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Articles from DIAMOND JEWELLERY (845 Articles), INDUSTRY ASSOCIATIONS (258 Articles)


 










Diamond Exchange poised for court

The application to wind up Diamond Exchange is set for a Supreme Court hearing next week, while it appears there are still many customers waiting for their order or a refund from the company.
A 519G wind-up application was filed on September 15 by Tim Stanford of Morgan Trusscolt Capital (MTC), who is claiming an amount of $235,923.38 relating to a loan agreement entered into in October 2009.

The case has been scheduled to be heard on Wednesday, October 13.

Diamond Exchange chief financial officer Simon Middleton said two weeks ago the matter would be resolved the following week, but Stanford told Jeweller late yesterday that he had heard very little from the company, and the matter would be resolved in court next week.

Following the wind-up application, which coincided with an influx of unrelated consumer complaints about the company to the JAA, Middleton told Jeweller on September 20, “We’ve had discussions with them [the creditor] this morning, so hopefully we can find some level ground. We think that it’s appropriate that when there’s a winding-up order, and even though we dispute it [the order], that it’s not appropriate to be trading so we will re-open on Wednesday.”

Stanford said he was expecting that the court would act quickly. When asked what he thought the outcome of the directions hearing would be he said, “They [Diamond Exchange] might request some form of extension, but I doubt whether they would get it given they have had plenty of time so the judge at that point will have to consider appointing a liquidator.”

The other option for the judge is to dismiss the wind-up application.

Diamond Exchange eventually remained closed for four days rather than the proposed two days and then re-opened for business. The Jewellers Association of Australia (JAA) has been handling more than 30 consumer complaints which resulted in it posting an “important Announcement Regarding Diamond Exchange” on its website – jaa.com.au.

Jeweller has been inundated with consumer complaints from people who have read the stories on Jewellermagazine.com and many have detailed their unhappiness with Diamond Exchange. One went as far as advising, “never buy diamonds online”.

The JAA is now advising anyone who is still waiting for their order or refund from the online retailer to contact Ron Lane of Garland Hawthorn Brahe Lawyers on (03) 9629 5551.

JAA chief executive Ian Hadassin said, “We are advising those consumers who have contacted us that the solicitors for the petitioning creditor who has instituted winding up proceedings are Garland Hawthorn Brahe Lawyers. If other creditors want to appear they should contact or get lawyers to contact them and let them know that they will be standing in line to be substituted as a creditor if his client settles.”

Two consumers that contacted Jeweller said Diamond Exchange staff told them the company had been sold, but Sanford said, “I would be very surprised if that has happened.”

The Supreme Court documents filed by MTC list Diamond Exchange’s directors as Wayne Soloman, James Francis and John Buckby, but an Australian Security and Investments Commission (ASIC) record shows that on September 21 a change of officeholders notification had been filed with the corporate watchdog. Further documents show that Buckby had resigned from Diamond Exchange.

Of most concern to many in the industry, including the JAA, is that customers’ personal records of their dealings with Diamond Exchange suggest that the company was failing to make refunds to existing customers within the promised 14 days while at the same time it was taking upfront payments from new buyers.

More reading:
'Never buy diamonds online', urge stung customers
Australian Securities & Investments Commission
Diamond Exchange woes continue
Diamond Exchange stops trading
Diamond Exchange to be wound up?









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Your Say

Horrified
My partner ordered a diamond in August from Diamond Exchange. He made several phone calls last week trying to find out when it was due for delivery and did not get a reply. He looked online last night and found your articles about the Diamond Exchange. He was horrified and told me about the 'surprise' as he did not know what to do.

I have spent the last three hours on the phone to various people including the JAA and Diamond Exchange in both Sydney and Melbourne. They could not give me a straight answer, promised to call back and did not and tried to tell me they could not give me a refund at the Sydney office (they have eftpos so I think that is a load of crap).

They had a similar diamond in stock in Sydney and when I said I would come in and pick it up it suddenly was on hold as someone else had put a deposit on it and was also coming in today to pay for it in full. When I asked why she offered it to me she said she didn’t realise it was on hold. Phone calls to Brisbane and Melbourne came up with no diamonds anywhere near what we ordered in stock.

Apparently 'dispatch' was the only place who knew where my ordered diamond was and they were not in today. I asked to speak to the accounts manager who was 'on a call'. I said I would wait for him to finish. When I finally threatened to go in person to the office they said a refund would be given today to my bank account. I have asked them to send an email via their bank when the transaction has taken place and I am holding my breath to see if we actually get it.

My partner only found the articles last night after significant searching, I pity anyone else who gives their money to the Diamond Exchange between now and the court date, if you go to their website or call them it is business as usual and you would have no idea there were any problems.
posted by Colleen McKenna on October 07, 2010 12:27

Update to Horrified
Just wanted to update people on my progress with getting my refund from the Diamond Exchange. After 6 hours and 12 phone calls to both the Sydney and Melbourne office I was finally transferred to Simon Middleton CFO (I had repeatedly been asking to speak to him all day and he was always in a meeting). He promised my refund would be done first thing Friday morning. I checked my email account late Thursday evening and a confirmation of transaction letter was there from the ANZ bank.

This morning my account shows the refund in full!!

So to anyone else who is having difficulties with the Diamond Exchange I say put the pressure on! I was ringing every half hour, persisting with the line that I was going to go in person to the office if it wasn’t sorted out that day and continually asking for the account manager.

Don’t let them tell you they will call you back as they wont. Tell them how long you will give them to sort it out before you call back and keep calling.
posted by Colleen McKenna on October 08, 2010 10:54


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