Adrian Humphreys
A Toronto entrepreneur, James Gagliardini, has been sentenced to 56 months in a U.S. prison for orchestrating a diamond investment scam that swindled over $21 million from approximately 200 victims, many of whom were elderly individuals targeted through phone calls.
Gagliardini founded his company, Paragon International Wealth Management Inc., in 2013, where he and his team deceived unsuspecting investors into believing they were purchasing valuable coloured diamonds. They manipulated potential returns, claiming profits were just around the corner, but continually demanded more money from investors, often for diamonds that did not exist.
Operating from a telemarketing center in Toronto, Gagliardini’s fraudulent activities went unchecked until a police raid in 2018. He was subsequently extradited to Ohio for prosecution, as more victims were found to be American.
During the court proceedings, the impact on victims was highlighted, with one 79-year-old victim stating, “I charged a large amount of money on my credit card to purchase diamonds… I never received any diamonds, just excuses.” Prosecutors documented a loss of nearly $15.7 million attributable to Gagliardini’s scheme.
Despite pleading guilty to conspiracy to commit wire fraud, Gagliardini’s defense attorney argued that his actions were out of character, citing letters from supporters attesting to his good nature. However, U.S. District Judge J. Philip Calabrese imposed the sentence, emphasizing the need for accountability.
Gagliardini has been allowed to leave court under electronic monitoring and will surrender to prison once designated. The court has ordered him to pay restitution, though the likelihood of full repayment remains uncertain.