Gregory Diamond
10-18-2005, 04:27 PM
Four GIA employees fired in lab shake-up
OCTOBER 18, 2005 - Carlsbad, Calif. -- While continuing to defend itself against litigation that it falsified diamond certificates, the Gemological Institute of America (GIA) announced today that four employees of its New York gemological laboratory have been terminated as the result of a four-month independent review.
The review was conducted by a special committee of the Board of Governors, which surveyed policies and practices currently in place at the lab. The action was prompted by a lawsuit filed by diamond dealer Max Pincione, which named GIA and Vivid Collection among four defendants.
The suit was filed to the Supreme Court of the Sate of New York in April, with an amended complaint filed in September. According to the original complaint, Pincione claims GIA was paid by Vivid to ?upgrade? the quality of the diamonds Vivid sold to him.
?The Board was deeply disturbed by the claims asserted in the complaint, and we felt that we had a responsibility to ourselves, our clients, and the public to not only look into them but to also thoroughly examine all lab practices. That is precisely what we have done,? said Ralph Destino, chairman of GIA's Board of Governors, in a press statement.
The committee to investigate the allegations in the lawsuit and any related business practices was formed in May. A review was headed up by the law firm of DLA Piper Rudnick Gray Cary US LLP under the leadership of Thomas F. O'Neil III, a partner based in Washington, D.C.
Destino said O'Neil has an outstanding reputation as a thorough and tough investigator. O'Neil said dozens of witnesses and thousands of documents, including diamond grading reports, were reviewed during the extensive four-month review.
?The investigation revealed that, although GIA had undertaken to fortify various facets of the grading process during the past decade, additional measures are warranted,? says O'Neil in the release. ?Accordingly, we have presented for the board's consideration a number of possible enhancements of, and supplements to, existing policies governing the grading process and compliance in general. The board already has decided to implement a number of our recommendations, including the appointment of a compliance officer in the laboratory who will report to the general counsel and will oversee the enforcement of the institute's compliance policies.?
In addition to the termination of the four lab employees in New York, Destino announced several other key personal changes as a consequence of the investigation: Thomas M. Moses, G.G., has been named the new head of the GIA Lab, with the title of senior vice president, GIA Laboratory and Research; and Thomas C. Yonelunas, former head of the GIA Laboratory, has tendered his resignation, effective December 31 to ensure a smooth transition of leadership. Yonelunas was not implicated in any violations of GIA's Professional Ethics and Conduct Compliance Statement, the release asserted.
?We have zero tolerance for any misconduct by employees of the laboratory. They undermine confidence in GIA's ability to serve the diamond industry and ensure the public's trust in gems and jewelry,? said Destino. ?Going forward, all GIA employees will be obligated to report all suspected violations of the institute's compliance policies to the new compliance officer.
?At the same time,? he added,?our policies apply with equal force to lab clients. We, therefore, will not tolerate any violations of our code of ethics by clients of the lab, most particularly improper attempts to influence the outcome of our grading reports. We have identified a small community of lab clients who are implicated in such actions and, rest assured, they will be dealt with swiftly and decisively.?
GIA president William E. Boyajian said in the statement, ?I want to thank the Board of Governors for their strong leadership in this sensitive matter. Because of GIA's important position in the industry and in the public eye as the leading authority in gemology, we take very seriously the need for our practices, procedures, and employees to be beyond reproach.?
Boyajian praised Moses' experience and ability to carry forward as the head of the lab and thanked the departing Yonelunas.
?Tom Moses is a man of unquestioned integrity and professionalism, as he has demonstrated over his 23 years of outstanding service to the Institute,? Boyajian said. ?His leadership will be essential in bringing a serious, systematic approach to our efforts to strengthen our organization even further. At the same time, I want to thank Tom Yonelunas for his many years of service to GIA and the entire industry.?
OCTOBER 18, 2005 - Carlsbad, Calif. -- While continuing to defend itself against litigation that it falsified diamond certificates, the Gemological Institute of America (GIA) announced today that four employees of its New York gemological laboratory have been terminated as the result of a four-month independent review.
The review was conducted by a special committee of the Board of Governors, which surveyed policies and practices currently in place at the lab. The action was prompted by a lawsuit filed by diamond dealer Max Pincione, which named GIA and Vivid Collection among four defendants.
The suit was filed to the Supreme Court of the Sate of New York in April, with an amended complaint filed in September. According to the original complaint, Pincione claims GIA was paid by Vivid to ?upgrade? the quality of the diamonds Vivid sold to him.
?The Board was deeply disturbed by the claims asserted in the complaint, and we felt that we had a responsibility to ourselves, our clients, and the public to not only look into them but to also thoroughly examine all lab practices. That is precisely what we have done,? said Ralph Destino, chairman of GIA's Board of Governors, in a press statement.
The committee to investigate the allegations in the lawsuit and any related business practices was formed in May. A review was headed up by the law firm of DLA Piper Rudnick Gray Cary US LLP under the leadership of Thomas F. O'Neil III, a partner based in Washington, D.C.
Destino said O'Neil has an outstanding reputation as a thorough and tough investigator. O'Neil said dozens of witnesses and thousands of documents, including diamond grading reports, were reviewed during the extensive four-month review.
?The investigation revealed that, although GIA had undertaken to fortify various facets of the grading process during the past decade, additional measures are warranted,? says O'Neil in the release. ?Accordingly, we have presented for the board's consideration a number of possible enhancements of, and supplements to, existing policies governing the grading process and compliance in general. The board already has decided to implement a number of our recommendations, including the appointment of a compliance officer in the laboratory who will report to the general counsel and will oversee the enforcement of the institute's compliance policies.?
In addition to the termination of the four lab employees in New York, Destino announced several other key personal changes as a consequence of the investigation: Thomas M. Moses, G.G., has been named the new head of the GIA Lab, with the title of senior vice president, GIA Laboratory and Research; and Thomas C. Yonelunas, former head of the GIA Laboratory, has tendered his resignation, effective December 31 to ensure a smooth transition of leadership. Yonelunas was not implicated in any violations of GIA's Professional Ethics and Conduct Compliance Statement, the release asserted.
?We have zero tolerance for any misconduct by employees of the laboratory. They undermine confidence in GIA's ability to serve the diamond industry and ensure the public's trust in gems and jewelry,? said Destino. ?Going forward, all GIA employees will be obligated to report all suspected violations of the institute's compliance policies to the new compliance officer.
?At the same time,? he added,?our policies apply with equal force to lab clients. We, therefore, will not tolerate any violations of our code of ethics by clients of the lab, most particularly improper attempts to influence the outcome of our grading reports. We have identified a small community of lab clients who are implicated in such actions and, rest assured, they will be dealt with swiftly and decisively.?
GIA president William E. Boyajian said in the statement, ?I want to thank the Board of Governors for their strong leadership in this sensitive matter. Because of GIA's important position in the industry and in the public eye as the leading authority in gemology, we take very seriously the need for our practices, procedures, and employees to be beyond reproach.?
Boyajian praised Moses' experience and ability to carry forward as the head of the lab and thanked the departing Yonelunas.
?Tom Moses is a man of unquestioned integrity and professionalism, as he has demonstrated over his 23 years of outstanding service to the Institute,? Boyajian said. ?His leadership will be essential in bringing a serious, systematic approach to our efforts to strengthen our organization even further. At the same time, I want to thank Tom Yonelunas for his many years of service to GIA and the entire industry.?