NYC Jeweler is Suing the GIA Over “Upgraded” Stones

A New York jeweler, Max Pincione, filed in April a suit against the Gemological Institute of America (GIA) and Vivid Collection over alleged “payments” made to the GIA to have two stones “”upgraded”, reports JCK Magazine. He is seeking $50 million in damages.

In his suit Pincione charges that he bought a platinum diamond ring with a 37.01 carat diamond, and 103.78 carat pear shaped pendant from jewelry designer Vivid Collection in 2001.

The two diamonds were GIA certified: The 37.01 carat diamond as H / VS2 and the 103.78 carat pendent diamond as D Flawless.

According to the complaint, Pincione sold the diamond ring to the Royal Family of Saudi Arabia. But then, he alleges, “After the sale was made, and the stone was examined by independent experts of the Royal family of Saudi Arabia, the diamond ring was returned to the plaintiff without explanation, and with a demand for the return of the monies paid for the stones.”

The same happened with the pendant, which was sold to a Saudi businessman and than returned on the same grounds – that the stone was not of the “quality stated in the GIA grading reports”.

Pincione claimed that as a result he not only lost the Saudi Royal Family and Saudi businessman as clients, but also caused him to risk "incarceration and punishment in Saudi Arabia," JCK quotes the suit. For this and for damage to his reputation he is asking $50 million.

The suit’s ‘Exhibit F’, a hand written document with numbers and letters, was presented to back the claim of upgraded reports following “payments”.

Pincione alleges that the document, given to him by an informant, indicates that payments were made by Vivid to GIA to 'upgrade' the quality of the diamonds.

GIA has filed a motion to dismiss the lawsuit, and has flatly denied to allegations. The gem lab's lawyers noted the "important limitations" listed on the back of its reports, which says that the GIA "has made no representation or warranty regarding the Report … the results of any other examination performed on the diamond may differ… this report may not be referred to as a guarantee, valuation or an appraisal."