NY Dealer Admits $460,000 Lab Grown Fraud
March 07, 25.jpg)
(IDEX Online) - A dealer from New York City's Diamond District has pleaded guilty to defrauding two merchants out of $460,000 by switching their natural stones for lab grown replicas.
Manashe Sezanayev, 41, who owned Rachel's Diamonds, on 47th Street, Manhattan, admitted one count of grand larceny in the second degree when he appeared at a New York State Supreme Court.
He is likely to be sentenced to five years' probation - with no time in prison - according to Manhattan District Attorney Alvin L. Bragg Jr.
Sezanayev claimed to be interested in buying two diamonds, valued at approximately $185,000 and $75,000, according to court documents and records.
When the merchant visited, on 5 February 2024, Sezanayev turned his back to weigh the stones - and swapped them for lab growns that had been recut as replicas, together with forged GIA laser inscriptions.
On 27 March another merchant arrived with a $200,000 stone to sell. That same day Sezanayev bought a lab grown that was cut to resemble the natural stone. It was recut and inscribed with another forged GIA number. The merchant later learned of they'd been switched.
"Manashe Sezanayev is facing accountability for stealing diamonds from merchants and replacing them with fake stones," said District Attorney Bragg.
"We will continue to prosecute those who take advantage of consumers and conduct business deals in a dishonest manner."
Sezanayev has since paid $200,000 in restitution and returned one of the stolen diamonds to his victim.
In 2018 he was sentenced to a year in prison after he admitted, with others, defrauding diamond wholesalers out of $9m.