Jewellery boss in £170m scam told shop staff to pretend to be customers

In a startling disclosure, the proprietor of a luxury jewellery firm compelled employees to feign as shoppers to mislead backers in a massive £170 million diamond deception, as revealed by a BBC investigation. Vashi Dominguez, a charismatic diamond dealer, built a reputation supplying gems to the affluent before expanding into retail with stores in prime locations like London’s Covent Garden. His business, Vashi, promised customers bespoke jewellery and discounted diamonds, attracting high-profile investors including Pret a Manger’s former CEO Clive Schlee and mobile phone billionaire John Caudwell. However, behind the glamorous facade, the enterprise was struggling. Internal documents exposed that sales figures were grossly inflated, with actual revenue at just £5 million in 2021 compared to the reported £100 million. To maintain the illusion of success, Dominguez directed staff to pose as customers during potential investor visits, and even had untrained employees simulate goldsmithing work. The deception extended to customers, with allegations that diamonds were misrepresented by altering quality inscriptions. When the company collapsed in April 2023, investors discovered that the purported £157 million diamond stock was valued at merely £100,000, leaving creditors owed £170 million. Despite the scale of the fraud, authorities have not launched an investigation. The Metropolitan Police and Serious Fraud Office have declined to pursue the case, citing it as not complex enough for their remit. Dominguez fled to Dubai on the day of the company’s liquidation and remains at large, with private investigators unable to locate him. The liquidator, Benji Dymant, expressed frustration at the lack of cooperation from Dominguez and the absence of a police probe. Investors, who lost substantial sums, are baffled by the inaction and question how such a significant fraud can go uninvestigated in the UK. The scandal highlights vulnerabilities in investment due diligence and regulatory oversight, serving as a cautionary tale about the risks of high-stakes business ventures.