Judge Bars Company From Misrepresenting Jewel Values

A federal judge has ordered a Santa Ana-based gem appraiser from misrepresenting jewel prices as part of an ongoing investigation by the Federal Trade Commission, an FTC attorney said Tuesday.

The FTC has accused Gem Sciences International and its owner, Sarabeth Koethe, of issuing certificates of appraisal that grossly overvalued gems sold in what authorities called a telemarketing scheme.

FTC attorney Jessica Rich said from her Washington office that Gem Sciences was part of a nationwide scam in which salespeople allegedly lied to customers, selling them semiprecious stones that were worth as little as 1/30th the price paid for them.

The salespeople worked for International Assets Trading Co. in Studio City. Federal authorities have charged that Gem Sciences provided bogus appraisals that bolstered the salespeople’s claims.

The alleged scheme reportedly netted the trading company $3.9 million.

A federal judge in Los Angeles in June issued a temporary injunction against International Assets and has frozen its accounts, Rich said. A temporary injunction barring Gem Sciences from misrepresenting the value of gemstones was issued on Aug. 18, she said.

Also named in the alleged scheme were International Assets owners Garry Schaeffer and Thomas Lopes.