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WARNING! Enchanted Diamonds Scam! Buyers Beware!

MollyMalone

Ideal_Rock
Premium
Joined
Jun 2, 2013
Messages
2,990
I just pulled up the civil Complaint filed Thursday evening in the Manhattan state court on behalf of a ED customer who's been fleeced. According to the Complaint's allegations, ED told that customer -- by an email dated April 25 -- that "Enchanted Diamonds accepts only Bank Wires." So he wired the money.

I think we've seen reports in this thread of payments made via credit card after April 25 for the purchase of rings/loose diamonds never delivered. But by representing to this customer that a bank wire transfer was the only means by which he could purchase the desired diamond ring, ED obtained a quick infusion of more than $30,000 :angryfire:
 

JT123

Shiny_Rock
Joined
May 2, 2017
Messages
115
I just pulled up the civil Complaint filed Thursday evening in the Manhattan state court on behalf of a ED customer who's been fleeced. According to the Complaint's allegations, ED told that customer -- by an email dated April 25 -- that "Enchanted Diamonds accepts only Bank Wires." So he wired the money.

I think we've seen reports in this thread of payments made via credit card after April 25 for the purchase of rings/loose diamonds never delivered. But by representing to this customer that a bank wire transfer was the only means by which he could purchase the desired diamond ring, ED obtained a quick infusion of more than $30,000 :angryfire:
Bank wires shouldn’t be an option.Any company can go bankrupt.This buying option just needs to go away
 

srke

Shiny_Rock
Joined
May 10, 2017
Messages
110
I think we've seen reports in this thread of payments made via credit card after April 25 for the purchase of rings/loose diamonds never delivered. But by representing to this customer that a bank wire transfer was the only means by which he could purchase the desired diamond ring, ED obtained a quick infusion of more than $30,000 :angryfire:

I think that's what's I'm finding most despicable about all this. Companies do go bankrupt, and to a certain extent it cannot be helped (although reading through the other old thread does make you wonder about unsustainably low margins and what in retrospect seems to be deliberate attempts to undercut other vendors on search aggregators even on stones ED could not possibly obtain and thus had no right to be "selling"), but accepting money for stones you have no intention of buying, most likely to fund other expenses or previous purchases, and in a way that will make it almost impossible for the purchaser to recoup the money is just disgusting.

That their website remained operational (and presumably continued to take money from unsuspecting people) for days after it must have been clear to them that they could no longer sustain operations and would be filing for bankruptcy, that they seemed to have decided to just disappear suddenly with no public communication with anyone either directly or on any of their social media accounts (accounts that they were obviously still checking) to at least give an answer all the customers they had left hanging, that they were still accepted purchases even when it obviously became clear they would never be able to fulfill those orders, are things that would have been completely within their control and I cannot find any way to interpret those actions in anything but an unsavoury light.

You cannot help but feel that a lot of what ED did at the end, including that offer of a $1500 rebate, (and I cannot possibly imagine how they would have thought it would be feasible when the time came to pay those out, especially if they were likely already struggling at that stage), were all cynical strategies to obtain an infusion of as much funds as possible, even though they must have known it would result in a lot of people getting very badly screwed over ( and for what would be someone's very emotional and possibly first big purchase of their life with funds that may have been saved over many years and which they are not able easily afford).

The whole thing just feels like they made decisions to handle what is a bad situation in the worst possible way for all the customers they were dealing with.
 

RSZ

Rough_Rock
Joined
Jun 17, 2019
Messages
50
I think that's what's I'm finding most despicable about all this. Companies do go bankrupt, and to a certain extent it cannot be helped (although reading through the other old thread does make you wonder about unsustainably low margins and what in retrospect seems to be deliberate attempts to undercut other vendors on search aggregators even on stones ED could not possibly obtain and thus had no right to be "selling"), but accepting money for stones you have no intention of buying, most likely to fund other expenses or previous purchases, and in a way that will make it almost impossible for the purchaser to recoup the money is just disgusting.

That their website remained operational (and presumably continued to take money from unsuspecting people) for days after it must have been clear to them that they could no longer sustain operations and would be filing for bankruptcy, that they seemed to have decided to just disappear suddenly with no public communication with anyone either directly or on any of their social media accounts (accounts that they were obviously still checking) to at least give an answer all the customers they had left hanging, that they were still accepted purchases even when it obviously became clear they would never be able to fulfill those orders, are things that would have been completely within their control and I cannot find any way to interpret those actions in anything but an unsavoury light.

