Diamond Nexus has made its way into the jewelry world by the tried and true advertising scam of 'bait and switch'. While they advertised for years that they were selling 'man-made diamonds' for $150/ct, and at the same time denigrating other simulant sellers as only offering 'plain CZ' that was only suitable for 'cheap bling', the facts are that DNL has sold nothing more than plain CZ themselves. Nothing new and not the 'lab grown diamonds' with the 'same physical and optical properties' that they advertised, and that innumerable consumers believed they were buying when they purchased.
By pretending to offer something that consumers want (real, colorless lab grown diamonds) at prices that will never be available ($150/ct is typical cost of cutting for real diamonds, thus, lab grown diamonds could not be sold at $150/ct as it would barely cover cutting cost, much less the cost of growing the diamond), they have parlayed their way into the pantheon of well known bait and switch scam artists.
While many reputable jewelers have been shocked at DNL's continuing ethical lapses and even bullying lawsuits meant to derail a gem lab interested in publishing the truth about their product (its plain CZ), a detailed investigation into who are the two masterminds behind this consumer scam reveals the truth behind the founders of DNL. After reading, you'll understand why such outrageous business practices such as publishing 'independent' reviews that recommend their own company as the best choice for 'synthetic diamonds' are nothing but a continuing lifestyle, from two former convicts with no concern beyond keeping the money flowing in and any legal enforcement at bay.
Since its inception Diamond Nexus Labs has strived to conceal the names and identities of its owners and founders. However two names appear time and time again: "Gary LaCourt" and "Robert Joseph".
******************************************
WHO IS GARY LACOURT?
LaCourt first portrayed himself as an independent "expert in refractive dynamics and a technical consultant who has recently done independent research for a consortium of synthetic and a natural gemstone producers including Diamond Nexus Labs" in various marketing type articles concerning synthetic diamonds. All of LaCourt's articles concluded with the endorsement of his own company's CZ's, Diamond Nexus Labs, as the best value in synthetic / simulant diamonds (he often tried to blur the lines between the two). But since he was interviewed concerning the making of the Miss Universe crown, it is now public knowledge that LaCourt is the CEO. He now has a blog spot with his picture and a declaration of such (therefore it is no longer a secret): http://garylacourt.blogspot.com/
LACOURT GOES TO PRISON
What has already been pointed out on several websites is that Gary LaCourt is also a convicted fraudster. Back in the 90's LaCourt started a courier service called, Arrow Express, that eventually went bankrupt with debts in excess of $2 million. LaCourt devised a scheme to divert and launder more than $180,000 in payments through dummy corporations he created in an attempt to defraud the IRS and creditors. He was eventually convicted in December, 1998 of conspiracy to commit bankruptcy fraud and tax fraud. He was sentenced to 18 months in prison and 2 years probation. He served time in Duluth prison camp and was released in 3/2003.
You can read more about the indictment in the following Milwaukee Journal Sentinel article date 4/8/98: http://img191.imageshack.us/img191/1446/lacourtarticle1.gif
You can read more about LaCourt's conviction in the following Milwaukee Journal Sentinel article date 12/15/98: http://img571.imageshack.us/img571/2299/lacourtarticle2.gif
You can read more about LaCourt's conviction in the following Milwaukee Journal Sentinel article date 12/15/98: http://img571.imageshack.us/img571/2299/lacourtarticle2.gif
LaCourt's objectification of women is quite disturbing to say the least.
LaCourt's other venture prior to DNL was a supposed marketing firm named "Group Solaris"
LaCourt also authored a number of supposed "scientific articles" about the Diamond Nexus CZ in which he included the following paragraph about the author:
Gary La Court is a legal consultant and frequent author. He can be reached at [email protected] http://www.groupsolaris.com
These articles effectively create the link between Diamond Nexus Labs, Group Solaris and the despicable RainingWomen.com. Although Diamond Nexus has removed this author information, there still are various websites that still publish the article with its original text. For example: http://www.cbn.co.za/knowledge/index.php?article_id=17119&page=article
So this is the background of Gary LaCourt: convicted felon and fraudster, failed business owner, and pathetic womanizer.
******************************************
WHO IS "ROBERT JOSEPH"?
