GIA Grading Scandal: CEO Resigns, Four Fired

[dmc]

For people planning to spend thousands on a diamond, take note. This story has received no mention in the popular press and little to none on PriceScope. GIA''s Oct. 18 statement is here:

http://www.gia.edu/newsroom/608/24283/news_release_details.cfm

Some background: GIA, the leading gemologist in the industry, was sued by a vendor earlier this year who claimed GIA had taken bribes to bump up the grading on very large diamonds, i.e., 30 carats or more. GIA denied everything.

Three days ago, GIA said it had in fact identified "a small community of lab clients who are implicated in such actions" and that they would be "dealt with swiftly and decisively.” Their punishment? The unnamed lab clients can no longer send stones to GIA. No word on what compensation customers might receive if they''re holding a "bumped" diamond.

GIA also fired four supervisors, and CEO Thomas Yonelunas resigned.

You can find more at Idex, where outraged coumnist Chaim Even-Zohar calls it "Certifigate." There are links to related stories at bottom of page.

Chaim asks how many lab clients constitute a "community" (certainly more than two or three, or "a handful"). He also questions GIA''s description of the bribery as an "ethical violation" as opposed to one with financial consequences for buyers who have placed faith in GIA certs.

 

[JohnQuixote]

Conversation already going in this thread. Thank you.

 

[Regular Guy]

And it''s been posted since yesterday afternoon, I might add. But, thanks for pulling out some of the pertinent detail, which I hadn''t drilled to. The CEO resigning is certainly significant.

Really, I have had confidence in GIA doing a good job (for what it does), and this kind of news (or perhaps, because of it) doesn''t shake that confidence. Seems like diligent enough policing of that entity, where its good works have come to be relied upon, has helped to bring this corruption forward.

 

[aljdewey]

Just because I like to understand who all the players are, DMC, can you tell us a little about yourself and what made you register here to post this very thing and bring attention to it?

I ask because it''s just unusual for folks to come to Pricescope in this way. Most people here stumble onto it in looking for information about diamonds. It''s quite unusual for someone to come here and open with a first post that could potentially have an agenda.

 

[robbe]

hello, i would like to remind the audience where this scandal is coming from, see below and try to figure out how much money gia receives every year....
regards, robbe
________________________________________

GIA

Honor Roll of Donors: Financial Contributors http://www.gia.edu/support/3749/financial_contributions.cfm

 

[diagem]

Guys, this time it made a lot of noise!!!!

Its old news, its been done before, but the difference this time it slaped some big guns in our industrie...

Like I written before and i will rewrite,"Labs reports on diamonds or any other gemstones is based on opinions only...."

One thing i am hoping is that this GIA ....Gate!!! will let consumers understand that ALL Gemological Labratories are based on individuall knowledge and experiences, OPINIONS, ONLY!!!!


Please next time you compare GIA, AGS, EGL, IGI, etc, etc, remember this FACT!!!!

 

[dmc]

Date: 10/21/2005 2:16:43 PM
Author: aljdewey
Just because I like to understand who all the players are, DMC, can you tell us a little about yourself and what made you register here to post this very thing and bring attention to it?

I ask because it''s just unusual for folks to come to Pricescope in this way. Most people here stumble onto it in looking for information about diamonds. It''s quite unusual for someone to come here and open with a first post that could potentially have an agenda.

Not at all, aljdewey. I''m a Washington D.C. -area resident who''s been visiting PriceScope since I began shopping for an engagement ring in September. This site, and Good Old Gold''s, have been invaluable in cutting through the marketing BS for diamonds.

I stumbled across the "Certifigate" posting last week. That post garnered four responses and offered no background on what was a very new story. Only when I left PS and visited other Web sites did I realized the magnitude of the story. I suspected I wasn''t the only one who had missed the news. So I chose to re-post, with details.

As for "agenda," I''m not sure what you mean. I imagine you''re wondering if I work for EGL or another GIA competitor. I don''t. But if I did, so what? Everything in the original post is an established fact. Given the "gold standard" reputation GIA enjoys, it doesn''t simply deserve a pass. A lack of censure encourages rip-off artists, IMO.

 

[elmo]

Don''t worry dmc, you''re getting caught in a witchhunt

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