How Would You Solve ‘The Case of the Trusted Larcenist’?

DIAMOND GALLERY WAS A cherished local jewelry store where families celebrated milestones, couples found the perfect engagement rings, and treasures were passed down through generations. This deep-rooted community trust made preserving the store’s integrity a top priority. To uphold this legacy, second-generation owner Mark implemented a meticulous system of checks and balances to ensure everything ran smoothly … or so he believed.

Mark’s staff conducted careful case counts for high-dollar cases like bridal jewelry, luxury watches, and loose diamonds every morning and evening. Loose diamonds were also subjected to detailed weekly inventory checks. However, cases holding inventory priced below $1,000 weren’t checked daily to avoid overburdening the team, a routine that had worked for years.

The estate jewelry case was often overlooked. It was a modest collection of vintage and pre-owned pieces acquired through gold-buying events or customer trade-ins. With price tags generally under $1,000, it didn’t receive the same scrutiny as the bridal and timepiece displays. While the case contributed modestly to overall sales, its unique charm attracted a loyal clientele.

Unbeknownst to the store’s team, the estate case became attractive to a far less welcome admirer: Robert, a full-time appraiser specializing in vintage jewelry. Trusted for his expertise, Robert had been a familiar face at Diamond Gallery for years. The store hired him as an onsite appraiser because of his deep understanding of estate pieces, their fluctuating market values, and the types of items that appealed to his ever-growing network of buyers.

The thefts started small. First, a pair of vintage cufflinks with pavé diamonds disappeared. When no one noticed, Robert removed a gold bracelet. He then habitually took one piece from the estate case each week. With daily attention focused on the high-value cases, the estate jewelry case became the perfect cover for Robert. To avoid detection, items were occasionally swapped from other low-value cases or marked as “damaged,” and the display was carefully rearranged with low-value pieces to mask
the missing items.

It seemed like the perfect crime until a frequent customer, Lindsay, arrived at the store intending to purchase a vintage brooch she had noticed in the case during a recent visit. When she couldn’t find it in the case, she asked the store’s manager, Christina, if the piece had sold.

Christina began investigating and quickly noticed discrepancies. Looking through the POS system, it indicated the brooch should still be in the estate case, but it was no longer in the display. She looked in the understock and nearby cases to see if it was simply misplaced. When she couldn’t find it, she immediately alerted the store’s owner, Mark, who launched a deeper investigation.

Mark reviewed the inventory records, double-checked the estate case, and performed a meticulous search throughout the store. He confirmed the brooch was missing. A closer look at the estate case’s inventory report revealed other anomalies: Pieces marked as “on hand” were no longer physically present in the showcase.

This discovery prompted Mark to examine security footage from the past several weeks, focusing on the estate case. The footage revealed Robert’s frequent unnecessary visits to the case. He was often seen rearranging items without a clear reason, lingering longer than necessary.

The final piece of evidence came when Mark conducted an unannounced inspection of Robert’s workstation. Inside Robert’s bag, Mark found a few of the missing items from the inventory report.

The realization hit hard. This wasn’t an isolated incident. What had started as small thefts escalated into a systematic breach of trust. Mark, Christina, and the
rest of the team felt a deep sense of loss — not just for the stolen pieces but for the camaraderie and trust they once shared.

Cody C.
Dayton, OH

Everything on the sales floor should be counted at a minimum once per week. Our store counts three times per week to ensure there are no disappearances or discrepancies from our cases. Doing this simple task mitigates risk of loss. If you are not doing counts, start ASAP.

Erin H.
Lancaster, PA

Why does Robert need access to that case if he’s not a salesperson? He doesn’t. Lock it up. Lock it all up. Explain what’s up to employees. They will be bummed and maybe mad. As they should be! And Robert? He’s fired and banned. He can give it all back and make restitution. Pronto. Or you can call the cops. Sounds like Robert has got an easy decision to me!

Drue S.
Albany, NY

In my almost 50 years of experience, if a staff member is caught red-handed, you must make an example of never allowing that to happen by calling the police and having him arrested. This has happened to me a few times. After the arrest, I had many meetings assuring the rest of the staff that I trusted and believed in their dedication to the business. It’s a betrayal not only to the owners but to the people he worked with daily.

Peter T.
Show Low, AZ

It isn’t possible to stop a dedicated thief. At some point, you need to trust your employees, do appropriate counts and regular inventory counts. If a thief is caught, it is important to get the police involved and have the thief arrested. It won’t be easy (emotionally), but it is very important for moral, personal closure and to help keep other jewelers from hiring this thief.

Phyllis P.
Houston, TX

You should designate one person to handle all inventory and have them do case checks each week. Maybe two or three cases each week, depending on how many cases you have. That way, you can catch missing or misplaced items much quicker.

Mike B.
Duluth, GA

As a contractor, Robert should have never had access to the jewelry cases as there is no need for him to be in a case. As far as what to do with Robert, the police should be called and he should be arrested and prosecuted. Doing this will serve as an example and will not hurt morale as dedicated, honest employees will celebrate this violation of trust.

Jim S.
Grand Rapids, MI

This is something most businesses get wrong. More checks and balances are what lawyers and accountants want you to do, and that only adds expenses. You just need to build a culture of trust among your staff, customers and vendors. You should look at every situation and try to build trust and not build suspicion. You could assign every staff member a case that they were responsible for and maybe switch off a couple of times a year. I guarantee you the dollars and time saved on these situations will be greater than your losses, and when they occasionally aren’t, that is what insurance is for.

David G.
Atlanta, GA

This happened to me as well as to a jeweler I helped with QuickBooks. We brought in five great rings for memo, retail $12,000 to $25,000, all centered in one showcase. A rich customer we loved wanted to work part time, so we said yes. In January, the vendor came in to get paid or get them back. One was missing. None of the other four sales staff saw it missing. I was ready to pay when he said, “Did you check pawn shops?” I had a suspicion, so I called a pawn shop and asked, “Did a woman named ‘x’ sell you a blue sapphire ring?” “Yes! We bought a lot of stuff from her.” I called the police and had her arrested; she paid full retail to not have charges brought against her (she had 4 kids). A store I helped with accounting had a sister as partner; she was the bookkeeper. She skimmed cash, never deposited it and went into the POS and scrapped a bunch of jewelry for personal use. She stole $150,000. The owner couldn’t fire a partner, so he got a loan and bought her out. I later helped the same store and trained the new bookkeeper.

One day she came in late. The owner looked under her desk and found an envelope with $15,000 in cash. He called me and asked, “What do you think?” Obvious, she’s stealing. I got into his computer and bank statements. In QuickBooks, she showed deposits of cash but never took it to the bank; she stole it. Seems QuickBooks showed “$65,000” as a balance but the bank website showed a real balance of $15,000. She had paid for her own wedding four months prior at a cost of $40,000, the amount of cash missing. She was fired and the case given to the police. Lesson? Owner should reconcile the bank account. If he had, he would have seen it immediately.