Attorney General's News Release

January 31, 1996

Nixon recovers $92,500 from jewelry retailer who sold altered diamonds

Jefferson City, Mo. — A former St. Louis jeweler has paid $92,500 to compensate more than 200 customers who unknowingly bought altered diamonds from him. Jerry Chotin, owner of Kawin-Chotin Inc., made the payment under a consent judgment with Attorney General Jay Nixon that was signed today in St. Louis City Circuit Court.

Nixon said the money would be distributed on a pro-rata basis to Kawin-Chotin customers who were not aware at the time of purchase that the diamonds they bought were “clarity enhanced,” fracture-filled or otherwise altered to hide flaws. The money amounts to approximately 10 percent of the purchase price of the diamonds.

The $92,500 from Jerry Chotin is in addition to more than $750,000 in refunds that customers received after Nixon began his investigation in 1993. Nixon sued Jerry Chotin in February 1994 for violating a court-ordered agreement by not issuing full refunds to all eligible consumers.

“We have been vigilant in our aggressive pursuit to get full refunds for Kawin-Chotin customers for almost two and a half years,” Nixon said. “It sends a strong message we won't let up in protecting Missouri consumers.”

Jerry Chotin will be released from liability over the jewelry purchases by any consumers receiving the restitution. The agreement does not preclude, however, consumers from receiving additional money from the bankruptcy estate of Kawin-Chotin Inc.

Last month Nixon was successful in opposing an attempt by the bankruptcy trustee to force consumers to return more than $750,000 that had been refunded in order to pay other creditors.

Nixon advised consumers considering the purchase of diamonds or other precious gems to ask the jeweler if the gems have been clarity enhanced or altered in any way so they are fully informed about the jewelry they are purchasing.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818