You cannot help but feel that a lot of what ED did at the end, including that offer of a $1500 rebate, (and I cannot possibly imagine how they would have thought it would be feasible when the time came to pay those out, especially if they were likely already struggling at that stage), were all cynical strategies to obtain an infusion of as much funds as possible, even though they must have known it would result in a lot of people getting very badly screwed over ( and for what would be someone's very emotional and possibly first big purchase of their life with funds that may have been saved over many years and which they are not able easily afford).

The whole thing just feels like they made decisions to handle what is a bad situation in the worst possible way for all the customers they were dealing with.
Completely agree and we’re thankful for your continued insight into this matter! There seems to have been intent.
 

RSZ

Rough_Rock
Joined
Jun 17, 2019
Messages
50
I think that's what's I'm finding most despicable about all this. Companies do go bankrupt, and to a certain extent it cannot be helped (although reading through the other old thread does make you wonder about unsustainably low margins and what in retrospect seems to be deliberate attempts to undercut other vendors on search aggregators even on stones ED could not possibly obtain and thus had no right to be "selling"), but accepting money for stones you have no intention of buying, most likely to fund other expenses or previous purchases, and in a way that will make it almost impossible for the purchaser to recoup the money is just disgusting.

That their website remained operational (and presumably continued to take money from unsuspecting people) for days after it must have been clear to them that they could no longer sustain operations and would be filing for bankruptcy, that they seemed to have decided to just disappear suddenly with no public communication with anyone either directly or on any of their social media accounts (accounts that they were obviously still checking) to at least give an answer all the customers they had left hanging, that they were still accepted purchases even when it obviously became clear they would never be able to fulfill those orders, are things that would have been completely within their control and I cannot find any way to interpret those actions in anything but an unsavoury light.

You cannot help but feel that a lot of what ED did at the end, including that offer of a $1500 rebate, (and I cannot possibly imagine how they would have thought it would be feasible when the time came to pay those out, especially if they were likely already struggling at that stage), were all cynical strategies to obtain an infusion of as much funds as possible, even though they must have known it would result in a lot of people getting very badly screwed over ( and for what would be someone's very emotional and possibly first big purchase of their life with funds that may have been saved over many years and which they are not able easily afford).

The whole thing just feels like they made decisions to handle what is a bad situation in the worst possible way for all the customers they were dealing with.
I know that I inquired about the rebate and chose this company because I thought that I’d be saving that extra 1500 down the road. (It was offered to me, as well.)
 

Nancyb

Rough_Rock
Joined
Jun 19, 2019
Messages
9
I know that I inquired about the rebate and chose this company because I thought that I’d be saving that extra 1500 down the road. (It was offered to me, as well.)
Same for me!...as well as I have an email from Joshua saying he will set my diamond for next to nothing! He was just desperate to take our money as quickly as possible. How is this not a crime?
 

the_mother_thing

Ideal_Rock
Premium
Joined
Mar 2, 2013
Messages
5,889
Yup. That’s me. Lol. I’m famous because of a thief. Good grief.
Might I suggest that you consider having admin change your user name on here to something less identifying? PS and PSers as a whole try to minimize identifying information for ourselves given the costs associated with our collections out of an abundance of caution and security. Just a suggestion. :wavey:
 

RSZ

Rough_Rock
Joined
Jun 17, 2019
Messages
50
Might I suggest that you consider having admin change your user name on here to something less identifying? PS and PSers as a whole try to minimize identifying information for ourselves given the costs associated with our collections out of an abundance of caution and security. Just a suggestion. :wavey:
How?? I tried doing that early on but, am not familiar with this platform well enough to alter things.
 

the_mother_thing

Ideal_Rock
Premium
Joined
Mar 2, 2013
Messages
5,889
Thanks! I did that!
Just now or a week or so ago? If it was awhile back, I would follow up with another message to inquire, not to nag/bug but specifically given the circumstances of this situation with ED, media attention, law suits, etc.
 

whitewave

Ideal_Rock
Premium
Joined
Feb 29, 2012
Messages
9,073
I just pulled up the civil Complaint filed Thursday evening in the Manhattan state court on behalf of a ED customer who's been fleeced. According to the Complaint's allegations, ED told that customer -- by an email dated April 25 -- that "Enchanted Diamonds accepts only Bank Wires." So he wired the money.

