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Wednesday, July 17, 2024 | Back issues
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Diamond Dealer Doubts That Story

CINCINNATI (CN) - An Antwerp-based diamond distributor told a federal judge that it doubts a client's claim that it lost $4.5 million in diamonds by leaving them in a bag under a table at a shopping mall food court. Rosy Blue finds that story "not credible."

Rosy Blue sued Eddie Lane and his businesses, including Eddie Lane's Diamond Showroom. Rosy Blue believes the diamonds were stolen, not "lost" at a mall in Florida, as the client to whom Eddie Lane introduced it insists.

Rosy Blue clams that Lane used his business relationship with the Belgium-based plaintiff "to introduce potential new clients, Chad Davis and Davis and Associates ... and would 'guarantee' purchases made by Davis and Davis & Associates."

Rosy Blue claims Lane "conspired and acted in concert with business associates, Chad Davis ... and Davis & Associates ... to defraud plaintiff, Rosy Blue, out of millions of dollars worth of diamonds".

Neither Davis nor Davis & Associates are named as defendants. Rosy Blue says it obtained a $6 million judgment against Davis and Davis & Associates in 2007, but both of those defendants filed for Chapter 7 bankruptcy and the judgments are unsatisfied.

The new complaint, against Lane, claims that Davis and Associates bought more than $6.5 million in diamonds from April to October 2006, in 19 transactions. Davis began making scheduled monthly payments, on which Lane and his Diamond Showroom got 1 percent commission, according to the complaint.

In November 2009, however, "Davis and Davis and Associates attempted to lead Rosy Blue to believe that approximately $4,000,000 worth of diamonds were stolen from Davis at the Florida Mall in Orlando, Florida," the complaint states.

Chad Davis claimed that he left the diamonds in a bag under a table at the mall's food court and didn't realize it until he got home.

Mall security found the bag - but no diamonds - in a restroom at the mall, according to the complaint.

Adding to the peculiarity of the alleged theft, "As verified in the sheriff's incident report, Davis waited for six days contact the local police to report that the diamonds were allegedly stolen from The Florida Mall," the complaint states.

Rosy Blue claims that "Davis and Davis & Associates never intended to pay for the diamonds, and their claim that a large quantity of diamonds was abandoned and lost is not credible."

"Moreover, Lane and Diamond Showroom never intended to honor their 'guarantee' contained in the March 6, 2006 letter to Rosy Blue ..."

Rosy Blue demands $4.5 million and punitive damages for conspiracy, breach of guarantee and fraudulent inducement. It is represented by Gary O'Donnell with Adorno & Yoss of Boca Raton.

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