Robert Joseph is the self-described "expert jeweler" co-founder of Diamond Nexus Labs as found in the following article: http://www.diamondjug.com/diamond-nexus-labs-fraud/
But who is he really?
According to registry info found on DomainTools.com, Diamond NexusLabs.com was first registered on Jan 6th, 2005 to the following individual:
Robert Joseph
1657 Shamrock Court Aurora, IL 60505 US Phone: 414-852-3737
Here is a link to the registry info: http://img109.imageshack.us/img109/4714/dnlregistrationinfo.gif
Using public records found through Intelius.com, a well known information commerce company, we find that this address is also the address or former address of: Robert Joseph FEBRE.
Here is a link to the report: http://img404.imageshack.us/img404/6247/febrebackgroundreport.gif
******************************************
WHO IS "ROBERT JOSEPH FEBRE"?
It appears that Robert Joseph Febre, a serial con-artist and 3 time convicted felon, has now assumed the identity of "Robert Joseph" likely to conceal his very shady past and to hide his involvement in the current scam, Diamond Nexus Labs, from the US Government.
ROBERT JOSEPH FEBRE'S 1st CONVICTION
Here is a link to a newspaper article dated 4/12/1983 announcing Febre's indictment on 59 counts of mail fraud and income tax invasion. http://img241.imageshack.us/img241/7158/febre1stindictment.gif
Febre's schemes included schemes to defraud involving mail-order promotions including: "get-rich-quick plans, how to get an auto without cost, earn $20k a year on other people's money, or live in an expensive house without money, according to the indictment."
The 59 counts included 4 counts of tax fraud for fraudulently reporting no income, and the creation of a bogus church with himself named as the minister in order to take advantage of the tax-exempt status of religious institutions. Febre even signed his tax returns: "Rev. Robert Febre". And just like any con-artist, Febre worked under a number of aliases and false identities. The indictment included six counts of using a false name.
Here is a link to newspaper article concerning his conviction: http://img69.imageshack.us/img69/5436/febre1stconviction.gif
In November of 1983, Robert Joseph Febre plead guilty to mail fraud and tax evasion and was sentenced to 22 months in prison and fined $100k. (PROVIDE LINK TO ARTICLE)
Febre lived in the Toledo, Ohio area and ran the schemes under the name of several businesses including: Transworld Publishing Co, Codex Inc, Stone Publishing Co., and Meredith Media.
FTC vs. ROBERT JOSEPH FEBRE
Unfortunately serving nearly 2 years in jail was not enough to get Febre to mend his ways. Febre moved from Ohio to Illinois and refined his methods of scamming unsuspecting victims. Nevertheless, his scams eventually caught the attention of the US Government and the FTC. In October of 1996, a federal court ordered that Febre and his new company, Pace Publishing, to pay $16 million in restitution to 200,000 victims. The details can be read here on the Federal Trade Commission's website:
http://www.ftc.gov/opa/1996/10/pase.shtm
The scams included more work at home business opportunities and programs that purported to offer grants, loans and credit cards to consumers. According to a Chicago Sun-Times article (found here): "Among those fleeced in the scams were victims of the severe flooding in the Midwest in 1993, who sent Febre money believing they were paying application fees for loans. Instead, they were sent books telling them where to apply for loans."
Link to the Chicago Times article http://img39.imageshack.us/img39/6026/febre2ndconviction.gif
According to FTC lawyer, Tim Hughes, The scam operated undetected for many years because Febre refunded money to anyone who complained to police or consumer agencies.
It is not surprising that Diamond Nexus Labs has taken the same approach and is willing to given refunds to any customers who submit complaints to the BBB, whether they bought their item 3 months ago or 3 years ago. As long as the victims who realized they have been conned into purchasing an ordinary CZ are silenced, they can continue scamming the unsuspecting new customers.
ROBERT JOSEPH FEBRE GOES BACK TO PRISON
As part of the FTC ruling (found on ftc.gov at the link above) Febre was prohibited from "making material misrepresentations about any work opportunity program or opportunities to obtain grants, loans, credit cards or other products or services". "The order would also require disclosure of any facts material to consumers' decisions to participate in or purchase their publications, products or services."
