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Five men arrested in ongoing coloured diamond investment investigation,
Face total of 31 charges,
Seven people allegedly lost $1.7 million



Broadcast time: 12:14
Friday, June 1, 2018

Financial Crimes
416-808-7300

Case #: 2018-995532


The Toronto Police Service would like to make the public aware of arrests in an ongoing coloured diamond investment investigation.

It is alleged that:

- between October 2013 and March 2018, numerous victims were contacted by representatives from a company known as Paragon International Wealth Management Inc.

- victims were given false information about buyers for their coloured diamonds and/or jewelry

- victims were given false information regarding the value of their coloured diamonds and/or jewelry

- documents provided to victims were misleading as they did not accurately depict coloured diamonds and/or jewelry received by victims

- five Americans and two Canadians lost approximately $1.7 million

On Wednesday, May 30, 2018, Antonio Palazzolo, 60, of Pickering, was arrested. He is charged with:

1) seven counts of Fraud Over $5000


Ronald Kleinberg, 72, of Toronto, was also arrested. He is charged with:

1) two counts of Fraud Over $5000

Both men were scheduled to appear in court at Old City Hall on Wednesday, May 30, 2018, 2 p.m., room 101.


On Thursday, May 31, 2018, Michael Shumak, 48, of Markham, was arrested. He is charged with:

1) eight counts of Fraud Over $5000


James Gagliardini, 40, of Toronto, was also arrested. He is charged with:

1) eight counts of Fraud Over $5000


Edward Rosenberg, 53, of Richmond Hill, was also arrested. He is charged with:

1) six counts of Fraud Over $5000


It is further alleged that:

- the five men used the following aliases while representing Paragon International Wealth Management Inc.:

1) Michael King
2) John Moore
3) Edward Rose
4) John Carson
5) Ronald Sterling

The five men are scheduled to appear in court at Old City Hall, on Wednesday, July 11, 2018, 9 a.m., room 111.

Police are warning the public about people or companies who contact them for the purpose of making quick, risky investments of any kind.

Anyone with information is asked to contact police at 416-808-7300, Crime Stoppers anonymously at 416-222-TIPS (8477), online at www.222tips.com, or text TOR and your message to CRIMES (274637). Download the free Crime Stoppers Mobile App on iTunes, Google Play or Blackberry App World.


For more news, visit TPSnews.ca.



Katrina Arrogante, Corporate Communications, for Detective Constable Kevin Williams, Financial Crimes