Attorney General's News Release

July 19, 1996

Jeweler who paid refunds in excess of $400,000 over sale of altered diamonds to pay state $25,000 under court order

Jefferson City, Mo. — A St. Louis County jeweler who already has paid more than $400,000 in restitution after selling altered diamonds to unknowing customers will pay the state of Missouri $25,000 as part of a court order, Attorney General Jay Nixon announced today.

Nixon obtained the order today against Yale Chotin, owner of Chotin Diamonds Inc. in Clayton, who admitted that he sold the altered diamonds without disclosing that fact to customers. Some of the diamonds were fracture-filled, meaning that their clarity had been enhanced through injecting a foreign substance into them; others had flaws removed by means of a laser. Such alterations often lower the value of a diamond.

“If you sell altered gemstones, the customer must be fully informed of any alterations before the purchase is made,” Nixon said. “That disclosure was not made in this case, and an appropriate penalty will be paid.”

Chotin has previously provided refunds of more than $400,000 to those customers who unknowingly purchased altered diamonds. Under today's court order, he will be required to pay a $15,000 civil penalty to the state and also will pay $10,000 to the Missouri Merchandising Practices Revolving Fund to cover the cost of investigation, prosecution and attorneys' fees.

Chotin also has been ordered to not sell diamonds or other gems or jewelry to new customers in Missouri for a five-year period beginning today. After the five years is up, he must notify the Attorney General's Office of any sale of diamonds or other gems or jewelry to new customers. Chotin may continue to sell diamonds or other gems or jewelry to his existing customers who wish to buy them.

In 1993 Nixon's office began an investigation into the sale of altered gemstones by Kawin-Chotin Inc., another St. Louis jewelry store that was owned by Jerry Chotin, Yale Chotin's father. At Nixon's urging, Kawin-Chotin has refunded almost $850,000 to its customers who purchased altered gemstones.

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