Smuggled diamonds up for auction

JOHN SELKIRK/Dominion Post

BUSTED: The dazzling contents of a diamond-smuggling ring - busted by customs officers checking mail - are to go up for auction. Webb's jewellery consultant Christopher Devereaux eyes one worth $58,000.

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Diamonds  are usually a girl's best friend. But when they are worth $250,000 and have been illegally smuggled into the country, they become an art auctioneer's best friend.

The dazzling contents of a diamond-smuggling ring - busted by customs officers checking mail - will go under the hammer next Wednesday at Webb's in Auckland.

Officers were tipped off to the collection, which has a retail value of $250,000, after a package of loose diamonds was discovered during a routine X-ray check.

Included in the collection are a pair of two-carat round diamonds (about eight millimetres in diameter) and a 112 carat princess cut diamond.

Webb's jewellery consultant Christopher Devereaux said the owner had paid the ultimate price in trying to evade duty and gst on the jewels.

"It was just a really dumb thing to do. To [try and] save a very small amount of money, a very, very significant amount of money has been lost."

Customs investigations and response manager Paul Campbell said that after discovering the diamonds, officers delivered the jewels to the importer, who had 20 days to complete paper work.

When nothing was received a search warrant was executed and several packages of diamonds seized.

"As a result of our inquiries, we were aware he loaned diamonds out to jewellers on a consignment basis [payment received once diamonds sold] and that some of these also had not had the duty and gst paid on them."

Officers seized the collection and the importer was prosecuted at Auckland District Court in June last year.

Mr Devereaux said though the exact history of the jewels was unknown, they were not "blood diamonds" - the name given to black market trade in diamonds to fund civil war.

The jewels had arrived in standard "diamond papers", carefully folded to protect them.

Webb's regularly carried out auctions for Customs at a "trade rate", Mr Devereaux said.

Mr Campbell said proceeds from the diamond sale would go into the Government's "consolidated fund".

- © Fairfax NZ News