Elderly neighbors in colored diamond scam???

[drk14]

I'm posting the company's website. If I shouldn't, I trust you will remove this post: http://sternbergcapitalgroup.com/

This domain name was registered with domain registrar GoDaddy on March 9, 2017. Unfortunately (but predictably), a private registration service was used to hide the identity of the domain owner. However, all domain registrars, including GoDaddy, maintain an "abuse contact" to receive abuse reports involving domain names sponsored by the registrar, including reports of illegal activity. The abuse contact for GoDaddy can be reached by telephone at (480) 624-2505, or by email at "[email protected]".

Hope this helps, and good luck.

 

[MollyMalone]

Additional FYI: I'm not finding Sternberg Capital Group in Quebec's database of registered business entities.

 

[Rockdiamond]

Great advice Molly. It would be fantastic f there is inded a legal remedy.
The internet really is like the "Wild West"
There have been hundreds of cases of sites stealing our property and it seems impossible to force them to do the right thing.
I hope there's a way to stop these bad actors.

 

[canuk-gal]

HI:

Great and substantive posts! Hope this helps the OP!

cheers--Sharon

 

[ChristineRose]

This is 100% a scam. If they send someone $72K, they will never see that money again.

It's time to involve law enforcement. I know David has offered to help them sell the diamonds, but I'd talk to the FBI first.

 

[MollyMalone]

@NancyK2255T -- One of the reasons I suggested Ms. Dodd as the first contact is because I don't see any reason at this juncture for your neighbors to pay for an attorney (or law firm paralegal) to do basic information-gathering that requires no legal expertise (and I'm a lawyer saying this). Nor do your neighbors sound like likely subjects of a (successful) financial guardianship petition proceeding if OK's standards for that are the same as/equivalent to the high standards in NY, where making some risk-taking or objectively ill-advised, financial decisions is not enough to qualify.

As a former longtime prosecutor, I'd like to also now suggest that your neighbors simply tell this new outfit that they are not prepared to make any decision just yet, want to think it over. I.e., don't denounce them as lowlife frauds, or even let on what's been discovered about this "investment" group. In other words, your neighbors shouldn't slam shut the door (at least just yet), no matter how tempting it is to put SCG "in their place."

At the same time, that simple message is the only communique your neighbors should give SCG unless or until directed otherwise by investigators. No phone conversations, no other, further response to emails. (Emails should not blocked, however).

 

[MollyMalone]

This is 100% a scam. If they send someone $72K, they will never see that money again.

It's time to involve law enforcement. I know David has offered to help them sell the diamonds, but I'd talk to the FBI first.

I'd speak with Ms. Dodd before making a cold call to the FBI.

 

[scarsmum]

I’m just here to ensure that if anyone ever searches for sternberg capital group they find this thread.

 

[ChristineRose]

I realize it is probably irrelevant, but how did they come to decide in colored diamonds? Did they decide to do this and reach out to this company?
Or did this company phone or email them?

Colored diamonds are much rarer than white-pale yellow diamonds, but they are also less in demand. Because of this the very good examples sell for a fantastic amount of money, but the less pretty ones are quite affordable. Visit Lebish for example, and you'll find that stones in the 1 ct range range from $2,500 to $535,000. Because of this it's easy to convince a non-expert that a fairly unremarkable stone is worth $535,000.

People tend to vastly overestimate the resale value of diamonds because they think they can buy retail and sell retail, or even buy wholesale and sell retail. In fact I think people overestimate diamonds generally. How many action movies have you seen where the villain is walking around with a velvet bag of diamonds in his pocket? Diamonds are traceable, easily stolen, and hard to sell even to honest dealers. There's a reason we stopped using diamonds as currency a few hundred years ago.

For what it's worth, there are similar scams involving emeralds, tanzanites, anything that is rare, low demand, and comes in a range of prices and quality. The company probably phoned them. There are mailing lists of people who have responded to scams in the past, and some of them just buy the names of the elderly and wealthy and cold call them.

 

[Rockdiamond]

To clarify: my offer is to assist in asssesing what the diamonds they have purchased are likely to sell for,- as well as suggesting idifferent venues for sale, as applicable.

 

[doberman]

Do these people have an adult child somewhere who is not so gullible? Call them. The fact that this couple is even considering sending the $72,000 is proof enough that they should not be in charge of their own finances.

This is a classic scam - send me $ and I'll send you more. But there's a sucker born every minute as the saying goes.

 

[denverappraiser]

SCG is the second company, the one that’s sounding like a Nigerian prince. That still leaves the first. They are the ones who gave Prince Sternberg the buyer’s confidential information. That’s either a gross violation of client privacy, or they’re in on it. I don’t care for either of those choices.

 

[AprilBaby]

Gosh I hope this turns out well!

 

[lalala]

I hope the OP comes back to give an update.. what an unfortunate situation. Lots of great advice given here and I hope that it's not ignored. Best of luck!

 

[NancyK2255T]

Hello Everyone. I just wanted to say thank you for your advice, insights and concern. You might notice that I deleted a couple of posts. I didn't feel comfortable revealing detailed conversations that my neighbors and the scammers had or anything else too personal for safety reasons.

Anyway, here's an update. Their daughter and son in law have been brought up to speed on what's happening. Despite even their advice, the couple decided to send the money to the scammers. They made up their mind and was determined to see it through. Even the people at their bank when they were making the withdrawal cautioned them.

There was nothing else to be done. Both are mentally sharp. But they are more trusting, and were desperate when someone offered hope in selling the diamonds they bought. They are also not technically savvy so a Google search isn't something that would cross their minds. Plus the scammers are professionals and know exactly what to say. Here's a good article about why older people get scammed more. It helped me to understand them a little better -

https://www.forbes.com/sites/caroly...cams-that-seem-so-obvious-to-us/#305cab47991d.

Anyway, they are holding their breaths and expecting the money from the sale of their diamonds to come in a week or so. When that doesn't happen, hopefully they'll be more open to seeking advice about financial matters instead of taking a leap.

BTW, I did some more digging this weekend and discovered this website:
http://waxmancapitalgroup.com/

It's the exact same language as the Sternberg site used. There were 3 other websites that used that language. Those websites were deleted, but there was enough cache data for me to see that they were the same company but simply changed their names: Harry Weinstein Company, Kornish & Associates, Coleman Capital Group and Waxman Capital Group are all versions of Sternberg Capital Group.

Anyway, thanks again for your help. I felt supported in my decision to talk with my neighbors. Your counsel to get their kids involved was also spot on. It would have been easy for you to read my post and move on, but instead you took the time to comment and it was much appreciated. I'll post one last time to give you a final update when they discover they've been scammed. We all know it's coming.

For those of you who offered to help my neighbors by reviewing their diamond information, hopefully they'll take one of you up on it.

 

[MissGotRocks]

They are fortunate to have a friend like you - I am just sorry they couldn't see through this. However, they seemed to have had counsel from you and their daughter and sometimes no matter how hard you try, you can't move mountains. Thanks for the update and best wishes to your neighbors. I am so sorry there are predators out there praying on the vulnerable.

 

[srke]

You tried your best, and I'm sorry there wasn't a better outcome. There's not much you can do if they are determined to go ahead

 

[Elizabeth35]

I am so sorry for your neighbors.
Thank you for watching out for them and bringing their daughter into the picture. That's the best you can do.
I pray that they will let their daughter oversee more of their finances in the future.

 

[Bron357]

A terrible tale - what awful people there are in this world. Thank you for caring and doing your best to help your neighbours. Unfortunately their pride and misplaced trust has been their undoing. So not only have the spent a huge sum on coloured diamonds, they spent more thousands sending to some “seller”. I feel sick to my stomach for these dear folk, i fear the probable outcome is not just terrible by having diamonds worth a fraction of their purchase cost, but no diamonds, no money and an additional $$$ windfall to the scammers. Everyone, please keep your eyes and ears open for family and friends who ever talk about “fabulous investments” as there are many more scams out there than legitimate investment options. If it sounds too good to be true, it’s a scam.

 

[Bron357]

A terrible tale - what awful people there are in this world. Thank you for caring and doing your best to help your neighbours. Unfortunately their pride and misplaced trust has been their undoing. So not only have the spent a huge sum on coloured diamonds, they spent more thousands sending to some “seller”. I feel sick to my stomach for these dear folk, i fear the probable outcome is not just terrible by having diamonds worth a fraction of their purchase cost, but no diamonds, no money and an additional $$$ windfall to the scammers. Everyone, please keep your eyes and ears open for family and friends who ever talk about “fabulous investments” as there are many more scams out there than legitimate investment options. If it sounds too good to be true, it’s a scam.

 

[diamondseeker2006]

Oh my. I simply cannot believe they sent more money after being warned.

There are a lot of gullible people....like the ones who continually share FB posts that are absolutely false, yet it never occurs to them to check them out before sharing.

But now I know why my credit union double checks before they send a wire transfer. I've felt insulted when they call after I've been to the bank, but now I guess there really are people who are not metally imapired who send hundreds of thousands of dollars to scammers.

 

[Sunstorm]

I am also out of words here.

At the end of the day, unfortunately people make their own decisions. Why they chose to ignore advice backed up by so much evidence, even by you, is beyond me. Even if there was no evidence, common sense dictates that you do not send a stranger money just like that. I really do not know what to say. I am just so sorry and you have done all you could do.

I am sure that they will never see any money. Perhaps they will see their diamonds that are most likely worth next to nothing. For sure not the 72 K and what they spent before.

I am wondering if they will hear anything from the company after this. I cannot believe that two mentally sharp people could be taken advantage like this. I would still give a call to the state agencies dealing with such criminal matters. Or at least give their family these resources.

This whole matter angers me beyond belief.

Not to mention that this is why so many people are scared of spending a considerable sum on diamonds. It was not this way before scammers started their diamond scams. This is also really hurting the trade in general and the honest, reputable dealers.

 

[BlingObsession]

Oh no, I'm so sorry to hear that they have thrown good money after bad. What a crying shame.

 

[OoohShiny]

Words fail me.

 

[diamondseeker2006]

Sorry I obviously didn't check my last post for typos!

The other big thing is, one should never, ever even listen to a cold call sales pitch over the phone! And whatever would cause someone to think that they'd send someone money who is supposedly offering to buy from them??? I use caller ID and I don't answer calls unless I know the caller! I need to sit down with all my young adult kids and make sure they know this.

All I can say is that I hope these people have a few million more in savings. Because if they have squandered all their retirement savings on this, it's going to be a very sad situation.

 

[partgypsy]

I'm so sorry! I am in disbelief that they sent even more money. I hope this does not wipe them out. : (

 

[whitewave]

I hope they can afford the loss

 

[doberman]

None of this surprises me, I expected to hear that your neighbors stubbornly doubled down on this losing gamble. The devious will always prey on the naive, and pride goeth before a fall.

 

[Rockdiamond]

So sad......as a merchant who believes that doing the right thing is essential to business, this is a frustrating story to hear.
Sad.....

 

[OoohShiny]

Can you report it to the police yourself? They might be able to trace the wire payment, although I'm sure it's withdrawn or laundered onward from the receiving account basically instantaneously...