GIA Probe May Involve Prominent Dealers

The Gemological Institute of America (GIA) has in recent weeks banned dealers from having their diamonds graded at GIA labs. The GIA would not provide the names of the dealers. However the list includes at least three more prominent dealers who sell to larger retailers or private clients, according to reports in The Wall Street Journal. "We felt there was enough evidence of unethical conduct to prompt us to send out another letter" notifying certain dealers that they could no longer submit stones to the GIA for grading," Kathryn Kimmel, a spokeswoman for the GIA told the WSJ. "We are trying to pursue all credible leads," Kimmel added.

The GIA has also not revealed how many dealers it suspects of having been involved in trying to pay off GIA diamond graders. On February 21, Diamond Trading Company (DTC) managing director Varda Shine reminded the firms 93 sightholders to immediately inform the DTC if they are implicated in the ongoing investigation at the GIA.

In a letter issued after the GIA notified additional diamond firms that they are no longer authorized to submit diamonds to the GIA for laboratory grading, the DTC reminded sightholders that they are contractually bound by the DTCs Best Practice Principles, which emphasize the requirement to follow the highest professional and ethical standards in the industry.