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Sotheby’s may be responsible for $4 million in lost diamonds. She allegedly gave them to a “stranger”. This month, the Court of Appeal ruled on the matter.
The lawsuit was filed by M&L Financial, which claims it handed over the diamonds to Sotheby’s for evaluation in April 2019. A few months later, M&L claimed that Sotheby’s gave the diamonds to a company representative, who pledged the stones to M&L as collateral for a loan. Since then they have been according to the server CNN lost diamonds
The diamond was the property of Jadelle Jewelry and Diamonds of Beverly Hills, owned by Jona Rechnitz, a political philanthropist known in celebrity circles in New York and Hollywood. Jadelle has worn many celebrities including Kim Kardashian, who has often been photographed wearing her jewelry. Rechnitz allegedly gave the stones to M&L because he had a “big debt” with them.
While the diamonds were in Sotheby’s possession, someone posed as an agent for Jadelle’s jewelry and picked out the jewelry from Sotheby’s. This was after Rechnitz alerted the auctioneer that a gem dealer would be coming.
The case has been going on since 2020, when M&L sued the auction house. She claimed that the gemstones should not be released to Jadelle Jewelry’s agent.
According to the ruling, everything depends on the wording of the contract. However, the US Court of Appeals noted the “fine print” on the back of the document, which stated that “M&L transferred the diamond to Sotheby’s and held it for evaluation in anticipation of a consignment sale.”
However, the contract did not mention any agreement to sell the gems to M&L by auction, although it was the purpose of Sotheby’s involvement in the whole case. However, the auction house violated the agreement by handing over the diamonds to a stranger.
A Sotheby’s spokesperson disputed the allegation, telling CNN Business: “The person who took possession of the property was an authorized representative of Jadelle Jewelry. Senders regularly require Sotheby’s to issue a proxy and in this case the agent provided the necessary identification as required upon collection.”
Sotheby’s said in a statement that it considered the complaint unfounded and riddled with lies and distortions. “We will continue to vigorously defend ourselves in court,” the auction house said.
CNN Business cannot be reached for comment from other actors. Jadelle Jewelry’s phone number has been cut off and her website no longer exists. Rechnitz can’t be reached, and M&L can’t be reached.
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