinum Zenith-powered Daytona commissioned in the late ‘90s will headline Sotheby’s Important Watches sale in Geneva next month.
MajorsApr 23, 2025
David Yurman’s New Campaign Stars Carmelo Anthony, Jaylen BrownThe basketball stars wear men’s jewelry from the “Curb Chain” collection.
MajorsApr 22, 2025
Zales’ Rebrand Takes Playful Approach to Fine JewelryThe Signet Jewelers-owned retailer wants to encourage younger shoppers to wear fine jewelry every day, not just on special occasions.
AuctionsApr 22, 2025
Christie’s to Auction JAR Jewelry CollectionThe 21 pieces, all from a private collector, will be offered at its Magnificent Jewels auction next month.
ColumnistsApr 22, 2025
The PR Adviser: Building Buzz Through Word of MouthLilian Raji answers a question from a reader who is looking to grow her jewelry business but has a limited marketing budget.
GradingApr 22, 2025
Avi Levy Is GCAL By Sarine’s New Chief Growth OfficerGCAL by Sarine created the new role to sharpen the company’s focus on strategic partnerships and scalable expansion.
IndependentsApr 22, 2025
Brinker’s Jewelers Acquires Fellow IndependentThe Indiana jeweler has acquired Scottsdale Fine Jewelers in Scottsdale, Arizona.
Events & AwardsApr 21, 2025
An Exhibition Exploring the History of Cartier Is Now on Display“Cartier: Design, Craft, and Legacy” opened earlier this month at the Victoria and Albert Museum in London.
IndependentsApr 21, 2025
New York Jeweler to Close After 111 YearsVan Cott Jewelers in Vestal, New York, is hosting a going-out-of-business sale.
IndependentsApr 21, 2025
IJO Names New Director of Vendor Relations, Merchandise StrategyIndustry veteran Samantha Larson has held leadership roles at Borsheims, McTeigue & McClelland, Stuller, and Long’s Jewelers.
Events & AwardsApr 21, 2025
Jewelers of Louisiana, Mississippi Jewelers Association to Co-Host ConventionThe two organizations will hold the educational event together this fall in Mississippi.
Events & AwardsApr 18, 2025
Daymond John to Give Keynote at JCK Las VegasThe entrepreneur and “Shark Tank” star will share his top tips for success.
CollectionsApr 18, 2025
Piece of the Week: Dukachi’s ‘Easter Bread’ PendantThe Ukrainian brand’s new pendant is modeled after a traditional paska, a pastry often baked for Easter in Eastern European cultures.
