$15m Pink Diamond Fraudster is Jailed
October 29, 24
(IDEX Online) - A Canadian fraudster has been sentenced to 56 months in a US prison after he admitted masterminding a US$15m pink diamond scam.
James Gagliardini, 46, defrauded around 200 victims - many described as seniors or "unsophisticated" - through unsolicited phone calls, persuading them to invest in diamonds that didn't exist.
Paragon would then contact them again to persuade them to invest more money using false or misleading information.
Gagliardini founded Toronto-based Paragon International Wealth Management Inc in 2013 and operated it, with accomplices, until the offices were raided by police in 2018.
"Paragon representatives persuaded potential investors to make small investments in 'pink diamonds,' which Paragon claimed would increase in value," according to the U.S. Attorney's Office, Northern District of Ohio.
"If an individual agreed to invest, court documents state that Paragon would often mail the customer a real pink diamond and a legitimate appraisal certificate as a show of good faith."
Gagliardini appeared before a US court since most of his victims were citizens of the US rather than Canada.
One victim told the court: "I charged a large amount of money on my credit card to purchase the diamonds… I never received any diamonds just excuses. I had to sell my company, using the equity to pay off the debt…. I was going to use the money to help retire," according to a report by Canada's Northern News.
Gagliardini pleaded guilty to one count of conspiracy to commit wire fraud, in a plea agreement that significantly reduced his sentence.