U.K. Bans Directors From Three Diamond Investment Schemes

Retail and Consumer Confidence
25/07/2015 08:42

The Insolvency Service (TIS) of the U.K. disqualified three directors of Cohen Stones Ltd., Imperial Assets Solutions Ltd. and Tudor Global Ltd. from a "director" role at any firm for more than a decade after investigators determined the men misled diamond investors and then filed voluntary insolvency. The TIS said that the three companies operated in a similar fashion: selling diamonds to customers with an extraordinary markup, claiming the stones would increase in value annually and recording a profit before filing for bankruptcy. Each of the firms were said to have stored the diamonds in a free trade zone, which would require their clients  to pay a 20 percent VAT on the purchase price to have the stones released. TIS estimated that customers, many of whom were elderly, lost more than $5.4 million (GBP 3.5 million).