Toronto police are investigating what they call a "diamond fraud" valued at about $1 million.

They say a 61-year-old man had invested in a large number of loose, coloured diamonds, and made arrangements to sell them.

Investigators say he met up with the buyer at a local restaurant, and the buyer claimed to be a doctor.

They say the diamonds were exchanged for a cheque, which turned out to be fraudulent.

Police are asking anyone with information to come forward.