However like all serial con-artists, Febre just couldn't stop, and in May 2002, the US District Court in Northern Illinois sentenced 14 months in prison for criminal contempt for violating the final order in the FTV vs Robert Febre case. According to the project Scofflaw report found on the FTC website (link below): "In violation of the final order, Febre operated a new credit identity credit repair scam and deceptively offered a business opportunity scam that claimed consumers could make money by soliciting credit card applications. In addition Febre sold ten classic cars, including a Delorean, that were subject to a preliminary injunction asset freeze."
http://www.ftc.gov/opa/2003/08/scofflawreport.pdf
******************************************
GARY MEETS JOSEPH - DIAMONDNEXUSLABS.COM IS FOUNDED
Robert Joseph Febre was sentenced to 14 months in prison and was sent to Duluth prison camp. He was released in August 2003, just four months after Gary LaCourt finished his 18 month sentence, also at Duluth.
Here is a link to Federal Bureau of Prisons website where you can search for Febre and LaCourt http://www.bop.gov/iloc2/LocateInmate.jsp
Using the inmate locator number found via the link above, Duluth Penitentiary was contacted and confirmed that both inmates served time there.
This is most likely where Robert Joseph Febre met Gary LaCourt. Whether they cooked up the Diamond Nexus Labs scam here or after their release only they will know for sure. We can only speculate. But we do know that Robert Febre first registered DiamondNexusLabs.com in Jan 2005, just 2 months shy of LaCourt completing his two years of probation.
You may ask why would Robert Febre, the master con-man, would team up with Gary LaCourt, a failed businessman? Most likely because he needs a front man for his latest scheme: DiamondNexusLabs.com.
It comes as no surprise that Lautrec Corporation (the official name of Diamond Nexus Labs) is a corporation founded in Nevada despite no ties whatsoever with that state.
Why did they incorporate in Nevada? Because unlike other states, shareholders are not a matter of public record, and with the exception of an appointed Director (in this case, the front man, Gary LaCourt), the names of other officers in Nevada corp are protected and private. Nevada Corporate law also allows for "nominee" Director that stands in place of the "true" owner or controlling entity of the corporation (i.e. the true mastermind behind the DNL scam, Robert Joseph Febre).
Last but not least, unlike most other states, Nevada has no information sharing agreement with the IRS and does not provide personal or corporate financial records to the IRS. Given that both LaCourt and Febre are both convicted tax evaders, this would be very attractive to them. Not to mention that Febre still has unsatisfied judgments against him.
Below is the summary of a court judgment in the case of the State of Wisconsin vs. Ace Publishing. It appears that Febre still owes a $0.5 million to the people of Wisconsin.
And it is also worth mentioning that as of May 2007, Robert J Febre also has a $1.2 million dollar tax lien against all property belonging to him. Below is a link to a copy of the IRS tax lien:
DiamondNexusLabs.com is now using the threat of lawsuits to bully this very website, diamond.info, and outspoken DNL critics to try and suppress the truth. I am happy to see that Diamond.info has not caved to the pressure.
Here is a link to the lawsuits: http://www.diamondnexuslabs.com/legal
If you have a moment to peruse the supposed lawsuits, you will find that they read more like a DNL marketing brochure than a legal document. If one googles Diamond Nexus Labs reviews, they will find that DNL is literally marketing these lawsuits to potential customers searching for reviews of its products. It is just more deceitful trickery. It is an attempt to confuse and suppress the truth.
If one would like to know the true properties of the DNL gemstone and proof that it is just an every day, run of the mill CZ, you can follow the link below to the read detailed analysis performed by Anderson Materials Evaluation, Inc.
A blogger discusses and exposes more of Diamond Nexus Labs' ever changing fraudulent claims here: http://www.diamond.info/forum/index.php?showtopic=5248
Diamond Nexus Labs Reviews
Diamond Nexus has made its way into the jewelry world by the tried and true advertising scam of 'bait and switch'. While they advertised for years that they were selling 'man-made diamonds' for $150/ct, and at the same time denigrating other simulant sellers as only offering 'plain CZ' that was only suitable for 'cheap bling', the facts are that DNL has sold nothing more than plain CZ themselves. Nothing new and not the 'lab grown diamonds' with the 'same physical and optical properties' that they advertised, and that innumerable consumers believed they were buying when they purchased.
