Recently, a conflict within the celebrated Diamond District in New York City led to accusations of a jewelry scam. At the forefront of the conflict is the popular jewelry brand TraxNYC. Its founder Maksud Agadjani was accused by a competing company, Akay Diamonds, of scamming one of his customers. As Agadjani explains, a customer was sold a 14K white gold necklace with quality diamonds, but was allegedly later found to be only 10K gold with lower-quality diamonds. 

The customer was introduced to TraxNYC’s name and website during the transaction, giving the impression to the customer that the two companies were associated. Agadjani was compelled to turn to social media in an attempt to expose what he claimed was fraudulent activity between his rival jeweler, who was using his reputable brand in an attempt to draw in innocent, unwary customers. However, Agadjani was able to refund his customer as a gesture of goodwill but soon found himself in a physical confrontation with his rival jeweler.

The situation has also raised fears about scams and impersonators in the precious stone business, especially where there is a concentration of small scale business people. Although the rival business is denying claims that it is involved in a scam, it is a wake-up call for customers to ensure that what they buy is authentic before purchasing.