AuctionsSep 18, 2026
7.52-Carat Unheated Paraíba Tourmaline Sells for $1.3M at Sotheby’s The top lot of the auction house’s Hong Kong jewelry sale was an Art Deco Mauboussin necklace with ruby beads, which sold for $2 million.
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
Policies & IssuesSep 18, 2026
Tariffs, Retail Crime Top of Mind at JA’s Annual Fly-In Retailers and manufacturers headed to the Capitol this week to discuss tariff exemptions for diamonds and gemstones, among other issues.
CollectionsSep 18, 2026
Nanis Transforms Its ‘Boule’ Into a Mirror Our Piece of the Week is a pair of drop earrings from the “Sway” collection featuring Nanis’ first use of mirror-polished gold.
Brought to you by
Meet Gemology’s Next Generation Microscope: GIA® Gemolite® NXT Professional EditionExperience gemstones with greater precision and comfort than ever before.
GradingSep 18, 2026
De Beers Introduces Faster Version of Diamond Screening Machine SynthDetect 2 can scan a full tray in less than five minutes, De Beers said, making it six times faster than its predecessors.
Weekly QuizSep 17, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
AuctionsSep 18, 2026
Noonans To Auction Medieval Gold Seal Ring Recovered By 2 FriendsTwo metal detectorists discovered the ring, which may have belonged to English noblewoman Matilda of Lancaster, in Suffolk.
Policies & IssuesSep 17, 2026
Tariffs on India Could Increase as Russian Sanctions Bill Heads to Trump’s DeskThe bill has a provision that allows the president to raise tariffs on countries that import Russian oil and gas to as much as 100 percent.
Brought to you by
Your Piece Could Be the One Editors Talk AboutSubmit your pieces for a chance to win in this year's competition.
Events & AwardsSep 17, 2026
This Is the Winner of the 2026 Robert M. Shipley AwardThe American Gem Society presented the annual award to a former president of its board.
CollectionsSep 17, 2026
Cynthia Erivo, Zoë Chicco’s Jewelry Collab Is an Ode to TransformationThe “Chrysalis” capsule centers butterfly motifs representing growth, transformation, and the unfolding of who you are.
Events & AwardsSep 17, 2026
Louisiana Retailer Kevin Patton Wins Lifetime Achievement AwardJewelers of Louisiana presented Patton, the third-generation president of Pattons Fine Jewelry, with the award at its annual convention.
PodcastsSep 16, 2026
Episode 9: Remembering Cindy EdelsteinTwo special guests join the podcast to commemorate the 10th anniversary of the designer advocate, mentor, and author’s untimely passing.
CollectionsSep 16, 2026
Jessica McCormack, L’Objet Collab on Homewares CollectionMcCormack brings sea-inspired motifs from her “Beaches” collection to L’Objet’s tableware, vanity pieces, and first-ever cutlery set.
IndependentsSep 16, 2026
Bromberg & Co. Names New PresidentMarlin “Brian” Hood, who has been with the store for 20 years, will succeed Ricky Bromberg, who died earlier this month.
MajorsSep 16, 2026
Midas Chain Releases ‘House of Midas’ Bridal CatalogThe new bridal catalog features the latest jewelry collections and designs from timeless classics to modern silhouettes.
EditorsSep 15, 2026
2026 Emmys Jewelry: An Either/Or Proposition Stars wore either a necklace or earrings at 78th Primetime Emmy Awards but rarely both, Natalie Francisco notes.
ColumnistsSep 15, 2026
The Levels Your Website Must Clear Before AI Recommends YouJennifer Shaheen compares this new era of AI-powered SEO to a video game: your website must clear one level before advancing to the next.
IndependentsSep 15, 2026
Armadani Launches Retail Support Program for Holiday SeasonThe program highlights “Made in Italy” fine jewelry with digital merchandising, sales education, and local marketing support.
EditorsSep 15, 2026
Q&A: Signet Jewelers’ Joan Hilson on Diamond Demand, the HolidaysHilson, Signet’s chief operating and financial officer, discussed Q2, resurgent natural diamond demand, and why Blue Nile is a standout.
ColumnistsSep 14, 2026
Sherry Smith: Stop Waiting for December to Save Your ChristmasThe stores that have a great December are the ones that made good decisions in August, September, and October, Sherry Smith writes.
AuctionsSep 14, 2026
22 Carats of ‘Sunshine’ Are Up for AuctionThe 22.09-carat fancy yellow “Pragnell Kimberley Sunshine Diamond” is part of the fall jewelry sale at Heritage Auctions.
IndependentsSep 14, 2026
Greenwich St. Jewelers to Unveil Photography Exhibition“Adornos: Jewelry, Memory & What We Pass Down” honors the jewelry’s importance to New York City’s Latine communities.
SourcingSep 14, 2026
Gemfields Sells All Lots at First Emerald Auction in 9 MonthsThe company’s managing director of sales said the results demonstrate “continued strong demand for commercial-quality emeralds.”
SourcingSep 14, 2026
Diamonds Do Good Pledges Support for Eye Care ProgramThe nonprofit awarded a grant to the Gift of Sight initiative spearheaded by South African musician Black Coffee.
CollectionsSep 11, 2026
A Sapphire ‘Stardust’ Ring From Greenwich St. Jewelers The Latine-owned New York jeweler is marking two milestones this year: its 50th anniversary and the 25th anniversary of the 9/11 attacks.
MajorsSep 11, 2026
The Wishing Place by JTV OpensThe jewelry retail broadcast network has sponsored a new space for Make-A-Wish East Tennessee on its campus in Knoxville.
Events & AwardsSep 11, 2026
The Edge Awards Scholarships to 2 Young Jewelry ProfessionalsThe recipients were recognized at the 24 Karat Club of the Southeastern United States’ annual banquet.
