Jewellery boss ‘made staff pose as customers in $350 million scam’

A jewellery boss who allegedly scammed investors out of £170m ($350m) reportedly had his staff pose as customers to make his shops look busy to keep up the ruse.

In what could be the UK’s biggest diamond scam, Vashi Dominguez is also alleged to have had shop workers sit at work benches and pretend to be goldsmithing when business was faltering.

Vashi had stores across the UK, including Birmingham, Manchester and a flagship one in Covent Garden, London.Credit:

Investors claim that when the facade was exposed, they still hoped they could be bailed out by the £157m worth of diamonds they were told were held in stock.

However, the remaining gemstones were valued at just £100,000, a BBC Panorama investigation claims.

So far Mr Dominguez – described as the “Pied Piper” of the industry – is not being investigated by police.

The diamond dealer’s business collapsed in 2023, with £170 million of debts.

He had stores across the UK, including Birmingham, Manchester and a flagship one in Covent Garden, London, which opened in 2021.

“After the shininess had worn off, we were getting, like, two, three, four people in it a day, and that was the reality in one of the busiest squares in London,” said Charlotte Paul, a former data analyst for Vashi.

As a result, he allegedly asked staff to pretend to be customers to try to trick investors, while others were told to work at benches and pose as goldsmiths.

An email said: “This request is direct from Vashi, as he is in major investor conversations and expects surprise store visits.”

Will Hayward, a former Vashi store manager, said: “[He] is very dynamic, he’s a very charismatic character. He was almost like the Pied Piper of jewellery retail.

“It was a whole elaborate show that Vashi would do with the clients, to show that they’ve got so many orders and this is how busy we are – ‘this is why you should really be investing into Vashi’.

“Total facade.”

Authorities not to investigate Mr Dominguez

In 2021, allegedly incorrect accounting figures were published on Companies House, recording sales of more than £100m when the real sales figures that year were reportedly only £5m.

Despite the struggles, he is still said to have paid for luxury cars including a Lamborghini and several flats in central London.

The company eventually went bust in April 2023.

Liquidator Benji Dymant claims creditors are owed £170m and that more than £100m of that is owed to investors.

However, Mr Dominguez is said now to have disappeared.

Bank statements show he flew to Dubai on the day the court ordered the company to be wound up, but he has not been located since.

Neither the Metropolitan Police or the Serious Fraud Office (SFO) have begun an investigation.

The SFO told the BBC it only “takes on a small number of high-level economic crime cases” each year.

The Met said it had “not received any referrals from the liquidator or the Insolvency Service” and would reassess if it did.

The Telegraph, UK

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