{"id":11166,"date":"2015-04-15T21:39:54","date_gmt":"2015-04-16T04:39:54","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=11166"},"modified":"2015-04-15T21:44:32","modified_gmt":"2015-04-16T04:44:32","slug":"jeweler-who-pawned-jewelry-to-collect-millions-in-insurance-money-sentenced","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=11166","title":{"rendered":"Jeweler Pawned Jewelry He Reported Stolen to Insurance Company"},"content":{"rendered":"

BIRMINGHAM<\/strong>\u2014A federal judge Wednesday sentenced a Vestavia Hills man to three years and nine months in prison for laundering money by pawning a 3-carat diamond, officials said.<\/p>\n

The diamond was among a cache of jewels he collected a $2.6 million insurance payment on in 2004 after reporting them stolen in a Mountain Brook Jewelry<\/strong> store robbery, according to federal officials.<\/p>\n

The jeweler also plead guilty to possession of firearms.<\/p>\n

\"Joseph<\/a>
Joseph Harold Gandy<\/figcaption><\/figure>\n

U.S. District Judge Karon O. Bowdre<\/strong> sentenced Joseph Harold Gandy,<\/strong> 65, after Gandy plead guilty. The judge ordered that Gandy pay $20,000 as restitution to the jewelers where he pawned the diamonds.<\/p>\n

Also Gandy must give back all the diamonds and jewelry the FBI recovered from him, which includes a rare Blue Diamond worth at least $620,000, according to authorities.<\/p>\n

The Blue Diamond was among about $1.5 million worth of diamonds and jewelry that Gandy falsely reported stolen in 2004. In 2013, Gandy sent a friend to pawn some of those diamonds he had reported stolen.<\/p>\n

In October, the U.S. Attorney\u2019s Office charged Gandy with one count of money laundering for pawning property worth more than $10,000.<\/p>\n

Prosecutors also charged Gandy with one count of being a convicted felon in possession of firearms for 99 weapons seized in a search of his Vestavia Hills home in November 2013.<\/p>\n

Gandy is prohibited from possessing weapons because of a 1989 federal mail fraud conviction. Gandy pleaded guilty to both federal counts in November.<\/p>\n

Vestavia Hills Police seized the 99 weapons at Gandy\u2019s house.<\/p>\n

The state is prosecuting him on weapons charges and on drug charges based on prescription drugs also seized at his residence in the November search. A state court hearing is scheduled later this month.<\/p>\n

According to court documents, this is the evidence against Gandy:<\/strong><\/p>\n

    \n
  • Gandy was an owner and the operator of Denman-Crosby Jewelry Store in Mountain Brook in 2004.<\/li>\n
  • In December of that year, he reported that two unidentified men robbed the store at gunpoint.<\/li>\n
  • At the time, Denman-Crosby was promoting a loose diamond sale for Christmas.<\/li>\n
  • It had many diamonds and other jewelry in on consignment from jewelers in New York and elsewhere.<\/li>\n
  • The store carried a $2.6 million insurance policy. Gandy had increased the coverage amount with XL Specialty Insurance Company a few weeks before the robbery.<\/li>\n
  • In January and March of 2005, Gandy used interstate wire transmissions to submit insurance claims from the robbery. He included a detailed inventory of jewelry worth about $2.8 million that he reported stolen.<\/li>\n
  • XL Specialty paid the policy\u2019s limit of $2.6 million.<\/li>\n
  • In July 2013, Gandy began sending a friend to jewelry stores in Jefferson County to pawn diamonds he had reported stolen in 2004.<\/li>\n
  • The first effort ended when the jeweler requested documentation on a 1.59-carat diamond, mounted in a platinum setting, and attempted to examine the stone closely.<\/li>\n
  • The concern was that the diamond might bear a laser inscription useful in tracing its history. Subsequently, Gandy examined 10 to 12 diamonds under a microscope and selected stones that bore no inscription.<\/li>\n
  • On July 26, 2013, Gandy sent his friend to a Birmingham jewelry store to pawn a 3.01-carat emerald-cut diamond he said was worth about $43,000.<\/li>\n
  • Gandy said he wanted at least $15,000 for the stone. The store accepted the diamond in exchange for a $12,000 loan.<\/li>\n
  • The diamond was one Gandy reported stolen in the Denman-Crosby robbery. He gave his friend $2,000 for making the transaction.<\/li>\n
  • Between August and November of 2013, Gandy\u2019s friend pawned two more diamonds: a 3.45-carat cushion-cut diamond for $8,000; and a 2.16-carat round diamond for $2,000.<\/li>\n
  • Both stones were on the stolen inventory list Gandy provided the insurance company in 2005. Gandy gave his friend $1,880 after receiving the $8,000 for the 3.45-carat diamond.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

    BIRMINGHAM\u2014A federal judge Wednesday sentenced a Vestavia Hills man to three years and nine months in prison for laundering money by pawning a 3-carat diamond, officials said. 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