Yesterday, the U.S. Attorney for the Southern District of New York and the Assistant Director in Charge of the New York Field Office of the FBI announced the arrest and charges against businessman Edward Carlos St. Mary III. St. Mary faces allegations of wire fraud in a scheme to obtain over $3 million worth of diamonds from an international diamond exporter. According to a statement from the U.S. Attorney's Office, Southern District of New York, he is accused of falsifying bank records and making false statements to procure the gems.
In what appears to be a carefully orchestrated plan, between April and June 2021, St. Mary engaged in numerous communications with the owner of the Diamond Company, based in India. He agreed to purchase about 287 carats of diamonds for roughly $3.275 million. As part of the scheme, St. Mary sent fraudulent documents and misrepresented his financial standing to the Diamond Company, as alleged in the complaint detailed by the U.S. Attorney's Office. It's reported that he picked up the diamonds from a secure transport company in New York City, without making the necessary payment and without the Diamond Company's consent.
Over the months that followed, St. Mary allegedly continued to deceive the diamond exporter with various excuses for his non-payment. The ruse included sending a fraudulent bank statement that purported a wire transfer of over $3 million to the Diamond Company, a transaction that never actually occurred. “As alleged, Edward Carlos St. Mary orchestrated an international scheme to steal over $3 million of uncut diamonds,” U.S. Attorney Jay Clayton stated, highlighting the gravity of the deception involved, as per the U.S. Attorney's Office.
St. Mary's admission to the diamond company's owner on December 7, 2021, suggested a mix-up with the bank - "this entire time my banker has told me that the funds were in your account. He assured me that you had already been paid. I will have it done as quick as I possibly can," he claimed. Yet, there are no records to back his assertions regarding bank communications about payment for the diamonds. To date, St. Mary has neither returned nor paid for the diamonds, leading to a charge that carries a maximum sentence of 20 years in prison.
The FBI's commitment to investigating and halting such fraudulent practices was reiterated by Assistant Director in Charge Christopher G. Raia, especially as such cases disrupt international businesses and misuse major trade hubs like New York City. The prosecution, overseen by Assistant U.S. Attorneys Remy Grosbard and Ariana Bloom of the Office's General Crimes Division, is a testament to the diligence of law enforcement in protecting the integrity of the marketplace.
