Alleged Russian Gangsters Among 12 Accused In Diamond District Fraud

NEW YORK (CBSNewYork) -- Authorities announced charges against a dozen suspects in 'a global conspiracy to defraud diamond dealers' on Wednesday.

As 1010 WINS' Al Jones reported, nine alleged Russian gangsters were among those named in the federal indictment for the fraud that cost victims over $9-million.

Victims were from New York City, Las Vegas, and Mumbai -- one victim lost $7-million to the fraud which allegedly included bad checks and forged documents.

"Centered in Manhattan's diamond district, America's busiest hub in the diamond trade, the defendants allegedly took advantage of an industrywide system of credit and trust to obtain largely untraceable diamonds, and then, using various allegedly illegal schemes, refused to pay," acting Manhattan U.S. Attorney Joon Kim said.

The stolen stones were then re-sold in Manhattan's diamond district. The group focused on small round diamonds that experts said are not numbered, and are impossible to chase.