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RAPAPORT... Crime against the U.S. diamond and jewelry industry has been greatly reduced in the past decade as a result of increased vigilance and a cooperative working relationship between Jewelers Security Alliance (JSA), the FBI and the Gemological Institute of America (GIA); however, threats do remain to both the safety of industry personnel and to the integrity of the supply chain. Eric Ives, the unit chief for the FBI's international organized crime task forces, told Rapaport News that the free-flow of information between industry groups enables immediate tracking of crime patterns and suspicious activity. "JSA is the bridge between law enforcement and the jewelry industry," he said, and it fulfills training requests to local authorities, as well as the FBI to keep on top of and identify crime patterns and suspicious activity to prevent crime. Ives noted that the greatest threats this year are similar to last, with sophisticated smash-and-grab crews on the prowl to target high-end watches, engagement rings and high gold content jewelry at stores. In addition, criminals may kidnap a jewelry store employee to have them return after hours to disengage the alarm system in order to steal merchandise. Other emerging industry threats that the FBI, JSA and the GIA are monitoring include numerous imports of fake colored gemstones and counterfeit jewelry, although there are no real clear trends yet to establish a pattern or source of origin. A second issue Ives noted, global authorities are observing Kimberley Process (KP) certificate laundering, whereas rough diamonds are removed from their original location, destined for another country and it is there they are presented for the first KP certificate. But then these diamonds are transferred to yet another country for a second KP certificate so that the parcel's country of origin will be shown as mixed. Ives noted, too, that a corrupt KP licensed diamond dealer may obtain a certificate that reflects a substantially lower value for the goods, for example listing the diamonds' value at $10,000 when in fact the value may be $100,000, which then lowers the export tax due. In both cases, by the time the certificate goes through other corrupt cycles in the supply chain, the parcel of diamonds eventually reflects closer to market value but no clear indication of origin by time they reach Antwerp or New York, Ives stated. He reminded the trade to be diligent, vigilant and to survey the environment for abnormal activity and to call police if anything appears to be suspicious. "Many jewelry crimes have been thwarted because they have read the JSA's crime alerts and call police before a crime happens to them," he said.
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