Serious Fraud Office was warned about diamond scam but decided not to act

The Serious Fraud Office (SFO) faced criticism for failing to investigate a £170m diamond scam involving Vashi jewellery despite a whistleblower's report. Vashi's collapse left investors in debt as diamonds supposedly worth £157m sold for just £158,000. Former chief technology officer, John Ames, raised concerns with the SFO in May 2022 about Vashi falsifying accounts and defrauding investors, but the SFO did not take action. The scandal unfolded as investors lost significant sums, prompting investigations by other agencies like the Insolvency Service.