The Glittering Illusion: How a Jewellery Tycoon Vanished After a £170m Diamond Scam

For years, Vashi Dominguez dazzled investors and customers alike with the promise of diamonds, glamour, and innovation. He sold himself not only as a diamond dealer to the wealthy but also as the visionary behind a high-street revolution in jewellery retail. His shops sparkled in London’s Covent Garden and other major cities, where customers were invited to watch their bespoke creations take shape before their eyes.

But behind the gleaming display cases lay a web of deception that would unravel into the UK’s largest-ever diamond fraud. By the time Dominguez’s company collapsed in 2023, it owed creditors and investors £170 million. What had once looked like a shining success story turned out to be little more than smoke, mirrors – and cheap stones.

A charismatic salesman

Dominguez was no stranger to the spotlight. With charm, confidence, and a flair for showmanship, he presented himself as a trusted insider in the luxury jewellery world. Television appearances, celebrity connections, and glossy business plans lent credibility to his image.

“He was magnetic, the Pied Piper of jewellery,” recalls Will Hayward, a former store manager. “People believed in him because he made them believe.”

High-profile backers, including former Pret a Manger boss Clive Schlee and billionaire John Caudwell, were convinced to part with their money. Others followed simply because, as one investor admitted, “if the smart money was in, why wouldn’t you be?”

A façade of success

Behind the velvet curtains, however, staff began noticing cracks in the illusion. Stores in prime locations drew only a handful of real customers each day. To mask the problem, employees were instructed to pose as buyers whenever potential investors visited. Sales staff were told to sit at jewellers’ benches and pretend to craft pieces they had never been trained to make.

“It was a performance,” Hayward says. “Everything was staged to convince investors the business was thriving.”

Even customers weren’t safe from the deceit. Inscribed identification numbers were allegedly scratched off cheaper, lower-quality diamonds and passed off as more valuable stones.

The company’s accounts presented an even bigger fiction. Records filed at Companies House boasted sales of more than £100 million in 2021. In reality, internal figures showed sales closer to £5 million.

The collapse

Despite the weak foundations, Dominguez kept up appearances. Company funds covered luxury cars, central London apartments, and an extravagant flagship store outfitted with interactive screens and designer furniture.

When the bubble burst in April 2023, investors were assured the company still held £157 million worth of diamonds. In truth, an independent valuation revealed stock worth barely £100,000.

“It was breathtaking,” says gemologist Lezlie Bailey, who worked at the company. “The diamonds just weren’t there.”

The vanishing act

As creditors scrambled for answers, Dominguez himself vanished. Investigators say he boarded a flight to Dubai the very day a court ordered his company wound up. Private detectives have reported sightings, but no confirmed trace has been found since.

The Metropolitan Police and Serious Fraud Office have both declined to pursue the case, citing jurisdictional and complexity issues – a decision that has left many victims furious. “This was bigger than some of Britain’s most famous heists, and yet no one is looking for him,” says investor Michael Moszynski.

Liquidator Benji Dymant, who has been combing through the company’s accounts, says there is little evidence Dominguez walked away with vast hidden fortunes. “We haven’t seen large sums stashed offshore,” he explains. “But the money is gone, and so is he.”

An unfinished story

For those who lost millions, questions remain. Was this an elaborate con from the start, or a failed business that spiraled into fraud when reality couldn’t match the dream?

Mark Schneider, one of the investors who lost nearly £750,000, still wrestles with that uncertainty. “I don’t know if he panicked when things weren’t working out, or if it was always the plan,” he says.

What is clear is that Dominguez’s empire was built on sparkle and spectacle, a façade that fooled some of the sharpest minds in business. Now, with investors nursing heavy losses and authorities unwilling to act, the man once hailed as a diamond visionary remains an elusive fugitive.

The diamonds have vanished. So has their dealer. And for those left behind, so too has the trust in what once glittered so brightly.