In a scandal that has rocked the UK’s luxury retail sector, diamond dealer Vashi Dominguez stands accused of orchestrating what many are calling the biggest diamond scam in British history. The collapse of his eponymous jewellery business in April 2023 left a trail of devastation: £170 million in debts, scores of high-profile investors out of pocket, and a fugitive boss who vanished the day the company went under. Despite the scale and audacity of the fraud, both the Metropolitan Police and the Serious Fraud Office (SFO) have declined to investigate, leaving investors and former staff alike reeling and demanding answers.
The story, as uncovered by BBC Panorama, is a tale of deception, sparkle, and ultimately, ruin. At its heart was Dominguez himself—a charismatic figure who built his reputation supplying diamonds to the rich and famous, and who later transformed his name into a high-street brand. By 2017, Vashi stores could be found in London, Birmingham, and Manchester, offering customers a supposedly unique experience: the chance to work with designers and watch their bespoke jewellery being crafted on-site. The promise? High-end diamonds at a more accessible price.
But behind the glamour, the reality was far grimmer. According to BBC Panorama, Dominguez instructed his staff to pose as customers whenever investors visited, creating the illusion of bustling, successful shops. "This request is direct from Vashi, as he is in major investor conversations and expects surprise store visits," read one internal email. Will Hayward, a former store manager, described the charade: "It was a whole elaborate show that Vashi would do with the clients, to show that they've got so many orders and this is how busy we are—this is why you should really be investing into Vashi. Total facade."
Sales staff with no jewellery-making experience were told to sit at workbenches and pretend to be goldsmiths or diamond-setters. The ruse was designed to impress would-be investors and convince them that the business was thriving. Yet, as Charlotte Paul, a former data analyst for Vashi, told BBC Panorama, the Covent Garden flagship store—fitted out extravagantly with a large interactive screen and an £8,000 sofa—was often eerily quiet: "After the shininess had worn off, we were getting, like, two, three, four people in it a day, and that was the reality in one of the busiest squares in London."
The deception extended beyond appearances. Investors were lured in with detailed business plans and impressive financial accounts. The company reported sales of over £100 million in 2021; in reality, internal documents show the true figure was closer to £5 million—just five percent of what was claimed. Stuart McFadden, from the fraud investigation firm Refundee, told the BBC, "To completely misrepresent the accounts by this scale is just completely unacceptable."
High-profile investors, including Clive Schlee (former boss of Pret a Manger), billionaire John Caudwell (founder of Phones4u), and Mark Schneider (media executive and GB News co-founder), were among those deceived. Schneider, who invested around £750,000, said, "It seemed good. Some smart guys from around here were in the deal, I just kind of went along with it on that basis." Michael Moszynski, another investor, compared the scale of the scam to some of Britain’s most notorious heists, saying, "This is bigger than Hatton Garden, Brink's-Mat and the Great Train Robbery combined."
In February 2023, just two months before the collapse, investors were reassured by valuations showing the company’s diamond stock was worth a staggering £157 million. But when the dust settled, the true value was closer to £100,000—a catastrophic shortfall. Diamond consultant Rob Wake-Walker, brought in to value the gems, recalled, "Our first question was actually to ask if there was any more." The answer, it turned out, was no.
The company’s accounts had been signed off by Rajnikant Patel, an accountant based in Ilford, east London. When confronted by the BBC, Patel expressed regret: "Obviously it’s not good. The shareholders, the investors have lost their money. I certainly am very sorry that’s happened, but nothing to do with us." He insisted he was unaware the figures were incorrect and would not have signed off had he known.
Meanwhile, customers were also being deceived. Lezlie Bailey, a former gemologist at Vashi, alleged that the company was buying smaller or lower-quality diamonds than customers had paid for, and even scratching off the GIA numbers—unique inscriptions that record a diamond’s size and quality. This, according to the Daily Mail, meant customers often received less than what they paid for, compounding the sense of betrayal.
As the business teetered on the brink, Dominguez maintained a lavish lifestyle—his company paid for luxury cars, including a Lamborghini, and rented several upscale flats in Mayfair. But when the end came in April 2023, he disappeared without a trace. According to liquidator Benji Dymant, bank records show that Dominguez flew to Dubai on the very day the court ordered his company to be wound up. Dymant told the BBC, "We have hired private investigators and there have been sightings of him, but we have not been given any hard evidence of a sort of residence or location in a certain place."
Despite the massive losses—over £100 million owed to investors and a total creditor bill of £170 million—there has been no criminal investigation. The SFO explained it only "takes on a small number of high-level economic crime cases" each year, while the Metropolitan Police stated it had "not received any referrals from the liquidator or the Insolvency Service" and would reassess if it did. The liquidator, for his part, says he has complied with all legal requirements but is not allowed to confirm if referrals were made.
For investors like Mark Schneider, the lack of official action is bewildering. "All these people in your country can be ripped off in such an obvious way and you don't bother trying to figure out how to get hold of the person or to deal with the fraud," he said. Many are left wondering whether Dominguez panicked as his business faltered or whether the scam was planned from the start. What’s clear is that the sparkle and glamour that drew in millions has left nothing but loss and unanswered questions in its wake.
As of September 2025, Vashi Dominguez remains at large, and the fate of the missing millions—and those who lost them—remains unresolved.