I think we've seen reports in this thread of payments made via credit card after April 25 for the purchase of rings/loose diamonds never delivered. But by representing to this customer that a bank wire transfer was the only means by which he could purchase the desired diamond ring, ED obtained a quick infusion of more than $30,000 :angryfire:
Sounds criminal to me
 

Tekate

Ideal_Rock
Premium
Joined
May 11, 2013
Messages
6,109
Having be ripped off by a pool contractor to the tune of 20K, I feel for you guys. At IBM we used to say; uh this a huge clusterf--k"

@Paul-Antwerp @Texas Leaguer @Rockdiamond I remember the thread from 16, I only think you could have been shot down by management @Paul-Antwerp because there seemed to be only one PSer who supported Enchanted Diamonds business model. PS is a place for beginners to learn about diamonds and CS. I have purchased from WF 2x, Good old Gold (August Vintage now I think) and B2C. All 3 were easy and I loved all my products. What I have learned here is that the people and vendors I have called out here treated me wonderfully. I have never considered ED because I would search and found the 2016 thread and that would have been it for me. I do not feel ANY vendor who spoke in this trade was trying to solicit money/sales, I think I would have caught on. After this debaucle I would think very very carefully about wiring money, at B2C I used to CC because it was my first purchase online. I thank you all very much for your honesty and professionalism.

To the people caught in the cluster---k, my heart goes out to you, I feel your pain because I was scammed and it cost me a lot of my inheritance from my Dad who was a conductor on the RR in NYC, he worked HARD for that money. YOU all worked hard for your money, the pain I read in these posts is palatable. I am so sorry, I am one with you.

Tekate :cry2::cry2::cry2:
 

diamondseeker2006

Super_Ideal_Rock
Premium
Joined
Jan 11, 2006
Messages
55,343
You probably remember me bringing up the topic a few times some years ago.

I alerted to retailers in possession of diamonds, on consignment from Antwerp cutting-houses, being confronted with clients finding the same diamond listed by ED, at prices lower than the cutting-house was wanting to sell them. Asking the cutting-houses, they had never even heard about ED.

When I brought it up on PS, I was disregarded and questioned and I was told to give proof or shut up. As time had passed by by then, searching proof again would have taken me too much time, so I chose to go silent on the matter.

Feeling sorry about that now. Feeling very sorry for the people who now risk to lose money. But wondering to what extent various advisory sites also carry a moral responsibility.

Live long,
Yikes, I definitely remember the discussion but not in detail. I hope I was not one who treated you badly. I can't ever think that I would have told someone I respect to shut up, especially not you or Wink. I may have given them the benefit of the doubt when they were brand new. My recollection is that I believed what was being said about them, and as I said, I stopped recommending them ages ago when I realized they truly were deceiving people by keeping sold stones listed.

I do respect PS and the fact that they are so careful in who they allow as advertisers. I have felt safe using and recommending the well vetted vendors here. But I feel that sites that exist to get commissions on stones sold are not nearly as unbiased as PS.
 

Rfisher

Brilliant_Rock
Premium
Joined
Oct 19, 2013
Messages
1,846
Obviously this is horrible for the end consumers that will most likely be getting the shaft.
I don’t think bankruptcy court forensically researches where all the recent receivables went that he ‘could’ have funneled or sheltered that a llc or parent company could shield him personally.
Is that where a criminal investigation comes in?
 

eyeramay

Rough_Rock
Joined
Apr 1, 2019
Messages
2
Hello everyone. I sent an email to [email protected] to include myself in the list of people affected. My fiance ordered my engagement ring from ED in April and we were lucky to get it on May 22nd, but the whole experience was very aggravating. My fiance and I are broke students, and he picked ED because he thought the lifetime warranty was amazing, and the $1500 rebate helped him on the budget he set for the ring. We are now so fearful that the diamond isn't the actual GIA one he thought he bought. Maybe it isn't even a genuine diamond. He paid with a bank wire too. I know that the situation is a lot worse for people who never got their rings or diamonds, and I should be grateful we even got the ring. But it still feels really depressing.
 

