Edward Carlos St. Mary III, a businessman from Houston, Texas, has been accused of stealing more than $3 million worth of uncut diamonds through a web of lies and fake documents. St. Mary claimed he was going to buy nearly 287 carats of diamonds from a well-known diamond company based overseas. These diamonds are raw, meaning they haven’t yet been cut into the sparkling gems we see in jewelry stores.
Back in April 2021, St. Mary met with the owner of the diamond company in India. They began to discuss a deal. Over the next few months, they exchanged many messages and agreed on a sale price of around $3.275 million. Everything seemed fine on the surface. St. Mary appeared trustworthy and even showed documents to prove he had the money in his bank account, ready to make the purchase.
But those documents weren’t real.
He sent fake bank records and made up stories about his bank, claiming there were delays and issues that were out of his control. The diamond company believed him and continued with the sale, trusting that the money would come soon.
Zaven Yeghiazaryan Pleads Guilty to 13-Count Fraud and Laundering Scheme
Diamonds Delivered, But Never Paid For
On June 11, 2021, the diamond company sent the diamonds to the United States. They used a professional security and transport company to make sure the diamonds arrived safely. The diamonds were delivered to New York City, and were supposed to be handed over to St. Mary only after he made the payment.
But that never happened.
Instead, St. Mary made more excuses, saying there were banking problems and reasons he couldn’t send the money just yet. He kept promising that the payment was on the way. Then, on August 4, 2021, without paying anything and without the diamond company’s permission, he went to the security company’s office in New York and picked up the diamonds.
He walked away with $3 million worth of uncut diamonds — without paying a cent.
Even after taking the diamonds, he didn’t stop lying. He told the diamond company that the gems were still being held by the security company. He said he was still trying to sort out the bank issues. As time passed, he went even further and claimed he had already sent the money. He shared a fake bank statement showing a wire transfer of over $3 million. But when investigators checked, they found no such transfer had ever taken place.
Lies Unraveled and Charges Filed
In December 2021, after months of delay and confusion, St. Mary finally admitted to the diamond company that he hadn’t made the payment. But even in this message, he tried to blame his banker, saying the banker had misled him into thinking the funds had already been sent.
Darrell Devonish’s $900K Food Program Fraud Ends in 41-Month Sentence
However, the investigation revealed that he had never even spoken to anyone at his bank about this payment. It was all a part of his plan to get the diamonds without paying for them. To this day, the diamonds have neither been paid for nor returned to the company that owns them.
As a result, Edward Carlos St. Mary III was arrested and charged with wire fraud. Wire fraud is a serious crime that involves using phones, emails, or other electronic tools to trick people and steal money or property. If found guilty, St. Mary could face up to 20 years in prison.
The charges were officially announced by Jay Clayton, the United States Attorney for the Southern District of New York, and Christopher G. Raia, the Assistant Director in Charge of the FBI’s New York Field Office. They praised the work of the FBI in uncovering this scheme and emphasized the importance of keeping New York’s Diamond District — one of the biggest centers for precious gems worldwide — free from fraud.
This case is being handled by the Office’s General Crimes Division, with Assistant U.S. Attorneys Remy Grosbard and Ariana Bloom leading the prosecution. For now, St. Mary is presumed innocent unless proven guilty in court.
