Jewelry Television Sues Lloyd’s of London

Jewelry Television is suing Lloyd’s of London to recover millions of dollars in jewelry the cable retailer claims were purchased through an account owned by the Office of the Comptroller of New York City, the Knoxville News Sentinel reports.

Knoxville, Tenn.-based company said it lost $2.8 million from the theft of pearls, precious and semi-precious stones, jewels and jewelry, watches, gold, silver, platinum, and other precious metals, the newspaper reports. A payment processing company reimbursed Jewelry Television $1.4 million. The jewelry retailer is seeking $1.6 million plus costs and interest from the property’s insurer, Lloyd’s of London.

In its lawsuit filed first in Knox County Chancery Court Feb. 28 and again filed in U.S. District Court in Knoxville, the jewelry retailer said in 2006 and 2007 a New York City area resident named Tracey Ball placed orders for about $3.5 million in products from the company, the newspaper reports.

Ball’s purchases were paid for with electronic checks from an account at JP Morgan Chase. Jewelry Television contends that Ball reported the account was his. Once the e-checks cleared, Ball’s order was placed.

JP Morgan cleared payments from Ball to Jewelry Television for 13 months, but suspended shipments in March 2007 and asked JP Morgan to verify the account. JP Morgan notified the jewelry retailer that no further transactions should be approved. Then on March 29, 2007, Jewelry Television said it was notified by New York City that it owned the account and had not approved the transaction.