By pretending to offer something that consumers want (real, colorless lab grown diamonds) at prices that will never be available ($150/ct is typical cost of cutting for real diamonds, thus, lab grown diamonds could not be sold at $150/ct as it would barely cover cutting cost, much less the cost of growing the diamond), they have parlayed their way into the pantheon of well known bait and switch scam artists.
While many reputable jewelers have been shocked at DNL's continuing ethical lapses and even bullying lawsuits meant to derail a gem lab interested in publishing the truth about their product (its plain CZ), a detailed investigation into who are the two masterminds behind this consumer scam reveals the truth behind the founders of DNL. After reading, you'll understand why such outrageous business practices such as publishing 'independent' reviews that recommend their own company as the best choice for 'synthetic diamonds' are nothing but a continuing lifestyle, from two former convicts with no concern beyond keeping the money flowing in and any legal enforcement at bay.
Since its inception Diamond Nexus Labs has strived to conceal the names and identities of its owners and founders. However two names appear time and time again: "Gary LaCourt" and "Robert Joseph".
******************************************
WHO IS GARY LACOURT?
LaCourt first portrayed himself as an independent "expert in refractive dynamics and a technical consultant who has recently done independent research for a consortium of synthetic and a natural gemstone producers including Diamond Nexus Labs" in various marketing type articles concerning synthetic diamonds. All of LaCourt's articles concluded with the endorsement of his own company's CZ's, Diamond Nexus Labs, as the best value in synthetic / simulant diamonds (he often tried to blur the lines between the two). But since he was interviewed concerning the making of the Miss Universe crown, it is now public knowledge that LaCourt is the CEO. He now has a blog spot with his picture and a declaration of such (therefore it is no longer a secret): http://garylacourt.blogspot.com/
LACOURT GOES TO PRISON
What has already been pointed out on several websites is that Gary LaCourt is also a convicted fraudster. Back in the 90's LaCourt started a courier service called, Arrow Express, that eventually went bankrupt with debts in excess of $2 million. LaCourt devised a scheme to divert and launder more than $180,000 in payments through dummy corporations he created in an attempt to defraud the IRS and creditors. He was eventually convicted in December, 1998 of conspiracy to commit bankruptcy fraud and tax fraud. He was sentenced to 18 months in prison and 2 years probation. He served time in Duluth prison camp and was released in 3/2003.
You can read more about the indictment in the following Milwaukee Journal Sentinel article date 4/8/98: http://img191.imageshack.us/img191/1446/lacourtarticle1.gif
You can read more about LaCourt's conviction in the following Milwaukee Journal Sentinel article date 12/15/98: http://img571.imageshack.us/img571/2299/lacourtarticle2.gif
You can read more about LaCourt's conviction in the following Milwaukee Journal Sentinel article date 12/15/98: http://img571.imageshack.us/img571/2299/lacourtarticle2.gif
LaCourt's objectification of women is quite disturbing to say the least.
LaCourt's other venture prior to DNL was a supposed marketing firm named "Group Solaris"
http://web.archive.org/web/20040323215606/http://www.groupsolaris.com/
One will notice that both websites list the same telephone number: 1-800-645-4943
Both websites are also currently owned by Gary LaCourt
http://who.godaddy.com/WhoIs.aspx?domain=groupsolaris.com&prog_id=godaddy
http://who.godaddy.com/WhoIs.aspx?domain=rainingwomen.com&prog_id=godaddy
LaCourt also authored a number of supposed "scientific articles" about the Diamond Nexus CZ in which he included the following paragraph about the author:
Gary La Court is a legal consultant and frequent author. He can be reached at [email protected] http://www.groupsolaris.com
These articles effectively create the link between Diamond Nexus Labs, Group Solaris and the despicable RainingWomen.com. Although Diamond Nexus has removed this author information, there still are various websites that still publish the article with its original text. For example: http://www.cbn.co.za/knowledge/index.php?article_id=17119&page=article
So this is the background of Gary LaCourt: convicted felon and fraudster, failed business owner, and pathetic womanizer.
