You are here

Crime Watch

Crime Watch

TWO PLEAD GUILTY, ONE CONVICTED IN FRAUD CASE

A U.S. District Court jury in Maryland has found Timothy C. Starinieri guilty of conspiracy and bank fraud in a case involving loose diamond inventories. Starinieri is the former chief financial officer at the now-defunct retailer Gouterman & Sheffey Inc. in McLean, Va. His accomplices in the scheme both pleaded guilty to related charges.

Starinieri, store President Steven M. Gouterman and New York City diamond supplier Jack Spitzer were accused of shifting diamonds between New York City and the company’s four retail stores in the Washington D.C.-area to inflate the value of the company’s inventory to serve as collateral for bank loans.

Earlier, Gouterman pleaded guilty to bank fraud and conspiracy charges; Spitzer pleaded guilty to a charge of aiding and abetting the commission of a bank fraud.

According to court documents, Starinieri and Gouterman arranged with Spitzer to supply loose diamonds to be included in bank-supervised inventory counts in 1990 and 1991. The diamonds were returned after the counts were completed.

In 1990, Gouterman & Sheffey obtained a $1.2 million line of credit and a year later unsuccessfully sought to increase the loan by $300,000. In 1991, the retailer declared bankruptcy. Its chief lender, Maryland National Bank, claimed losses of $1.5 million as a result.

Sentencing for all three is scheduled for October.

Register For

JCK Las Vegas

Friday, June 3 - Monday, June 6, 2016

Register Today!
Subscribe now to

JCK News Daily

Receive the latest news directly to your inbox



Um....ok, just um....cause you don't ever want to hear the rest of it.

These assholes are killing our industry. I have not much more to add...

The Tucson show is always fun but this year instead of just shopping...

In my experience, Millennials are more than happy to pay whatever the...

Well that is good news for the industry for the coming decade!...