Murray Todd Petersen, Diamond Investment Fraud, Florida 2024

A California man has been convicted of a diamond investment fraud scheme that victimized investors in Florida, according to court documents.

Murray Todd Petersen, 73, of Fair Oaks, California, was convicted of conspiracy to commit wire fraud and wire fraud, after a seven-day jury trial in Fort Lauderdale, Florida.

From March 2013 through August 2019, Petersen, who worked as a salesman for Petersen & Lowe LLC, induced investors to purchase fancy-colored diamonds using materially false and fraudulent representations concerning the safety and security of the investments, the value of the investments, the expected profits and rates of return, and the use of investors’ funds.

Petersen took approximately $850,000 in sales commissions from his victims, which he used to pay off his high IRS tax liens and cover his business operating expenses.

After selling his victims expensive fancy-colored diamonds supplied with fraudulent overvalued appraisals, he instructed his clients to hold onto their investments often for one to two years prior to looking to liquidate. When trying to cover his investors cash out demands at the overpriced appraisal prices, he used another false representation of a China investment program, where he would purportedly invest the victims’ money into the Chinese diamond market with a purported guaranteed five to eight percent monthly dividend return on investment.

Unbeknownst to his victims, this new investment program was really a Ponzi scheme in disguise designed to pay off his first round of investor clients. When customers began to complain about missing promised returns and highly inaccurate overvalued appraisals, the scheme pivoted again to a theft model, where investors prepaid for diamonds that were never delivered.

Petersen was remanded into custody after his conviction and is set to appear in court on April 24 at 10:00 a.m. for sentencing. He faces up to 20 years in prison on each count.

Petersen’s co-conspirators Adam Jonathan Lowe, 43, of West Pittston, Pennsylvania, and Scott Schafer, 62, of Pembroke Pines, Florida, were previously convicted in connection with the scheme.

Source: https://www.justice.gov/usao-sdfl/pr/jury-convicts-california-man-diamond-investment-fraud-scheme