Crime

12 Charged in $9M Diamond District Scam

CrimeApr 07, 2017

12 Charged in $9M Diamond District Scam

The men allegedly passed bad checks, used forged documents and told tall tales to cheat wholesalers out of millions of dollars in melee.

New York--Federal authorities in New York have charged 12 men with fraud for allegedly running a worldwide scam that cheated diamond dealers out of more than $9 million in goods.

The U.S. Attorney’s Office in Manhattan said Wednesday that the FBI had been investigating a series of “predatory frauds” being perpetrated by this group since 2015.

The group, some of who allegedly are Russian gangsters, are said to have used a variety of methods to cheat victims of diamonds--they would write bad checks, give false references, use forged documents and tell “tall tales,” preferring always to deal in melee because it’s harder to track.

According to federal authorities, the gang’s most common technique was the “bust out.”

They would build up credit and trust with a victim by paying for goods on delivery before placing a huge order, essentially maxing out their credit with the victim, and then disappear with the diamonds.

When victims would insist upon payment, the men would simply give them the run-around, telling them their diamonds had been lost, sold to someone else who refused to pay, or that another member of the group would repay them.

According to the U.S. Attorney’s Office, the men charged in the case are: Godel Sezanayev (aka Gary); Mark Mullakandov; Albert Foozailov; Imanil Muratov (aka Eddy); Manashe Sezanayev (aka Michael); Nathan Itzchaki; Arkadiy Israilov; Ali Javidnezhad; Mark Natanzon; Sholom Muratov; Menachem Abramov; and Nizamuden Akbari.

The attorney’s office said Wednesday that 10 of the 12 men had been arrested while Javidnezhad and Akbari remained at large. No further updates were immediately available Friday morning.

The 30-page complaint filed in the case contains an affidavit by the FBI agent who worked it, and sections of its read like they were taken straight out of a Hollywood blockbuster--secretly recorded meetings, undercover operations and cash-stuffed duffel bags.

In one instance, the affidavit describes how one victim, who lost a total of $2.4 million in goods to this gang, was outfitted with a recording device by the FBI for one meeting with Godel Sezanayev, or “Gary,” who told him, “Take me to court … I pay you when I feel like it,” “Nobody can do [expletive] to me,” and “If I need, I [expletive] somebody if I want.”

The affidavit describes another instance in which this same victim got swindled by Manashe Sezanayev, or “Mike.” Mike gave the victim a duffel bag that purportedly contained more than $500,000 but turned

out to mostly $1 bills, stacked up and concealed beneath $100 bills bound together with rubber bands.

Sezanayev, Foozailov, Muratov, Sezanayev, Javidnezhad, Israilov and Akbari are each charged with conspiracy to commit wire fraud, for which they could serve up to 20 years in prison.

Wire fraud is financial fraud that takes place using telecommunications or information technology; in this case, the perpetrators are charged with wire fraud because they used the telephone in some of their allegedly fraudulent dealings.

Foozailov, Nathan Itzchaki, Mark Mullakandov, Mark Natanzon, Menachem Abramov and Sholom Muratov are charged with conspiring to commit mail fraud, which carries the same maximum sentence.

These six are charged with mail fraud because they allegedly convinced four diamonds dealers in Mumbai to send them more than $7 million in diamonds via interstate carrier but never paid for them.
Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

2025 National Jeweler Retailer Hall of Fame inductees
Events & AwardsJun 06, 2025
Here Are the 2025 Retailer Hall of Fame Inductees

This year’s honorees include a Midwest retailer and two multi-store independents, one in New York and the other in New England.

Harwell Godfrey Granny Square Eleanor Necklace
CollectionsJun 06, 2025
Piece of the Week: Harwell Godfrey’s ‘Granny Squares Eleanor’ Necklace

As an homage to iconic crochet blankets, the necklace features the nostalgic motif through a kaleidoscope of cabochon-cut stones.

 Laura Gallon Joaillerie “Dynasty” ring, Bijules “Compass” bolo tie, Löf “The Orbitalis” ring
Events & AwardsJun 05, 2025
The 12 Fresh Faces in Couture’s Design Atelier

Discover the dozen up-and-coming brands exhibiting in the Design Atelier for the first time.

DCA-student-cert-NJ1872x1052-2.png
Brought to you by
The True Power Behind the Counter: Why Sales Associates Are the Heart of the Jewelry Business

When investing in your jewelry business, it's important not to overlook the most crucial element of success: the sales associates.

Jack Abraham The Royal Ruby Collection
SourcingJun 05, 2025
A Rare Suite of Rubies Has Arrived in Las Vegas

The “Royal Ruby” Collection is a quintet of untreated rubies curated by collector Jack Abraham.

Weekly QuizJun 05, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Daymond John
Events & AwardsJun 05, 2025
Daymond John to Give Keynote at JCK Las Vegas

The entrepreneur and “Shark Tank” star will share his top tips for success.