******************************************
WHO IS "ROBERT JOSEPH"?
Robert Joseph is the self-described "expert jeweler" co-founder of Diamond Nexus Labs as found in the following article: http://www.diamondjug.com/diamond-nexus-labs-fraud/
But who is he really?
According to registry info found on DomainTools.com, Diamond NexusLabs.com was first registered on Jan 6th, 2005 to the following individual:
Robert Joseph
1657 Shamrock Court Aurora, IL 60505 US Phone: 414-852-3737
Here is a link to the registry info: http://img109.imageshack.us/img109/4714/dnlregistrationinfo.gif
Using public records found through Intelius.com, a well known information commerce company, we find that this address is also the address or former address of: Robert Joseph FEBRE.
Here is a link to the report: http://img404.imageshack.us/img404/6247/febrebackgroundreport.gif
******************************************
WHO IS "ROBERT JOSEPH FEBRE"?
It appears that Robert Joseph Febre, a serial con-artist and 3 time convicted felon, has now assumed the identity of "Robert Joseph" likely to conceal his very shady past and to hide his involvement in the current scam, Diamond Nexus Labs, from the US Government.
ROBERT JOSEPH FEBRE'S 1st CONVICTION
Here is a link to a newspaper article dated 4/12/1983 announcing Febre's indictment on 59 counts of mail fraud and income tax invasion. http://img241.imageshack.us/img241/7158/febre1stindictment.gif
Febre's schemes included schemes to defraud involving mail-order promotions including: "get-rich-quick plans, how to get an auto without cost, earn $20k a year on other people's money, or live in an expensive house without money, according to the indictment."
The 59 counts included 4 counts of tax fraud for fraudulently reporting no income, and the creation of a bogus church with himself named as the minister in order to take advantage of the tax-exempt status of religious institutions. Febre even signed his tax returns: "Rev. Robert Febre". And just like any con-artist, Febre worked under a number of aliases and false identities. The indictment included six counts of using a false name.
Here is a link to newspaper article concerning his conviction: http://img69.imageshack.us/img69/5436/febre1stconviction.gif
In November of 1983, Robert Joseph Febre plead guilty to mail fraud and tax evasion and was sentenced to 22 months in prison and fined $100k. (PROVIDE LINK TO ARTICLE)
Febre lived in the Toledo, Ohio area and ran the schemes under the name of several businesses including: Transworld Publishing Co, Codex Inc, Stone Publishing Co., and Meredith Media.
FTC vs. ROBERT JOSEPH FEBRE
Unfortunately serving nearly 2 years in jail was not enough to get Febre to mend his ways. Febre moved from Ohio to Illinois and refined his methods of scamming unsuspecting victims. Nevertheless, his scams eventually caught the attention of the US Government and the FTC. In October of 1996, a federal court ordered that Febre and his new company, Pace Publishing, to pay $16 million in restitution to 200,000 victims. The details can be read here on the Federal Trade Commission's website:
http://www.ftc.gov/opa/1996/10/pase.shtm
The scams included more work at home business opportunities and programs that purported to offer grants, loans and credit cards to consumers. According to a Chicago Sun-Times article (found here): "Among those fleeced in the scams were victims of the severe flooding in the Midwest in 1993, who sent Febre money believing they were paying application fees for loans. Instead, they were sent books telling them where to apply for loans."
Link to the Chicago Times article http://img39.imageshack.us/img39/6026/febre2ndconviction.gif
According to FTC lawyer, Tim Hughes, The scam operated undetected for many years because Febre refunded money to anyone who complained to police or consumer agencies.
It is not surprising that Diamond Nexus Labs has taken the same approach and is willing to given refunds to any customers who submit complaints to the BBB, whether they bought their item 3 months ago or 3 years ago. As long as the victims who realized they have been conned into purchasing an ordinary CZ are silenced, they can continue scamming the unsuspecting new customers.
ROBERT JOSEPH FEBRE GOES BACK TO PRISON
As part of the FTC ruling (found on ftc.gov at the link above) Febre was prohibited from "making material misrepresentations about any work opportunity program or opportunities to obtain grants, loans, credit cards or other products or services". "The order would also require disclosure of any facts material to consumers' decisions to participate in or purchase their publications, products or services."
