According to a statement from the grading laboratory, HRD Antwerp, the Correctional Court of Antwerp imposed “severe sanctions” on the parties involved, including “effective incarceration, forfeiture of certain rights and substantial financial penalties and compensations”.
The judgement related to a 2012 incident wherein the traders allegedly bribed an HRD Antwerp employee to fraudulently inflate the colour grades on their diamond certificates. This reportedly allowed the traders to sell the falsely certified diamonds at a significantly higher price than their actual value.
While four diamond traders were sentenced, five parties were accused, and the public prosecutor submitted an appeal to impose even heavier penalties on another company implicated in the crime.
When prompted for further detail, an HRD Antwerp spokesperson told Jeweller that the grading laboratory was not lawfully able to disclose any further information about the parties involved.
HRD Antwerp confirmed, however, that all diamond companies that took part in the fraud, along with their representatives, had been declared “persona non grata” and were no longer welcome as customers of the grading laboratory. Further to this, the HRD Antwerp employees involved were fired.
HRD supports court ruling
HRD Antwerp CEO Peter Macken said the grading laboratory fully supported the court’s ruling on what he described as an “isolated case”.
“It’s extremely important such violations do not remain without consequences,” he commented. “The imposed sanctions are therefore a strong signal towards the industry that such practices are not tolerated.”
Ari Epstein, CEO of Antwerp World Diamond Centre (AWDC), expressed a similar sentiment, saying, “We are pleased that the court hands down very harsh penalties on these types of crimes. These judgments deliver an unmistakable message: those who break the rules will be punished severely.
“In our industry, everything depends on trust – when you give your word, you keep it. Those that violate that principle damage the reputation of the entire industry, and that is simply unacceptable.”
The news comes a month after the Gemological Institute of America (GIA) announced the invalidation of 1,042 diamond grading reports that had been fraudulently altered by a third party. At the time of publication, there had been no new developments in the GIA’s investigation.
Founded in 1976, HRD Antwerp is believed to be one of the largest diamond grading laboratories in the world. AWDC, a non-profit foundation that represents the Belgium diamond industry, is its primary shareholder.
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