A shocking new investigation reveals how luxury jewellery entrepreneur Vashi Dominguez orchestrated the UK’s biggest diamond scam, duping investors out of £170 million while instructing his own staff to act as customers.
Vashi Dominguez built his reputation as a diamond dealer to the wealthy, appearing on ITV’s This Morning with hosts Holly Willoughby and Phillip Schofield, showcasing multi-million-pound jewels. According to BBC News, Dominguez cultivated an image of glamour and expertise, earning him the nickname “the Pied Piper of jewellery retail.”
By 2017, his operation had expanded into a high street brand, with stores in London, Birmingham, and Manchester. Customers were promised bespoke jewellery experiences, observing their pieces being crafted on-site while paying premium prices for high-end diamonds.
The Elaborate Investor Deception
To secure investor funding, LBC reports that staff were instructed to stage elaborate scenes in stores, posing as customers and pretending to craft jewellery. Emails show Dominguez told employees these setups were “direct from Vashi” to impress potential investors during surprise store visits. Former staff described the experience as “a total facade” designed to create the illusion of a thriving business.
Investors, including high-profile figures like Clive Schlee, John Caudwell, and media executive Mark Schneider, were persuaded by Dominguez’s charisma, detailed business plans, and falsified accounts. Sales figures submitted to investors in 2021 reported over £100 million, but internal documents revealed actual sales were closer to £5 million—only 5% of the claimed value.
Vashi Dominguez appeared on This Morning, presenting high-end diamonds and cultivating a glamorous public image that later helped him defraud investors.
Fraudulent Diamonds
BBC Panorama reports that Dominguez also deceived customers. Gemologist Lezlie Bailey explained that smaller or lower-quality diamonds were sold in place of purchased stones, with original GIA inscriptions scratched off. Promised stock of £157 million in diamonds was later valued at just £100,000, exposing the extent of the financial fraud.
Extravagance Amid Collapse
While the company struggled, Dominguez enjoyed a luxurious lifestyle, funded by the business. He had access to a fleet of luxury cars, including a Lamborghini, and multiple central London flats. By April 2023, the Vashi retail chain collapsed under £170 million of debt, leaving more than £100 million owed to investors according to Daily News.
Despite the massive losses, Dominguez disappeared, reportedly flying to Dubai on the day the court ordered the company to be wound up. Authorities, including the Metropolitan Police and the Serious Fraud Office, have not launched formal investigations. The liquidator, Benji Dymant, says there is no evidence of bulk transfers of funds to offshore accounts, leaving questions about where the missing money went.
Fallout and Investor Shock
Investors remain stunned, with many unable to recover their investments. The case has raised serious questions about regulatory oversight, with the SFO noting that it only handles a small number of high-level economic crimes each year. Meanwhile, the BBC investigation paints a picture of a man who used spectacle, charisma, and falsified accounts to convince both investors and customers that his business was thriving.
People Also Ask: FAQs
Who is Vashi Dominguez?
Vashi Dominguez is a luxury jewellery entrepreneur who built a reputation as a diamond dealer to the wealthy, eventually expanding to a high street retail chain.
How much did investors lose in the Vashi scam?
Investors reportedly lost over £100 million when it was revealed that the company’s diamond stock and accounts were massively overstated.
Why haven’t the police or SFO investigated?
The Metropolitan Police and Serious Fraud Office have cited limited jurisdiction or prioritization, stating that the case does not meet the threshold for a high-level economic crime investigation.
How did Dominguez trick customers as well as investors?
Customers were sold lower-quality diamonds than promised, with original inscriptions removed, while investors were misled by staged store activity and falsified accounts.
Final Thoughts
The Vashi Dominguez scandal exposes the extreme risks of investor trust being manipulated by charisma and showmanship. While authorities have yet to take significant action, the case underscores how flashy appearances and misleading financial statements can mask massive fraud, leaving both investors and customers vulnerable to devastating losses.
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