Toronto police are warning the public about an alleged scam in which fraudsters offer jewelry buyers sizeable investment returns on trading gemstones but leave victims with cheaper stones.
According to police, in each case, the suspects present themselves as representatives from companies called “Royal Fine Jewels” or “Nygard & Associates” and claim to be in the business of jewelry or fine gem sales and marketing.
Those contacted by the fraudulent companies had originally bought gemstones as an investment from Global Royalties Limited, which is no longer in business.
Police say the representatives targeted victims who had previously bought gemstones from the defunct company.
The victims told police that the representatives offered them “generous returns” on their original gemstone investments if they began marketing with them.
During the marketing process, police say the representatives told the victims that they could earn even greater investment returns if they purchased additional gemstones or traded in their existing gemstones for more expensive – and highly sought after – ones.
Eventually, the representatives told the victims that they had found a prospective buyer and presented them with sales agreements which allegedly indicated “promising sizable returns” on their investments.
Police allege that the sales agreements signed by the victims were never fulfilled by the companies and that the victims were left with gemstones valued at a fraction of what they were purported to be worth.
The victims told police that they have been able to contact either business because all phone numbers and emails have since been disconnected.
Investigators believe they may be other victims and urge anyone who has done business with Royal Fine Jewels or Nygard & Associates to contact police or Crime Stoppers.