Vaishali Banerjee and Pallavi Sharma
MajorsJun 05, 2025
Platinum Guild International Updates Leadership Team

Two existing executives have been given new roles.

Article Image 1.png
Brought to you by
Clienteling Isn’t a Buzzword. It’s an Essential Business Model.

More shoppers are walking out without buying. Here’s how smart jewelers can bring them back—and the tool they need to do it right.

Meredith Tiderington
Events & AwardsJun 05, 2025
Zillion Announces 'Women in STEM' Scholarship Recipient

Meredith Tiderington, an electrical engineering student, was selected for the award.

The Gemological Institute of America’s logo
Lab-GrownJun 04, 2025
GIA Reverting to More General Terminology for Lab-Grown Diamonds

It will quit assigning the stones specific color and clarity grades in favor of applying “new descriptive terminology.”

Exterior of the Venetian and the Las Vegas Sphere
Events & AwardsJun 04, 2025
As JCK Talks Returns, Don’t Miss These 12 Sessions

From design trends to sustainability, here’s a roundup of can’t-miss education sessions at JCK Las Vegas.

Amy Curran
MajorsJun 04, 2025
Amy Curran Promoted at Hill & Co.

Her new role is director of strategic initiatives.

The eight rings in Viviana Langhoff’s AU79 jewelry collection
CollectionsJun 03, 2025
In Her Latest Collection, Viviana Langhoff Is Leaning Into Gold

The designer is embracing bold pieces with weight to them in “AU79,” a collection she celebrated with a creative launch party.

Gold and diamond bangles on a pair of jeans
FinancialsJun 03, 2025
Signet Jewelers Sees Turnaround in Q1 With Sales Ticking Up 2%

On an earnings call, CEO J.K. Symancyk discussed what’s working for the company and how it’s preparing for the potential impact of tariffs.

Woman’s hand holding shopping bags
SurveysJun 03, 2025
Consumer Confidence Improves in May

The index partially rebounded after months of decline, due in part to the U.S.-China deal to temporarily reduce import tariffs.

Dakota Johnson as Roberto Coin Brand Ambassador
CollectionsJun 03, 2025
Dakota Johnson Is Roberto Coin’s New Brand Ambassador

The actress stars in the latest campaign set in Venice, Italy, and is set to participate in other creative initiatives for the jeweler.

Mason Kay Jade necklace
GradingJun 03, 2025
Mason-Kay Jade Adds ‘Fei Cui’ to Jade Reports

The company has joined other labs, including GIA and Lotus Gemology, in adopting the Chinese term for "jadeite jade."

Gemfields ruby
SourcingJun 02, 2025
Gemfields’ June Auction to Include 36-Carat Ruby

The large stone will be offered at its June sale along with a selection of secondary-type rubies from a new area of the Montepuez mine.

Adobe Stock image of skyline of Bangkok, Thailand
GradingJun 02, 2025
GSI Opens New Lab in Thailand

Located in Bangkok, the laboratory is Gemological Science International’s 14th location worldwide.

Seaman Schepps pearl earrings
TrendsJun 02, 2025
Amanda’s Style File: Three Gems for June

Those born in June have a myriad of options for their birthstone jewelry.

David Allouche
SourcingJun 02, 2025
David Allouche Joins Grandview Klein Diamonds

The diamond industry veteran has been named its senior sales executive.

Movado Connect 2.0 watches
FinancialsMay 30, 2025
Movado’s Q1 Sales Slip Amid ‘Challenging’ Retail Environment

The company plans to raise the prices of select watches to offset the impact of tariffs.

Zoë Chicco Bracelets
Policies & IssuesMay 30, 2025
Tariffs & Designers: Navigating Pricing in an Unstable Environment

Between tariffs and the sky-high cost of gold, designers enter this year’s Las Vegas shows with a lot of questions and few answers.

Renato Cipullo Hematite Blaze Necklace
CollectionsMay 30, 2025
Piece of the Week: Renato Cipullo’s ‘Hematite Blaze’ Necklace

Designed by founder Renato and his daughter Serena Cipullo, it showcases a flame motif representing unity and the power of gathering.

Stock image of shipping containers
Policies & IssuesMay 30, 2025
Trade Court Declares Trump’s Tariffs Invalid

However, the tariffs remain in effect in the short term, as an appeals court has stayed the U.S. Court of International Trade’s decision.

Britney Spears
CollectionsMay 29, 2025
Britney Spears Files Trademark for New Jewelry Line

The pop icon is one step closer to launching her “B Tiny” jewelry collection, a collection she first began posting about last fall.

Inoveo Platinum Grain image.jpg
Supplier BulletinMay 29, 2025
Inoveo Platinum Grain, Exclusively Distributed by Stuller

Sponsored by Stuller

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy