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WARNING! Enchanted Diamonds Scam! Buyers Beware!

cflutist

Ideal_Rock
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From JCK:
On June 20, Enchanted Diamonds, a New York City–based online retailer that has had a showroom in Times Square, filed for Chapter 7 in New York federal court.

Bankruptcy papers for the e-tailer, whose business name is Online Diamonds International Corp., list assets as $203,000 and liabilities as $1.7 million. The site says it is no longer accepting orders, and its phone number is currently out of service.

Does this mean that class members might receive 12 cents to the dollar minus attorney's fees?
 

MollyMalone

Ideal_Rock
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Thank you, it is Shai Dion
But aren't you a sibling of DreamStone.com, which is not "on pause" on RC's website (you can click right through to DS)
https://www.rarecarat.com/our-retailers
  • According to the NYS Secretary of State's corporate database, Eli Shai David is the CEO of ShaiDion, Inc.
  • More than one online consumer review of DreamStone refers to working with Eli David and/or Dreamstone/Shaidion
  • Shai Dion itself has no customer reviews or other online presence, e.g., its Facebook page is virtually blank & clicking on the company website link posted on the About page -- https://www.facebook.com/pg/ShaiDion/about/?ref=page_internal -- takes you to a WordPress site, with expired SSL certificate, that has no content
  • DreamStone.com is intertwined with Guy David Group, Inc. - http://www.dreamstone.com/store/pc/legalnotices.asp
  • Guy David Group and Shai Dion made a joint trademark application some time ago: https://trademarks.justia.com/770/19/design-your-dream-77019246.html
  • The box that's featured on the first page of results for a Google search for Shai Dion gives the same address as DreamStone's & clicking on the Website button takes you to DreamStone.com
Shai Dion Google box.png

So your professed wish for transparency & your touted commitment to "communicat[ing] everything upfront" is ringing kinda hollow for me.
 

MollyMalone

Ideal_Rock
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RSZ

Rough_Rock
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Oh my, that poor couple who flew from Ireland to NYC for what was intended to be a joyously memorable, engagement weekend.

I hope no one else -- or at least, very few others -- has yet to discover what this vile man has done to them.
The group is reading over 100 people now and over $1.8m...I’m close to becoming physically ill.
 

Swirl68

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Feb 22, 2018
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But aren't you a sibling of DreamStone.com, which is not "on pause" on RC's website (you can click right through to DS)
If you click on the link to Dreamstone it will still take you directly to Dreamstone’s website, but as far as having their stones listed on RC’s search engine they do appear to be paused for now. Typing in their local zip (10036) brought up nothing as well. RC has several retailers listed with active links, but the only ones with stones showing up in the search engine that I can see are Adiamore, With Clarity, and Yadav.
 
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B200

Rough_Rock
Joined
May 5, 2019
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ATTENTION: for all affected please file complaints with ALL listed parties below. Look for “file a (consumer) complaint” in the below links.

1. Attorney general - www.ag.ny.gov

2. Better Business Bureau - www.bbb.org

3. Federal Trade Commission - www.ftc.gov

4. NYC Department of Consumer Affairs - https://www1.nyc.gov/site/dca/about/contact-us.page

This helps our case tremendously and every single complaint helps. Feel free to reach out to me with questions.
 

MollyMalone

Ideal_Rock
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If you click on the link to Dreamstone it will still take you directly to Dreamstone’s website, but as far as having their stones listed on RC’s search engine they do appear to be paused for now. Typing in their local zip (10036) brought up nothing as well. RC has several retailers listed with active links, but the only ones with stones showing up in the search engine that I can see are Adiamore, With Clarity, and Yadav.
Thanks ever so much, Swirl, for doing the legwork it didn't occur to me to do since I could click through to DreamStone's website... and I'd not previously auditioned RC's search engine because PS's excellent Diamonds Search engine is here at the top of every page, and it casts a wider net.

But that doesn't explain the twin-ness of Shian Dion & DreamStone, which obviously doesn't consider itself a small local jeweler as Leo described Shian Dion at post 262.
 

anthem202

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Jun 22, 2019
Messages
1
@maita13
There is a private convo linked above that I posted yesterday. If you haven’t already, please join us there for more specific info. This link is for anyone in a financial dispute with ED.

We are all sick about this.
How can I join the private group?
 

MollyMalone

Ideal_Rock
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ATTENTION: for all affected please file complaints with ALL listed parties below. Look for “file a (consumer) complaint” in the below links.
1. Attorney general - www.ag.ny.gov
2. Better Business Bureau - www.bbb.org
3. Federal Trade Commission - www.ftc.gov
4. NYC Department of Consumer Affairs - https://www1.nyc.gov/site/dca/about/contact-us.page
This helps our case tremendously and every single complaint helps. Feel free to reach out to me with questions.
Love that you're eager to be of assistance & I know that these are the entities the NYC Better Business Bureau representative gave when interviewed by Roseanne Colletti, who's been a consumer interest news-investigative reporter for NBC Channel 4 here in NYC for more than 20 years. But honestly, I think that's the BBB's stock response to inquiries of this nature & the BBB spokeswoman spoke without really reflecting on what she was saying.
That's the best, realistically, BBB can do at this point in this particular kind of situation; it doesn't have a wide-roving enforcement function.​
  • The City's Department of Consumer Affairs can only take enforcement action against businesses it licenses -- by suspending-revoking their license (after a hearing) and/or fines; it also will seek to arrange for mediation with the licensed business and a disgruntled customer. But as you'll see on this guide to the DCA Complaint Process, diamond-jewelry retailers are not specially licensed by the City -- unless they also are pawnbrokers: https://www1.nyc.gov/assets/dca/downloads/pdf/consumers/Consumers-ComplaintProcess-English.pdf So there's no practical value in submitting a complaint to DCA.
  • After you embark on filling out the FTC's online Form for Internet Shopping Complaints, the FCT makes a point of saying, "The FTC cannot resolve individual complaints, but can provide information about what steps to take to protect yourself." It adds that the complaints it received may be used in a legal investigation or forwarded to law enforcement agencies. ED victims have already been in touch with the Manhattan DA's Office, which earlier this week assigned an investigator in its Financial Frauds Bureau -- (212) 335-8900 -- to the ED matter, and (I think) the U.S. Attorney's Office. Other victims should contact those 2 offices if they've not already done so.
  • See my similar comments about the NYS Attorney General's Office at post #60 back on page 2.
Am tagging @MK Malone, @Rebecca Zuzula and @CaseyC because they either have taken the lead or know those who are coordinating efforts outside of PS.

Heartfelt best wishes!!
 

MollyMalone

Ideal_Rock
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Also, @B200 and @anthem202, think the Slack link posted on Sunday has been abandoned & this is the most current MO:
For those of you affected there is a helpful community of affected people who have been organizing all communication. You can reach out to them at enchantedupdates.gmail.com You will be asked to share proof of order/wire and status in order to be included.
But if I'm wrong about that, I'm sure that @MK Malone @Rebecca Zuzula and/or @CaseyC will be along later to set things straight.
 

RSZ

Rough_Rock
Joined
Jun 17, 2019
Messages
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@anthem202 @B200 and any other victims of the enchanted diamonds scam, we have a vetted group set up that you may participate in. You may contact this via the following email: [email protected]
Expect to be asked to provide proof that you were involved and a victim of ED. I did post this information elsewhere on this thread. @MollyMalone Thank you for all of your help to the victims. We are coming in and out of Pricescope to help us stay updated and to update as we’re able. We are still looking for many of the people who were hurt. Please keep sending ppl our way.
 

RSZ

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Also, @B200 and @anthem202, think the Slack link posted on Sunday has been abandoned & this is the most current MO:

But if I'm wrong about that, I'm sure that @MK Malone @Rebecca Zuzula and/or @CaseyC will be along later to set things straight.
This is still being used by folks were caught up in the ED scam. I’ve posted the email above for additional victims to contact to be included in the private victim group. They will be vetted and should expect that. [email protected] is where they need to go. It’s referenced at the StoneAlgo blog updates page, as well.
 
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MollyMalone

Ideal_Rock
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From this morning's Daily News, under the header Dodgy diamond dealer files for bankruptcy amid fraud allegations:
https://www.nydailynews.com/new-york/ny-metro-diamond-dealer-bankrupt-20190621-dxl4ofo37zhctpumn6eq75rg2y-story.html

According to the News reporter, the roughly $1.8 million in corporate liabilities that ED (actually the petitioner is Online Diamonds International Corp., d/b/a/ Enchanted Diamonds) listed in its bankruptcy petition is for monies owed to a mix of other "entities" and consumers who paid for diamonds-jewelry that have not been delivered. I guess it remains to be seen whether all of ED's consumer victims are listed.

