FinancialsJan 17, 2025
Richemont’s Jewelry Sales Rise 14% in Holiday QuarterThe company, which owns Cartier and Van Cleef & Arpels, had a record Q3, with sales topping $6 billion.
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
Editors' Picks
Sponsored by
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
CollectionsJan 17, 2025
Piece of the Week: Picchiotti’s Transformable ‘Classic Blue and Green’ NecklaceThe necklace features a sapphire drop weighing more than 9 carats that detaches to transform into a ring.
MajorsJan 17, 2025
Tiffany & Co., CFDA Name First Winner of Jewelry Designer AwardJameel Mohammed, founder of Afrofuturist brand Khiry, will receive a cash prize and a one-year paid fellowship with Tiffany & Co.
Brought to you by
3 New Year’s Resolutions for Jewelry Lovers The new year feels like a clean slate, inspiring reflection, hope, and the motivation to become better versions of ourselves.
IndependentsJan 16, 2025
Lux Bond & Green to Open Sixth LocationThe 127-year-old jeweler is planning to open a new store in Mystic, Connecticut.
Weekly QuizJan 16, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
WatchesJan 16, 2025
Timex Launches Collection of National Park WatchesThe watches’ dials feature artwork celebrating the vibrant energy and unique landscapes of six of America’s national parks.
AuctionsJan 16, 2025
Elizabeth Taylor’s Diamond Line Bracelet Going up for Auction Offered by U.K. auction house Woolley & Wallis, the yellow diamond bracelet was a gift from Taylor’s good friend Michael Jackson.
Brought to you by
A Diamond Is Forever Celebrates "Forever Present" Holiday CampaignA Diamond is Forever hosted a holiday celebration in honor of their new marketing campaign, ‘Forever Present.’
Events & AwardsJan 16, 2025
JCK Las Vegas 2025 Open for RegistrationThe jewelry trade show returns to The Venetian Expo and The Venetian Resort in Las Vegas from June 6 to 9.
EditorsJan 15, 2025
The Jewelry I’d Bid On in Christie’s Iris Apfel AuctionAssociate Editor Natalie Francisco highlights her favorite fashion jewelry pieces from the upcoming “Unapologetically Iris” auction.
MajorsJan 15, 2025
Macy’s to Close 66 Stores as Part of Turnaround StrategyThe closures are part of the retailer’s plan to close 150 locations over a three-year period.
Policies & IssuesJan 15, 2025
JVC Debuts Guide to Americans with Disabilities Act ComplianceThe online guide is available for free and written with the jewelry industry in mind.
Events & AwardsJan 15, 2025
Jose Hess Design Awards Open for SubmissionsThe awards honor the late Jose Hess, a founding member of AJDC and an award-winning jewelry designer.
GradingJan 14, 2025
GIA CEO, President Susan Jacques to Retire at the End of 2025The grading lab said the search for her successor is underway.
ColumnistsJan 14, 2025
Jules Kim: Building Bridges Between Creators and IndustryIn this special op-ed, designer Jules Kim calls on big brands to collaborate with independent creators instead of copying their designs.
Policies & IssuesJan 14, 2025
These Designers and Retailers Are Raising Money for LA Wildfire Relief From raffles to auctions to donations, the industry is working to aid charities in Los Angeles amid the raging wildfires.
GradingJan 14, 2025
Former SSEF Director Henry A. Hänni DiesA pioneering figure in gemology, he is remembered for his spirit of generosity, curiosity, and joy.
FinancialsJan 14, 2025
Signet Jewelers Lowers Q4 Guidance After Holiday Sales Fall ShortThe peak selling days leading up to Christmas did not meet the jewelry retailer’s expectations.
MajorsJan 14, 2025
Edouard Schneider Joins Messika as Chief Brand OfficerSchneider brings over 20 years of luxury and fashion industry experience to his role as a key member of the brand’s global leadership team.
SourcingJan 13, 2025
Zambia Reinstates 15% Export Duty on Precious Gemstones, Shocking GemfieldsGemfields said the Zambian government revoked the 2019 suspension of the tax with no warning.
TechnologyJan 13, 2025
Ultrahuman Unveils Luxury Smart RingWith versions in 18-karat gold and platinum, the wearables company is blending health technology and fine jewelry.
Policies & IssuesJan 13, 2025
Brandee Dallow Elected President of Ethical MetalsmithsThe executive brings more than two decades of industry experience to the role.
IndependentsJan 13, 2025
The Seven Pops Up in Palm BeachThe New York City-based retailer is bringing its curation of jewels to a pop-up shop at Love Binetti in Palm Beach, Florida.
Policies & IssuesJan 10, 2025
Jewelers Relief Fund Reopened to Aid Victims of LA Fires Created by JA and DCA, the fund is collecting money for jewelry businesses damaged by the wildfires in Los Angeles County.
TrendsJan 10, 2025
Piece of the Week: Elsa Jin’s ‘Mozi’ BroochAdrien Brody received his first Golden Globe while wearing the “Mozi” brooch, which depicts a spill of traditional Chinese calligraphy ink.
SourcingJan 10, 2025
De Beers, GJEPC Partner to Promote Natural DiamondsThe pair will work together to support independent retailers in India with marketing assets, training materials, and other tools.
CollectionsJan 09, 2025
Karma El Khalil’s New Collection is an Ode to the MoonThe “Moonlight Rhapsody” collection is overflowing with gemstones, from raw opal to morganite and spessartite.
