• Georgia man gets nearly 8 years in diamond fraud case

    ATLANTA (AP) - A Georgia man has been sentenced to nearly eight years in prison for trying to defraud dealers of nearly $1.2 million in diamonds and other jewelry.

    U.S. Attorney Byung J. Pak, in a news release Tuesday, said 32-year-old Cory Smith, of Atlanta, was sentenced to seven years and eight months in prison after pleading guilty to interstate transportation of stolen property. He also was ordered to pay more than $567,000 in restitution.

    Prosecutors say Smith took advantage of the jewelry industry's use of "memo financing," a type of consignment arrangement where dealers borrow diamonds from a supplier and pay for them after selling them.

    Smith would order merchandise and have it shipped to a jewelry store in Georgia. But after getting tracking information, he would have the packages rerouted.

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