Attorrney suing Genesis for fraud - True Story in Nashville Post
Owner Ramon says he did nothing wrong, yet he offered to give the full purchase price plus an additional $2000.00 back to the buyer in return for the ring.
January 12,2012
A well-known local jewelry retailer has been sued by an attorney for fraud, conversion and violation of the Tennessee Consumer Protection Act, all relating to a diamond engagement ring purchase last fall.
On Jan. 17, attorney Brian Manookian filed a complaint in Davidson County Circuit Court accusing Green Hills-based Genesis Diamonds, LLC, its owner Boaz Ramon and employee Kelley Todd, of fraud and violation of the state?s consumer protection act over Manookian?s September purchase of a $35,000 engagement ring. Not long after, Manookian discovered he paid too much for the ring and learned there was a $27,500 difference between the ring's true value and the value purported by Genesis. He sued.
Here?s what happened according to the complaint.
As Manookian considered buying an engagement ring for his soon-to-be-fianc?e, he couldn?t help but hear the many Genesis Diamonds radio commercials playing. Nor did he find it easy to ignore the positive ratings Genesis has received over the years from various media and other outlets.
So Manookian ? who in recent years also has tussled with the owners of the Tin Roof near Music Row ? went to Genesis and soon found the ring he wanted. Todd told Manookian the ring was worth $35,000 while the asking price was substantially less causing Manookian pause as he considered his options. Manookian was told that a certified third-party independent appraiser had valued the diamond and that the $35,000 value was legitimate. Eight days later, Manookian, despite feelings of apprehension, bought the ring for $16,000 ? an amount known only after contacting Ramon and not part of the filed complaint.
Manookian's reticence was partly justified when Ramon later told the attorney the third-party appraisal touted by Todd was not independent after all and was in reality an in-house Genesis appraiser. Manookian didn?t like that, of course, but continued to talk to Ramon about a resolution. According to the complaint, Ramon eventually agreed to have the ring evaluated by the Gemological Institute of America, a nonprofit entity charged with properly valuing diamonds and other gems. The diamond was then given to Ramon for delivery to GIA.
Manookian waited. For 45 days, after parting with the diamond, Manookian didn?t hear a word. Then, he received an email from an unknown jewelry appraiser, not GIA, which reaffirmed the diamond ring?s $35,000 value as maintained by Genesis.
Completely frustrated, Manookian sent the ring to GIA on his own dime. According to the complaint, GIA said the diamond was worth a mere $7,500. So, Manookian is suing for the difference between what Genesis said the diamond was worth, $35,000, and its true value of $7,500 ? a $27,500 gap. Manookian is also seeking treble damages award from the circuit court, and if granted Genesis would owe Manookian $82,500.
Ramon told Nashville Post he had tried to resolve the matter with Manookian without court involvement and said he would refund Manookian the $16,000 purchase price and would add an incentive to the deal.
?If he?ll bring the ring back, I will reimburse the exact amount he paid for the ring which is $16,000 and I?ll add an additional $2,000 for good measure,? Ramon said.
If Manookian?s assertion is true, that the ring is correctly valued at $7,500, then he?s theoretically out $8,500, the difference between the amount he paid for the ring and the $7,500 appraisal. But, Manookian isn?t seeking that reimbursement. Instead, he?s asking the court to award him the difference between what store employee Todd had told him the ring was worth, $35,000, and Manookian?s most recent $7,500 appraisal ? a $27,500 difference.
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