However like all serial con-artists, Febre just couldn't stop, and in May 2002, the US District Court in Northern Illinois sentenced 14 months in prison for criminal contempt for violating the final order in the FTV vs Robert Febre case. According to the project Scofflaw report found on the FTC website (link below): "In violation of the final order, Febre operated a new credit identity credit repair scam and deceptively offered a business opportunity scam that claimed consumers could make money by soliciting credit card applications. In addition Febre sold ten classic cars, including a Delorean, that were subject to a preliminary injunction asset freeze."
http://www.ftc.gov/opa/2003/08/scofflawreport.pdf
******************************************
GARY MEETS JOSEPH - DIAMONDNEXUSLABS.COM IS FOUNDED
Robert Joseph Febre was sentenced to 14 months in prison and was sent to Duluth prison camp. He was released in August 2003, just four months after Gary LaCourt finished his 18 month sentence, also at Duluth.
Here is a link to Federal Bureau of Prisons website where you can search for Febre and LaCourt http://www.bop.gov/iloc2/LocateInmate.jsp
Using the inmate locator number found via the link above, Duluth Penitentiary was contacted and confirmed that both inmates served time there.
This is most likely where Robert Joseph Febre met Gary LaCourt. Whether they cooked up the Diamond Nexus Labs scam here or after their release only they will know for sure. We can only speculate. But we do know that Robert Febre first registered DiamondNexusLabs.com in Jan 2005, just 2 months shy of LaCourt completing his two years of probation.
You may ask why would Robert Febre, the master con-man, would team up with Gary LaCourt, a failed businessman? Most likely because he needs a front man for his latest scheme: DiamondNexusLabs.com.
It comes as no surprise that Lautrec Corporation (the official name of Diamond Nexus Labs) is a corporation founded in Nevada despite no ties whatsoever with that state.
Why did they incorporate in Nevada? Because unlike other states, shareholders are not a matter of public record, and with the exception of an appointed Director (in this case, the front man, Gary LaCourt), the names of other officers in Nevada corp are protected and private. Nevada Corporate law also allows for "nominee" Director that stands in place of the "true" owner or controlling entity of the corporation (i.e. the true mastermind behind the DNL scam, Robert Joseph Febre).
Last but not least, unlike most other states, Nevada has no information sharing agreement with the IRS and does not provide personal or corporate financial records to the IRS. Given that both LaCourt and Febre are both convicted tax evaders, this would be very attractive to them. Not to mention that Febre still has unsatisfied judgments against him.
Below is the summary of a court judgment in the case of the State of Wisconsin vs. Ace Publishing. It appears that Febre still owes a $0.5 million to the people of Wisconsin.
http://img404.imageshack.us/img404/8281/febrewisconsinciviljudg.gif
And it is also worth mentioning that as of May 2007, Robert J Febre also has a $1.2 million dollar tax lien against all property belonging to him. Below is a link to a copy of the IRS tax lien:
http://img156.imageshack.us/img156/4807/febretaxlien.gif
******************************************
DNL THREATENS LAWSUIT TO SILENCE CRITICS
DiamondNexusLabs.com is now using the threat of lawsuits to bully this very website, diamond.info, and outspoken DNL critics to try and suppress the truth. I am happy to see that Diamond.info has not caved to the pressure.
Here is a link to the lawsuits: http://www.diamondnexuslabs.com/legal
If you have a moment to peruse the supposed lawsuits, you will find that they read more like a DNL marketing brochure than a legal document. If one googles Diamond Nexus Labs reviews, they will find that DNL is literally marketing these lawsuits to potential customers searching for reviews of its products. It is just more deceitful trickery. It is an attempt to confuse and suppress the truth.
If one would like to know the true properties of the DNL gemstone and proof that it is just an every day, run of the mill CZ, you can follow the link below to the read detailed analysis performed by Anderson Materials Evaluation, Inc.
http://betterthandiamond.com/diamondnexuslabs/DiamondNexusLabsMaterial.pdf
A blogger discusses and exposes more of Diamond Nexus Labs' ever changing fraudulent claims here: http://www.diamond.info/forum/index.php?showtopic=5248