Independents

Lawyer at Center of Overgrading Cases Has License Suspended

IndependentsOct 02, 2018

Lawyer at Center of Overgrading Cases Has License Suspended

The Tennessee Board of Professional Responsibility has temporarily suspended Brian Manookian from practicing law in the state.

Brentwood, Tennessee—The attorney at the center of the lawsuits and public campaigning regarding overgraded diamonds that roiled the industry a few years ago has lost the right to practice law, at least for now.

According to a Sept. 21 notice from the Tennessee Supreme Court’s Board of Professional Responsibility (BPR), the court has opted to temporarily suspend Brian Phillip Manookian after finding that he “poses a threat of substantial harm to the public.” The BPR oversees lawyers’ conduct in the state.

The Nashville-based attorney is immediately banned from accepting new cases, and must cease representing existing clients by Oct. 21. After that date, “Mr. Manookian shall not use any indicia of lawyer, legal assistant or law clerk nor maintain a presence where the practice of law is conducted,” the BPR statement reads.

William C. Moody, the attorney with the BPR who is handling the case, said the main impetus for the suspension was an email that Manookian wrote to opposing counsel that the recipient and the board “took to be threatening.”

He added that there have been past court cases in Tennessee involving Manookian that indicate his actions should not be taken as idle threats, including allegations made by a fellow student back in 2004, his ex-wife and his ex-business partner at a Nashville gun store.

“We (the board) felt no lawyer should have to practice law and be threatened by his adversary,” Moody said.

He said Manookian—who did not respond to multiple calls and emails requesting comment—already has filed a petition to dissolve his suspension. The BPR is working to set a hearing date for the petition.

Manookian first became known in the jewelry industry back in 2014.

After buying a diamond at Nashville jeweler Genesis Diamonds that he allegedly later discovered was not properly graded, he led a legal charge against the retailer. Manookian sued Genesis on behalf of multiple consumers who were sold dimonds that were overgraded by EGL International—they had been given a color and/or clarity distinction that was more than a couple grades above what other labs, like GIA, would assign the same diamond.

At that time, diamond overgrading was the jewelry industry’s 800-pound gorilla du jour and the string of lawsuits forced the industry to deal with it.

In October 2014, Rapaport pulled all EGL reports from RapNet, while Polygon banned stones with EGL International reports only. The moves led to reorganization of EGL

labs outside the United States, with the company dropping the EGL International name, hiring Menahem Sevdermish as global manager and vowing to homogenize their grading practices.

In mid-December 2014, Manookian told National Jeweler that a “major national [law] firm” would be filing a class-action lawsuit within 60 days against EGL International as well as “major retailers” in the U.S. for selling diamonds allegedly overgraded by the lab.

He said at the time that the intention was for the lawsuit to target the big chains, not small, independent jewelers.

The class action against the majors never materialized, but Manookian, along with other attorneys, launched public campaigns in an effort to find plaintiffs to file a class actions against five independent jewelers.

The campaigns involved physical fliers and online ads calling the retailers in question “a scam” and asking consumers if they were sold a “fraudulent ring.”

Though many in the industry acknowledged the need to confront the issue of diamond overgrading and applauded the dismantling of EGL International, Manookian’s plaintiff-attracting tactics were met with disdain, with two attorneys interviewed by JCK describing them as “unusual.”

And one retailer, the now-closed Diamond Doctor in Dallas, fired back, suing Manookian, his Nashville law partner Brian Cummings and their firm, Cummings Manookian, in a Texas federal court for violations of the RICO Act, business disparagement and injury to business reputation.

The lawsuit alleged that the public campaigns—purportedly launched in the interest of finding consumers who had been sold overgraded diamonds and helping them to right that wrong—were nothing more than a “cunning shakedown operation” to extort money from the jewelers.

“Manookian and his firm Cummings Manookian selectively target and systematically attack prominent, successful retail jewelers around the country as ‘fraudsters’ perpetrating ‘scams’ accusing them—without any evidence—of selling poor-quality diamonds at inflated prices,” the original complaint, filed in February 2016, reads.