(As a bit of courthouse trivia , the U.S. Bankruptcy Court judge assigned to the ED matter -- Hon. Stuart M. Bernstein -- is the judge presiding over the winding-down off Bernard Maddoff's investment firm.)
 

MollyMalone

Ideal_Rock
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@MollyMalone
Is the Hon. Stuart M Bernstein related to ED lawyer, Mark Bernstein?
Doubt it (except maybe very distantly -- like perhaps you and me ;)) )

In my experience, judges are conscientious about disqualifying themselves when required or appropriate. Federal court judges and magistrates cannot preside over a case where, e.g., they and a party or lawyer in the case are related within three degrees of consanguinity or affinity:
https://www.law.cornell.edu/uscode/text/28/455
 
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Nancyb

Rough_Rock
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Jun 19, 2019
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9
Doubt it (except maybe very distantly -- like perhaps you and me ;)) )

In my experience, judges are conscientious about disqualifying themselves when required or appropriate. Federal court judges and magistrates cannot preside over a case where, e.g., they and a party or lawyer in the case are related within three degrees of consanguinity:
https://www.law.cornell.edu/uscode/text/28/455
I hope so sorry...I’m pretty suspicious of everything right now.....
 

MollyMalone

Ideal_Rock
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The judges name is Stuart Mark Bernstein!?
Yes, here's his attorney registration page (full-time judges actually do not have to fulfill the CLE requirements & pay the costs of NY attorney registration; they are considered exempt from that professional obligation).
Hon. Stuart M. Bernstein OCA page.png

I hope so sorry...I’m pretty suspicious of everything right now.....
Bernstein is a very common surname in the NYC metro area. And this sure isn't a "one-horse town," where there's just one judge and a handful of lawyers handling everything.
 
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RSZ

Rough_Rock
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Jun 17, 2019
Messages
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From this morning's Daily News, under the header Dodgy diamond dealer files for bankruptcy amid fraud allegations:
https://www.nydailynews.com/new-york/ny-metro-diamond-dealer-bankrupt-20190621-dxl4ofo37zhctpumn6eq75rg2y-story.html

According to the News reporter, the roughly $1.8 million in corporate liabilities that ED (actually the petitioner is Online Diamonds International Corp., d/b/a/ Enchanted Diamonds) listed in its bankruptcy petition is for monies owed to a mix of other "entities" and consumers who paid for diamonds-jewelry that have not been delivered. I guess it remains to be seen whether all of ED's consumer victims are listed.

(As a bit of courthouse trivia , the U.S. Bankruptcy Court judge assigned to the ED matter -- Hon. Stuart M. Bernstein -- is the judge presiding over the winding-down off Bernard Maddoff's investment firm.)
Would I be correct in assuming then that certain lien holders will be paid before customers? Is there an order to payoff (if there are any assets)
 

MollyMalone

Ideal_Rock
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Would I be correct in assuming then that certain lien holders will be paid before customers? Is there an order to payoff (if there are any assets)
Yes, the bankruptcy statutes define the various kinds of creditors & the order (and how) each class is to be paid. This strikes me as a decent, and not very long, article about that. (Unfortunately, much of what's on the internet is geared to helping indebted individuals -- not folks who are owed money by a corporation that's filed a Chapter 7 petition). What I'd totally forgotten about, until reading this article, is that employees are a priority class of unsecured creditors. Consequently, any ED employee who is owed back wages needs to be added to the mix of creditors. Also, I'd be surprised, given what we've learned in the past week, if this corporation is au courant in its filing-payment of taxes, which also are given a priority.
https://www.legalmatch.com/law-library/article/how-are-creditors-paid-in-bankruptcy.html

I assume the legal team has obtained by now a copy of all the paperwork that ED filed Thursday evening in the Bankruptcy Court; it's all downloadable from the court's web site via PACER. So those lawyer(s) should (a) be able to give you an informed assessment of how many entities and persons, what classes, are accounted for in the petition... or (b) ask a bankruptcy specialist to provide you all with that kind of overview as to what to expect.
 
