County Attorney ZU13 office MONTANA EIGHTEENTH JUDICIAL DISTRICT COURT, GALLATIN COUNTY * * * * *

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1 \~ ~hfl <.:. ~ ~. ~ (,,"0J"0"1 Eric N. Kitzmiller, Deputy Gallatin County Attorney's 1709 West College Bozeman, Montana ( County Attorney ZU13 office GALLATIN G'L'liTY CLERK OF DIS~';":'~i SOlJRT JENNfFf:;;; ::f,,:-::"'c-/j By nug 8 Rr1 S 29 filed DEPUTY }<f.:...- MONTANA EIGHTEENTH JUDICIAL DISTRICT COURT, GALLATIN COUNTY * * * * * STATE OF MONTANA, Case No. : DC-13 - '81 tl Plaintiff, AFFIDAVIT OF PROBABLE CAUSE AND VB. GEORGIA COLD, Defendant. MOTION FOR LEAVE TO FILE AN INFORMATION COMES NOW the undersigned, and being first duly sworn upon oath, deposes and says as follows: 1. Your affiant is a Deputy Gallatin County Attorney, and by law one of the attorneys to prosecute criminal matters in the State of Montana. 2. Based upon a report of investigation compiled by Detective Jonathan Barge of the Bozeman Police Department, your affiant is aware of the following. 3. On December 8, 2012 Gerald Skala reported to the Bozeman Police Department he had provided money to Georgia Cold, the defendant, in Bozeman, Gallatin County, Montana, to purchase objects that Cold represented to be diamonds of various sizes and clarity. However, the obj ects that Cold provided to Skala were not diamonds. Skala indicated he started a business

2 relationship with Cold in May, Skala indicated he began the business relationship with Cold through an advertisement that offered a radiant emerald cut loose diamond on craigslist. Skala indicated Cold told him she was liquidating a gemstone business she inherited from her deceased mother, and she had a number of diamonds for sale. Skala noted from May 16 to August 20, 2012, he purchased a total of 70 objects from Cold for a total price of $89,560. Skala indicated he purchased the objects believing that they were diamonds based on Cold's representations that they were diamonds. Skala indicated that after he received the initial shipments of these obj ects, Cold offered to sell him an additional 17 diamonds (totaling carats for a purchase price of $22,230. Skala accepted Cold's offer and he sent her a cashier's check on September 11, 2012, for $22,230 to pay for the 17 diamonds. 4. After sending Cold the check and receiving the objects he believed were diamonds, Skala (who had become a certified gemologist with the Gemological Institute of America (GIA realized the objects Cold had already sent him as diamonds were not diamonds. Skala noted that after his new training and certification, he was able to identify the objects as synthetic diamond substitutes called Moissanites. Skala also confirmed 2

3 his own findings regarding the purchased objects with two other GIA certified Gemologists before he contacted Cold and instructed her not to cash the cashier's check he sent her for $22, Skala provided the Bozeman Police Department with a variety of s that reflect his communications with Cold as well as a copy of the original advertisement. Skala indicated it was his intent to purchase average quality diamonds at a wholesale price point, and he never agreed to purchase anything other than diamonds. Skala indicated he did not at anytime agree to or believe that he was purchasing Moissanites from Cold. 6. Detective Barge noted that in an from Cold to Skala dated October 2, 2012, Cold promised to tear up Skala's check written in the amount of $22, Skala provided Detective Barge with a copy of the Wells Fargo cashier's check in the amount of $22,230 that he sent to Cold. Detective Barge confirmed with Wells Fargo Bank, that the check was endorsed by Cold and remitted on October 12, 2012 to Wells Fargo. Skala also informed Detective Barge that he met with Cold in Bozeman on November 9, 2012, to return the Moissanites in exchange for a refund or genuine diamonds. At 3

4 that meeting, Skala gave Cold the Moissanites; however, Cold told him she left the check he had sent her at her office. Cold did not provide Skala with genuine diamonds or the check. S. Detective Barge learned that on December 2, 2012, Cold sent Skala an indicating his check had unfortunately been deposited, and she would send more diamonds in exchange. Detective Barge noted Skala indicated he had informed Cold he was not willing to purchase anything but diamonds, and that Cold led him to believe her accountant had remitted the check accidentally without her knowledge. 9. On January 16, 2013, Detective Barge spoke with Cold by phone. Cold indicated she could not come in to speak with Detective Barge because she was ill. However, she agreed to speak with him over the phone. Cold indicated she had conducted business with Skala via craigslist and . Nevertheless, she denied knowledge of any check from Skala that he told her not to cash, and she did not recall promising to tear up the check. Cold indicated her accountant handles all the financial dealings of her business. Detective Barge noted Cold was vague about her business dealings, she could not state how much she buys or sells or provide an estimate of how much profit her business makes. Cold could not remember conducting over $100,000 of 4