“Manookian utilizes slickly produced internet websites with videos featuring Manookian himself and social media campaigns plastered with the victim’s trademarks and logos. The targeted jeweler (in this case, The Diamond Doctor) naturally contacts Manookian directly or indirectly and demands a stop to the disparaging and harassing campaigns. Manookian … quickly gets to the point: the victim has the choice of retaining Manookian and his firm as outside counsel at a cost of millions of dollars or face further intimidation, unsubstantiated allegations and harassment.”

In August 2017, the parties reached a settlement. Though terms of the settlement were largely confidential, one of the Diamond Doctor’s attorneys, Randy Johnston of Dallas firm Johnston Tobey Baruch, described all the twists and turns that led up to the “crazy” finale of the case in a blog post published on JohnstonTobey.com.

Reached last week, Johnston declined to comment on Manookian’s suspension.

The notice from the Tennessee BPR said the temporary suspension of Manookian’s law license will remain in effect “until dissolution or modification by the [Tennessee] Supreme Court.”

The BPR defines an attorney who has been suspended as “not in good standing and cannot practice law in Tennessee, subject to reinstatement to active status.”

It is separate classification from disbarred, which “terminates the individual’s status as a lawyer, though the individual is permitted to apply for reinstatement after five years.”
Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

Jemma Wynne Forme Toggle Necklace
CollectionsJul 25, 2025
Piece of the Week: Jemma Wynne’s ‘Forme’ Necklace

Anne Hathaway was seen wearing the toggle necklace three times while filming scenes for “The Devil Wears Prada 2.”

September Hong Kong jewelry show
Events & AwardsJul 25, 2025
Pre-Registration Open for September Hong Kong Show

Jewellery & Gem World Hong Kong is scheduled for Sept. 15 to 21, and buyer pre-registration will be available until Sept. 7.

Bulgari Celestial Mosaic spinel necklace
FinancialsJul 25, 2025
LVMH Sales Slip in H1 Amid ‘Prevailing Uncertainties’

Renovations at Tiffany & Co. stores ate into profits in the company’s watch and jewelry division.

rio-article photo-diamond.jpg
Brought to you by
Taking the Moment Head On: How Rio Grande Champions the Present & Future of Fine Jewelry

As a leading global jewelry supplier, Rio Grande is rapidly expanding and developing new solutions to meet the needs of jewelers worldwide.

Mark and Candy Udell
Events & AwardsJul 24, 2025
2 Retailers to Receive 2026 Gem Award for Lifetime Achievement

Mark and Candy Udell of London Jewelers will receive the honor at the 24th annual Gem Awards next March.

Weekly QuizJul 25, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
De Beers marine mining vessel the SS Nujoma
SourcingJul 24, 2025
De Beers Sees Diamond Production Sink 36% in Q2

While struggles continue at the mining and trading end of the pipeline, consumer demand for diamond jewelry is holding steady.

Francesca Villa Fantasia Collection The Crab Pendant, The Mermaid Pendant, Keep Dancing Seahorse Pendant, Keep Dancing Ladybug Pendant, Secret Dreams Pendant, The Puffer Fish Takes Flight Pendant
CollectionsJul 24, 2025
Francesca Villa Adds Dimension to Her Intaglio Characters

The “Fantasia” jewelry collection turns the intaglio animals from her “Close Encounters” collection into 3D characters.

an instructor and a student in a bench jewelry classroom
Brought to you by
Investing in the Next Generation of Bench Jewelers

The Seymour & Evelyn Holtzman Bench Scholarship from Jewelers of America returns for a second year.

Breitling’s special Eagles Super Bowl watch on gold bracelet
WatchesJul 24, 2025
Breitling Drops Super Bowl Watch Honoring the Philadelphia Eagles

The special Classic Avi Chronograph 42 with an Eagles-green dial is limited to 59 pieces, a nod to the Super Bowl Philadelphia just won.

Stock image of crime scene tape
CrimeJul 23, 2025
JSA Warns of Violent String of Smash-and-Grabs in California

JSA has received reports of mobs swarming jewelry stores, driving cars into the storefront or smashing through the windows.