Nancyb

Rough_Rock
Joined
Jun 19, 2019
Messages
9
Hello everyone. I sent an email to [email protected] to include myself in the list of people affected. My fiance ordered my engagement ring from ED in April and we were lucky to get it on May 22nd, but the whole experience was very aggravating. My fiance and I are broke students, and he picked ED because he thought the lifetime warranty was amazing, and the $1500 rebate helped him on the budget he set for the ring. We are now so fearful that the diamond isn't the actual GIA one he thought he bought. Maybe it isn't even a genuine diamond. He paid with a bank wire too. I know that the situation is a lot worse for people who never got their rings or diamonds, and I should be grateful we even got the ring. But it still feels really depressing.
If it’s a GIA diamond there is most likely there is an inscribed Gia number on the diamond itself. If you take it in to a jeweler they can find the number inscription on it and you can look it up online on the GIA website and it should pop up on the screen...with the description of that diamond it should match the GIA paperwork that came with the diamond.
 

Nancyb

Rough_Rock
Joined
Jun 19, 2019
Messages
9
If it’s a GIA diamond there is most likely there is an inscribed Gia number on the diamond itself. If you take it in to a jeweler they can find the number inscription on it and you can look it up online on the GIA website and it should pop up on the screen...with the description of that diamond it should match the GIA paperwork that came with the diamond.
Hello everyone. I sent an email to [email protected] to include myself in the list of people affected. My fiance ordered my engagement ring from ED in April and we were lucky to get it on May 22nd, but the whole experience was very aggravating. My fiance and I are broke students, and he picked ED because he thought the lifetime warranty was amazing, and the $1500 rebate helped him on the budget he set for the ring. We are now so fearful that the diamond isn't the actual GIA one he thought he bought. Maybe it isn't even a genuine diamond. He paid with a bank wire too. I know that the situation is a lot worse for people who never got their rings or diamonds, and I should be grateful we even got the ring. But it still feels really depressing.

If you have a good microscope you can possibly find the GIA inscription yourself.
 

RSZ

Rough_Rock
Joined
Jun 17, 2019
Messages
50
Obviously this is horrible for the end consumers that will most likely be getting the shaft.
I don’t think bankruptcy court forensically researches where all the recent receivables went that he ‘could’ have funneled or sheltered that a llc or parent company could shield him personally.
Is that where a criminal investigation comes in?
My thinking the criminal component is wire fraud; we don’t really know though. Fraud would, I think, negate the bankruptcy filing. MollyMaLone may have a better idea...
 

RSZ

Rough_Rock
Joined
Jun 17, 2019
Messages
50
Hello everyone. I sent an email to [email protected] to include myself in the list of people affected. My fiance ordered my engagement ring from ED in April and we were lucky to get it on May 22nd, but the whole experience was very aggravating. My fiance and I are broke students, and he picked ED because he thought the lifetime warranty was amazing, and the $1500 rebate helped him on the budget he set for the ring. We are now so fearful that the diamond isn't the actual GIA one he thought he bought. Maybe it isn't even a genuine diamond. He paid with a bank wire too. I know that the situation is a lot worse for people who never got their rings or diamonds, and I should be grateful we even got the ring. But it still feels really depressing.
You’re not the only one affected by the 1500 incentive! I tried reaching out to others on yelp/social media as we figured most people adjusted budget to take into consideration that extra 1500. One thing you will want to do is ensure your diamond is not clarity enhanced. My understanding is that that is one reason Rarecarat stopped listing their site( it all happened around the same time)
 

diamondseeker2006

Super_Ideal_Rock
Premium
Joined
Jan 11, 2006
Messages
55,343
If you have a good microscope you can possibly find the GIA inscription yourself.
Not all GIA diamonds have an inscription. It's an extra charge and not automatically done with a report. So that doesn't necessarily mean anything if it doesn't have one.
 

