Celebrity jeweler hit with new charge in $12M diamond caper
Detroit — A celebrity jeweler famous for auctioning the engagement ring President Donald Trump gave to ex-wife Marla Maples is expected to plead guilty to orchestrating a $12 million diamond caper after prosecutors filed a new wire fraud charge Tuesday.
A plea would resolve a criminal case against Joseph DuMouchelle, 58, owner of DuMouchelle Fine & Estate Jewelers in Birmingham, that involves millionaires, phony documents, blue bloods and "The Yellow Rose," a rare 77-carat diamond.
DuMouchelle, a scion of the influential family that founded DuMouchelle Art Galleries in Detroit, was first charged with a crime in November. On Tuesday, prosecutors filed a criminal information against the jeweler charging him with wire fraud. A criminal information is a type of filing that means a guilty plea is expected.
The fraud charge is punishable by up to 20 years in federal prison. His lawyer, Jonathan Epstein, could not be immediately reached Tuesday for comment.
The Yellow Rose diamond is portrayed in a federal criminal complaint as a means for DuMouchelle to escape mounting financial problems, including money owed to a North Dakota businessman.
Early last year, DuMouchelle devised a scheme to obtain money through a scheme involving fraudulent pretenses, prosecutors said.
At the time, the jeweler owed $430,000 to North Dakota businessman Thomas Ritter, according to a criminal complaint filed last year.
DuMouchelle pitched a deal that entailed buying the diamond from a Texas family, selling at a profit and splitting the money, according to a Federal Bureau of Investigation affidavit filed in federal court last year.
The emerald-cut gem, set in platinum with more than five carats of yellow and white baguette diamonds, would cost $12 million but could be sold for $16 million, DuMouchelle said, according to the court filing.
DuMouchelle falsified documents and emails to make it look like the $12 million from Ritter would be wired to the Yellow Rose seller, according to the criminal information.
"In fact, the wire transfer directions Dumouchelle sent (Ritter) were for Dumouchelle’s Bank of America account ... and at that time there was no actual buyer for the Yellow Rose," prosecutors wrote.
At the time, DuMouchelle's bank account held a mere $500.
Ritter wired the money Feb. 6, 2019, and DuMouchelle sent a phony receipt, according to the criminal information.
"Immediately after the deposit and with intent to obtain money by means of false and fraudulent material promises and representations Dumouchelle withdrew the majority of the money and used it to pay his personal and business debts and expenses," prosecutors wrote.
The alleged crime unfolded while DuMouchelle underwent financial problems.
DuMouchelle and his wife filed Chapter 11 bankruptcy on Oct. 11, listing almost $2.3 million in assets and $23.4 million in liabilities.
His property included a 2018 Dodge Challenger Demon worth $125,000.
The car, however, disappeared Oct. 6, five days before DuMouchelle filed bankruptcy, according to court records. The Demon was "stolen in St. Clair Shores in Fishbones parking lot," according to bankruptcy records.
DuMouchelle has drawn headlines in recent years for different reasons.
Four years ago, DuMouchelle sold the 7.45-carat diamond engagement ring Trump gave to his second wife, Maples, an actress and TV personality.
The giant rock sold for $300,000 to an anonymous bidder at an auction at New York City's Lotte Palace Hotel.
The ring was originally sold in 2000 for $110,000 following the couple's divorce in 1999. Maples had DuMouchelle handle the first auction.
The American couple who bought the ring before asked the same auctioneer, DuMouchelle, to sell it.
DuMouchelle, son of the late famed auctioneer Lawrence DuMouchelle, has a roster of celebrity clients that once included Aretha Franklin. According to his website, DuMouchelle has sold notable pieces, including a silver necklace once worn by the actress Elizabeth Taylor in the film "Young Toscanini."