Silvia Furmanovich Kasmir Collection Carnelian Bracelet and Sketch
CollectionsJul 23, 2025
Silvia Furmanovich’s ‘Kashmir’ Collection Is a Tribute to Northern India

The “Kashmir” collection features centuries-old craft techniques made in collaboration with the region’s master papier-mâché artisans.

A Vanitas by Hannah Martin and Guy Berryman Sothebys
CollectionsJul 22, 2025
Jewelry With a Rock ‘n’ Roll Aesthetic Heads to Sotheby’s London

Next week, the auction house will kick off a selling exhibition of jewelry by British artist Hannah Martin and Coldplay’s Guy Berryman.

Cover of the book “Flawless: Inside the Largest Diamond Heist in History”
SourcingJul 22, 2025
Antwerp Diamond Heist Documentary Coming to Netflix

“Stolen: Heist of the Century” is based on “Flawless,” the book about the middle-of-the-night theft, and will debut on Netflix in August.

Emmanuel Raheb
ColumnistsJul 22, 2025
The Gifting Gap: How to Market Jewelry Beyond the Holidays

Emmanuel Raheb shares the top five gifting moments outside of major holidays that jewelers should build marketing campaigns around.

NY Now
Events & AwardsJul 22, 2025
NY Now’s Summer Market Returns in August

The wholesale trade show’s Luxury Lifestyle section will showcase established and emerging jewelry designers.

Jeweler setting a diamond into a ring
MajorsJul 21, 2025
Rio Grande Expands Personalization Offerings

As demand for custom jewelry grows, the company is expanding its services to support retailers.

National Associate of Jewelry Appraisers Logo
Events & AwardsJul 21, 2025
NAJA’s 2025 ‘Ace It’ Conference To Go Virtual

The mid-year conference for jewelry and watch appraisers is slated for Aug. 9 to 10 on Zoom.

Jacquie Aiche graduated turquoise beaded necklace
TrendsJul 21, 2025
Amanda’s Style File: Graduated With Honors

Graduated stones make for elevated tennis-style pieces and dramatic statement necklaces.

24th Gem Awards Show Logo
Events & AwardsJul 21, 2025
Gem Awards Now Accepting Nominations for 2026

Nominations in the categories of Jewelry Design, Media Excellence, and Retail Innovation will be accepted through July 30.

Lewis Heyman
MajorsJul 18, 2025
Lewis Heyman on Sourcing Gemstones, Post-Retirement Plans

He retired last month after 28 years traveling the world to source the very best gemstones for his family’s jewelry business, Oscar Heyman.

CCWW Designs Multiple Shell Charm Necklace
TrendsJul 18, 2025
Piece of the Week: CCWW Designs’ Shell Charm Necklace

The charm necklace features six nautical charms of shells and coral that founder Christina Puchi collected on Florida’s beaches.

The Plumb Club board members
MajorsJul 18, 2025
Plumb Club Elects New Board Members

The organization elected its youngest vice president as it looks to draw in fresh talent.

Jewelry industry veterans Brad Campbell and John Liebler
TechnologyJul 18, 2025
Brad Campbell, John Liebler Join Clientbook’s Executive Team

Campbell joins the company as vice president of business development while Liebler is the new vice president of operations.

Silver, Gold, and Bronze Medals for Italy Olympic Winter Games
CollectionsJul 17, 2025
2026 Winter Olympic Medal Design Symbolizes Unity

The medals feature a split-texture design highlighting the Games’ first time being hosted by two cities and the athletes’ journeys.

vimeo screenshot.png
Supplier BulletinJul 17, 2025
The INSTORE Jewelry Show 2025: Your Holiday Preparations, All Wrapped Up!

Sponsored by The INSTORE Jewelry Show 2025

Guinness
SurveysJul 17, 2025
The Most Recommended Brands in the World, According to YouGov

Globally, travel and transportation brands reigned, while in the U.S., alcoholic beverage companies and a lingerie brand took the top spots.

Gina Ferranti
IndependentsJul 17, 2025
Gina Ferranti of GiGi Ferranti Jewelry Dies at 59

The Brooklyn-based jewelry designer is remembered as a true artist and a rare talent.

×

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