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London Diamond Bourse Releases Guide to Preventing Investment Scams

Jan 27, 2016 6:36 AM   By John Costello
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RAPAPORT... The London Diamond Bourse published consumer advice to prevent the public from becoming victims of “boiler-room” scams claiming to sell highly lucrative investment diamonds.

The advice, available on the public area of the London Diamond Bourse website, was developed by the gem exchange and the U.K.’s Insolvency Service, the bourse said in a statement January 26. Simon Rainer, a former chief executive officer of the British Jewellers Association, was a consultant for the project.

Victoria McKay, chief operating officer of the London Diamond Bourse, said investors have been “duped” into thinking they have made a sound financial decision but later find they have difficulty accessing the gems they have bought and that the stones have depreciated from the purchase price. They also encounter issues with value-added tax when bringing the stones back to the U.K., McKay added.

“We work closely with a number of partners to stop unscrupulous companies ripping off vulnerable investors and welcome this initiative by the London Diamond Bourse to prevent people from being mis-sold diamonds at grossly inflated prices for investment,” said Chris Mayhew, company investigations supervisor for the Insolvency Service.
Tags: boiler-room scams, consumer advice, financial, investment diamonds, John Costello, London Diamond Bourse, Rapaport News, scams
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