Federal prosecutors have charged Edward Carlos St. Mary III, a US-based diamond dealer, with wire fraud for allegedly orchestrating a scheme to fraudulently obtain uncut diamonds worth approximately $3.275 million from an international natural diamond exporter and manufacturer.
The charges were unsealed by the U.S. Attorney’s Office for the Southern District of New York on May 24, following St. Mary’s arrest and initial court appearance in the Southern District of Texas.
Alleged Misrepresentations and Unauthorized Possession
According to the criminal complaint, the scheme began in April 2021 when St. Mary entered into negotiations with the owner of the diamond company in India. The parties ultimately agreed on a sale involving approximately 287 carats of uncut diamonds. Over the course of the transaction, St. Mary allegedly submitted falsified bank records and misrepresented his financial capacity, claiming he had arranged for payment through a U.S. financial institution.
The complaint alleges that on June 11, 2021, the diamond company delivered the goods to a secure transportation and logistics firm for shipment to the United States. The diamonds were intended to be released to St. Mary upon confirmation of payment. However, by August 4, 2021, St. Mary is said to have collected the diamonds from the security firm’s New York location without having made any payment or notifying the seller.
Prosecutors claim St. Mary then made repeated false representations, including suggesting the diamonds remained in the custody of the logistics company. By November 2021, he purportedly sent the diamond company a forged wire transfer document falsely indicating a completed payment of over $3 million. No such transfer was received.
Federal Statements and Legal Proceedings
U.S. Attorney Jay Clayton stated in the announcement: “As alleged, Edward Carlos St. Mary orchestrated an international scheme to steal over $3 million of uncut diamonds. He falsified bank records and repeatedly lied to line his own pockets. New York’s Diamond District is one of the world’s foremost destinations for the sale of precious gems, and this Office and its law enforcement partners are committed to ensuring both wholesale and retail buyers can engage in the market free from fraud.”
FBI Assistant Director in Charge Christopher G. Raia commented: “Edward Carlos St. Mary allegedly unlawfully procured hundreds of carats of diamonds worth millions of dollars with fabricated documents and promises of payment that were never upheld. The defendant allegedly disrupted the operations of an international company, and utilized our city to do so. The FBI remains committed to investigating anyone who orchestrates illicit surreptitious schemes to enrich themselves.”
As of the date of the announcement, the diamonds have not been returned and no payment has been made.
Implications for the Jewelry Trade
The case underscores risks in cross-border gemstone transactions, especially when financial representations are not independently verified. For jewelers involved in international trade, the case serves as a reminder to apply due diligence and confirm payment through reliable channels before releasing goods.
The incident also illustrates the risk of goods being released based on inaccurate or incomplete information during logistical handoffs. Companies working with secure transport and storage services may review their client verification protocols and release procedures as a result.
Legal Status
St. Mary has been charged with wire fraud, a federal offense carrying significant penalties. The investigation remains ongoing. The case is being prosecuted by the Southern District of New York’s Complex Frauds and Cybercrime Unit.
