largest seller of loose gemstones Jewelry TV is suing famed insurer Lloyds of London due to a jewelry theft scheme which cost the company millions

Satellite dish customers and some cable recipients are familiar with Jewelry Television, a popular 24 hour marketing station selling gemstones, bridal rings, jewelry making, and related gift items. Headquartered in Knoxville, TN, the company manufactures many of the items that they sell at facilities located in Asia.
As the largest seller of loose gemstones in the world, Jewelry Television is also one of the largest jewelry retailers, period. But, the company has been having some problems lately as reported by the Rapaport News. Specifically, Jewelry TV is suing famed insurer Lloyds of London due to a jewelry theft scheme which cost the company millions of dollars in lost inventory.Apparently, an unemployed social worker managed to gain access to the City of New York’s Office of the Comptroller Department account, whereby he placed unauthorized orders from Jewelry TV with the department’s funds. When the fraud was finally uncovered, merchant services company Paymentech — a division of JP Morgan Chase — processed $1.41 million in returns which were never shipped to Jewelry TV. Moreover, Paymentech seized $1.48 million in funds from the jeweler’s account.A loophole in Lloyd’s of London’s coverage is leaving Jewelry TV in the lurch, forcing the company to sue Lloyd’s to recover their losses. Jewelry TV is also seeking compensation to cover attorney expenses and plans to file suit against Paymentech and JP Morgan to recover the rest of their losses.
The news wires reported the arrest of Tracy Ball in April 2007 who was later convicted in January and sentenced to at least four years in prison. The Office of the Comptroller still hasn’t explained how Ball managed to make more than 600 transactions in a thirteen month period before getting caught.