Bron357

Ideal_Rock
Premium
Joined
Jan 22, 2014
Messages
3,861
What a mess. And complicated.
Wire fraud is difficult to prosecute in these circumstances. And expensive.
It is only a crime when a “scheme” is concocted to falsely acquire money on the basis of false representation or promises.
It isn’t a crime to request or only accept certain payment methods if such methods are legal. Bank wire is a totally legal, legitimate and frequently used method of transferring large sums of money. If a business has made its use a condition of service, that’s not crime, a potential client is always able to decline such a payment method and take their business elsewhere.
Enchanted diamond was a legitimate business providing clients with diamonds and rings after payment. And this process worked well until it didn’t. So it wasn’t a “scheme” that was constructed to steal people’s money.
However, the $1,500 rebate offer is more likely to be considered a fraudulent scheme but the argument there would be is that they didn’t “fail to deliver” that offer, no client reached the 120 day mark to be eligible.
Unlike other industries handling large sums of clients money who have a legal obligation to hold clients money separate and in trust accounts, a web based jeweller has no such obligation. Client money goes into the same bank account that business operating expenses come out from.
Given that Enchanted Diamonds business was only to act as an agent between the retail client and the diamond cutter / wholesaler, it’s hard to comprehend how they “unexpectedly” found themselves illiquid to the tune of $1.5 million dollars. Their expenses weren’t much more than office rent, utilities, staff wages and the few diamonds they held in house.
It’s possible, like last time when they dissolved their business due to their inability to meet their tax obligations, that this is again a contributor to their huge debt.
We don’t know and may never know the reason why the company went bust. Perhaps the two principles were paying themselves too much money, perhaps their business model was flawed from the outset, perhaps they were taking unreasonable business risks all the while not setting money aside to met taxation and other expense obligations.
And of course, it’s the business that goes bankrupt not the owners.
Yes there are director obligations but usually other intermediary companies and trusts are used and/ or assets held in the spouses name to protect personal / family money and assets. This prevents any claim being made against assets or monies outside the company structure.
A mess.
 

Nancyb

Rough_Rock
Joined
Jun 19, 2019
Messages
9
Not all GIA diamonds have an inscription. It's an extra charge and not automatically done with a report. So that doesn't necessarily mean anything if it doesn't have one.
So are you saying don’t look for an inscription? Why? I have 4 GIA diamonds all with inscriptions and I never paid an extra charge. They can take it to a jeweler to at least look. If not they can get it appraised or examined for comparison to the report. So yes it certainly does mean something. They expressed concern of it authenticity. I gave them good advice.
 

crystalinmke

Shiny_Rock
Premium
Joined
Aug 7, 2017
Messages
150
So are you saying don’t look for an inscription? Why? I have 4 GIA diamonds all with inscriptions and I never paid an extra charge. They can take it to a jeweler to at least look. If not they can get it appraised or examined for comparison to the report. So yes it certainly does mean something. They expressed concern of it authenticity. I gave them good advice.
I don't think shes saying to not look for an inscription. I think what diamondseeker2006 meant was that *if* the diamond doesn't have an inscription, it does not mean that there is something inherently wrong with the diamond, since that is what the original commenter was worried about.
 

Bron357

Ideal_Rock
Premium
Joined
Jan 22, 2014
Messages
3,861
I don't think shes saying to not look for an inscription. I think what diamondseeker2006 meant was that *if* the diamond doesn't have an inscription, it does not mean that there is something inherently wrong with the diamond, since that is what the original commenter was worried about.
Yes, the GIA charges extra if a client wants the report number inscribed onto the diamonds girdle.
So not all GIA assessed diamonds are inscribed.
It should be no charge for a jeweller to “look” for the report number on a diamond but if there isn’t one, it would require an accredited gemologist to look at the diamond under a microscope to confirm that the GIA report matches the characteristics of the diamond in question.
And there would be a charge for a gemologist to do that review.
 

MK Malone

Shiny_Rock
Joined
Mar 24, 2019
Messages
232
Yes, the GIA charges extra if a client wants the report number inscribed onto the diamonds girdle.
So not all GIA assessed diamonds are inscribed.
It should be no charge for a jeweller to “look” for the report number on a diamond but if there isn’t one, it would require an accredited gemologist to look at the diamond under a microscope to confirm that the GIA report matches the characteristics of the diamond in question.
And there would be a charge for a gemologist to do that review.
If the Diamond has an inscription, isn’t that clearly stated on the gia certificate? So a buyer knows prior to taking it to a jeweler if they are indeed verifying the inscription or not?

@eyeramay
Welcome to PriceScope. I am hopeful you received the diamond you ordered. Keep us posted please!! I totally understand your dismay in having any involvement with this unethical dealer (ED). It is absolutely disgusting and so disheartening. Continued prayers for everyone waiting for resolution, ongoing proposals and special celebrations.
 
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