SINGAPORE, Nov 22 — A three-year legal battle involving a Singaporean and a fraudulent multimillion-dollar diamond investment has come to light after the country’s Court of Appeal rejected his bid to keep court records sealed.

According to The Straits Times, the arbitration case revealed Karan Chandur Tilani, 32, defrauded Dutch investor Maarten Hein Bernard Koedijk by making false claims about a 2.08-carat "fancy vivid blue” diamond ring, dubbed the "Jane Seymour diamond.”

Justice Lai Siu Chiu found the diamond was synthetic, worth only US$19,136 (RM85,600), and not the US$10 million Tilani had claimed.

Court documents disclosed that Koedijk entered into investment agreements with Tilani, influenced by fraudulent assertions that the ring was a rare, naturally mined gem.

Koedijk invested S$648,601 in cash and cryptocurrency valued at S$2 million, believing he was purchasing nearly half of Fantastic Xperience (FXPL), a company linked to the diamond deal.

However, Koedijk alleged the arrangement was a fractional ownership investment in the ring, promising shared sale proceeds. Tilani denied these claims and initiated arbitration in 2021, accusing Koedijk of owing him S$339,659.

The Straits Times reported that Justice Lai dismissed Tilani’s claims, declaring the investment scheme fraudulent and ordering him to pay Koedijk S$2.38 million in damages.

She also declared the sale and purchase agreement void, requiring Tilani to refund S$648,601 and transfer the FXPL shares back to him.

Promotional materials used to lure investors included a Forbes article falsely describing the diamond as a natural gem.

The report also said that Justice Lai criticised Tilani’s valuation methods, describing comparisons to legendary natural diamonds, like the Farnese Blue, as "a mockery.”

The judge went on to question FXPL’s ownership of the ring, noting no independent evidence supported Tilani’s assertions.

The diamond ring was previously the centrepiece of a S$2 million luxury dining event in Singapore in 2020. Marketed as an 18-course dinner on a private jet, the event gained media attention, including coverage by CNBC and CNA Luxury.

Reports claimed the proceeds were to support humanitarian efforts in Nigeria.

Arbitration findings, however, revealed discrepancies, with the judge highlighting Tilani’s deliberate attempts to inflate the ring’s value and mislead investors.

In July 2024, Tilani sought to reseal court documents, arguing their release would harm his reputation.

The Court of Appeal dismissed the application, noting confidentiality had already been compromised when Tilani disclosed sealed details in another legal proceeding.

This case is not Tilani’s first brush with controversy.

In 2021, The Straits Times reported police investigations into alleged fraud in FXPL’s diamond investment scheme. However, no charges were filed following consultations with the Attorney General’s Chambers.

The arbitration’s findings have spotlighted fraudulent practices in high-value investment schemes, offering a stark warning to potential investors in luxury assets.