When visitors stepped into Vashi’s glittering jewelry stores in London’s Covent Garden or Birmingham’s shopping district, they thought they were entering the future of diamond retail. Staff appeared to be goldsmiths hunched over benches, customers seemed engaged in purchases, and sleek screens projected an image of innovation.
But behind the polished facade lay a deception. Former employees now say they were instructed to act as customers to convince investors that the stores were bustling. Sales staff with no jewelry-making experience were asked to pretend to be artisans at work. Even diamonds were tampered with—scratched inscriptions, swapped stones, and misleading valuations—creating the impression of wealth and activity that simply did not exist.
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The operation was directed by Vashi Dominguez, a diamond dealer once hailed as a pioneer of bespoke retail, who disappeared after the collapse of his empire in April 2023, leaving £170 million in debts and investors facing ruin.
The Rise of a Charismatic Dealer
Dominguez’s ascent had all the hallmarks of a modern luxury success story. From his early days supplying diamonds to the wealthy, he cultivated a reputation as a visionary. He appeared on British daytime television, showing off a crystal egg he claimed was worth £5 million, and presented himself as a disruptor offering “a different kind of jewelry experience.”
By 2017, his Vashi brand had expanded into prime high street locations. Investors, including prominent entrepreneurs and media executives, poured millions into the company. Among them were Clive Schlee, the former chief of Pret a Manger, and John Caudwell, the billionaire who founded Phones 4u. They were shown accounts reflecting sales of more than £100 million in 2021 and valuations claiming that the company’s stock of diamonds was worth £157 million.
In reality, internal records later revealed sales closer to £5 million—a fraction of what investors had been led to believe.
A Business Built on Fabricated Success
To keep the illusion alive, Dominguez relied on more than charismatic pitches. Internal emails instructed staff to play customers when investors visited, ensuring the stores looked busy. Diamonds of lower value were substituted for higher-quality ones, and inscriptions certifying their quality were removed. Behind the scenes, accountants signed off inflated figures that reassured financiers their money was safe.
Even as the business faltered, Dominguez maintained the trappings of success. The company covered the costs of his luxury cars, including a Lamborghini, and high-rent flats in Mayfair. In 2021, a flagship Covent Garden store was fitted out with expensive furniture and interactive displays—a stage set to reinforce the story investors wanted to believe.
“The whole thing was a facade,” said one former employee. “It looked like growth, but it was smoke and mirrors.”
Collapse Without Accountability
When the company collapsed in April 2023, investors expected the promised £157 million diamond stock to offer some recovery. Instead, independent valuations put the real figure closer to £100,000.
Yet despite the scale of the losses, both the Metropolitan Police and the UK’s Serious Fraud Office have declined to investigate. That decision has baffled those left behind, many of whom compare the scandal to Britain’s most infamous robberies. “This is bigger than Hatton Garden, Brink’s-Mat, and the Great Train Robbery combined,” said advertising executive and investor Michael Moszynski.
The wreckage of Vashi’s empire now lies in administrators’ hands, while its founder has vanished from view. Investors continue to press for answers, but for now the UK’s largest diamond fraud remains a story of wealth conjured from illusion—and accountability deferred.