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RSZ

Rough_Rock
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Jun 17, 2019
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Yes, the bankruptcy statutes define the various kinds of creditors & the order (and how) each class is to be paid. This strikes me as a decent, and not very long, article about that. (Unfortunately, much of what's on the internet is geared to helping indebted individuals -- not folks who are owed money by a corporation that's filed a Chapter 7 petition). What I'd totally forgotten about, until reading this article, is that employees are a priority class of unsecured creditors. Consequently, any ED employee who is owed back wages needs to be added to the mix of creditors. Also, I'd be surprised, given what we've learned in the past week, if this corporation is au courant in its filing-payment of taxes, which also are given a priority.
https://www.legalmatch.com/law-library/article/how-are-creditors-paid-in-bankruptcy.html

I assume the legal team has obtained by now a copy of all the paperwork that ED filed Thursday evening in the Bankruptcy Court; it's all downloadable from the court's web site via PACER. So those lawyer(s) should (a) be able to give you an informed assessment of how many entities and persons, what classes, are accounted for in the petition... or (b) ask a bankruptcy specialist to provide you all with that kind of overview as to what to expect.
Thank you for clarifying.
 

Rockdiamond

Ideal_Rock
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With regards to BBB- which is also playing into this situation.
Its important to continue to stress that accreditation is achieved only one way- through payment. In my opinion this totally negates its value to consumers.
I think sites like Yelp are far more useful. Yelp does solicit businesses to advertise- but it has no effect on reviews- or the ratings.
Sites that charge companies to list diamonds can suffer the same pitfalls.
 

MollyMalone

Ideal_Rock
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With regards to BBB- which is also playing into this situation.
Its important to continue to stress that accreditation is achieved only one way- through payment. In my opinion this totally negates its value to consumers.
I think sites like Yelp are far more useful. Yelp does solicit businesses to advertise- but it has no effect on reviews- or the ratings.
Sites that charge companies to list diamonds can suffer the same pitfalls.
Think there's some misunderstanding. BBB grades businesses it hasn't accredited; in fact, a business cannot apply for accreditation unless it has a B rating or better.
 
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denverappraiser

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BBB ranks business with a familiar scale from school. The grades aren't completely crazy. It's mostly about complaints, or lack thereof, and the way they were resolved. The conflict comes with the 'A+' grade. That's only available to accredited businesses, and the only way to be accredited is to pay.
 

MK Malone

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As a consumer, if a business is willing to pay fees to the BBB to be called accredited AND has an A+ rating, I see them as trustworthy. They were able to get the accredited status and maintain a high rating. In my experience, the BBB has been unbiased during the complaint process and they make the complaints public. They act as middle man when the business owner ignores an unhappy customer. The business is forced to deal with the complaint or their rating is immediately affected. Both business owner and customer have to comply with a timeline. No more ignoring allowed. BTW, I warned ED that I was going to file a complaint if he continued to ignore me. He still ignored me.
 

Rockdiamond

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As a consumer, if a business is willing to pay fees to the BBB to be called accredited AND has an A+ rating, I see them as trustworthy. They were able to get the accredited status and maintain a high rating. In my experience, the BBB has been unbiased during the complaint process and they make the complaints public. They act as middle man when the business owner ignores an unhappy customer. The business is forced to deal with the complaint or their rating is immediately affected. Both business owner and customer have to comply with a timeline. No more ignoring allowed. BTW, I warned ED that I was going to file a complaint if he continued to ignore me. He still ignored me.
I totally get why you're saying that MK......but......
If you look at jewelry stores in NYC- and filter for accredited ones- many have no customer reviews at all. And some A+ accredited stores have only complaints. One that I looked at which had no positive reviews- only complaints. Ths store is surely a trustworthy seller ( very famous Fifth Avenue Store) but still....what it means is that sellers can pay for an A+ rating. And as the case of ED shows, they might very well not be trustworthy....
From my experience, people are far more likely to use Google, or Yelp to leave reviews that have actual value to shoppers.
As far as forcing a store to mitigate a bad situation....again, this case shows BBB has little or no power if the seller has bad intentions.
On the other hand- many (smart) businesses will monitor Yelp and Google reviews- if they see an issue many will reach out to the customer who felt they were wronged, and find a way to make it right.
My point is the BBB is simply not a reliable way to vet a seller......
 

RSZ

Rough_Rock
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Jun 17, 2019
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50
Wondering if there are any other victims that I don’t know of yet trying to reach out to anyone left...please email the group at [email protected]...
 
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