5 business with Skala in Cold referred Detective Barge to her accountant Trinidad Ponce De Leon. 10. Detective Barge noted from his discussions with Skala and examination of the correspondence provided by Skala, he learned that Cold and Skala had agreed to hire Thomas Elliott to inspect the objects Cold was trying to sell to Skala. Detective Barge noted Elliott is a GIA certified gemologist in Bozeman, Montana. 11. On January 16, 2013, Detective Barge spoke with Elliott. Elliott indicated Cold brought him Moissanites and a few poor quality diamonds to inspect. Elliott noted Cold was sketchy at best. Elliott also noted Cold indicated to him that she had sent a man some stones that were not diamonds, but she had portrayed them to be diamonds. Elliott indicated Cold commented about trying to make the man happy because she had sold him some stones that were not what they were portrayed to be. 12. On February 6, 2013, Detective Barge spoke with Michael A. Conlon, a District Branch Manager for Wells Fargo. Conlon indicated there were four photos of Skala's check being deposited. On February 20, 2013, Detective Barge received an Investigative Subpoena for the Wells Fargo security photos and Cold's accounting records. Detective Barge observed the 5

6 security photos, and he confirmed the surveillance photos showed Cold remitting Skala's cashier's check for $22,230 at Wells Fargo in Bozeman, Montana on October 12, On February 28, 2013, Detective Barge spoke with Paul Noble, Cold's business partner and significant other. Noble delivered business invoices for the purchase of Moissanites to Detective Barge. Noble indicated he and Cold had been considered starting a gemstone business, but they later decided against it. Noble also indicated Cold told him she bought the gems she sold to Skala from a company in the eastern United States. Noble noted that Cold understood she was buying Moissanites from that company, and Noble thought Cold was representing them as such. Noble also noted Cold never had any family inheritance of gemstones. 14. Detective Barge conducted an internet search for eastern companies in the business of selling Moissanites, and he found Moissanites.com, LLC with a font that matched the invoices provided by Noble. 15. On March 4, 2013, Bozeman Police Detective Robert Vanuka discovered that Cold listed as a debtor on her bankruptcy application the company Malossi, Inc. Detective Barge contacted Andy McCord, the owner of Malossi, Inc., and discovered his 6

7 _.- -.._...._._ company was a subsidiary of Moissanites.com, LLC. McCord indicated that there is only one producer of Moissanites in the world, Charles & Colvard, and he deals in selling Moissanites from Charles & Colvard to small business clients that Moissanites. com, LLC does not deal with. When Detective Barge advised McCord that he was investigating a case in which an individual was suspected of attempting to pass off Moissanites as diamonds, McCord identified Cold as the person in question without Detective Barge mentioning her name. McCord indicated Cold did business in a suspicious manner. McCord noted Cold paid by using money orders rather than business checks, used multiple money orders per transaction rather than one per invoice, was vague about her business, communicated primarily by and text message, and she refused to pay for a shipment by claiming a package she received was empty despite the fact McCord packed it personally. McCord supplied Detective Barge with invoices of his dealings with Cold, which indicated she bought a total of 39 Moissanites for approximately $14, On March 5, 2013, Detective Barge contacted the sale Moissanites manufacturer in the world, Charles & Colvard, and spoke with their representative, Anita Sullivan. Detective Barge learned that Sullivan spoke with Cold in the spring of 7

8 2012. Sullivan indicated she explained to Cold that Charles & Colvard sold Moissanites, not diamonds, and told her to contact Malossi Inc. because Charles & Colvard did not sell to independent retailers. Sullivan noted that McCord, of Malossi Inc., used to hold her position with Charles & Colvard, and that both Malossi Inc. and Charles & Colvard are up front with their customers about the fact they sell Moissanites not diamonds. Sullivan also indicated that no one in the Moissanites industry ever refers to Moissanites as actual diamonds. 17. Detective Barge reviewed the total transactions between Skala and Cold, and calculated the total amount of money Skala gave to Cold for what he believed were diamonds was $111,790. Detective Barge estimated that the total value of the Moissanites Cold provided to Skala was approximately $26,180. 8

9 18. Based on the foregoing facts, the undersigned moves the court for leave to file an Information charging the defendant with the offense(s of: Count 1, Theft, as part of a common scheme or plan, a Felony, in violation of , MCA. Dated this ~ day of.-~~"';"":"':""""~7"<""'7'- ' Eric N. Ki iller Deputy County Attorney hn1il~~scribed ~' and ""~o~:~'.~' ~~~"" LYNDSEY R BABCOCK,.-,f' "Oo'~ Notary Public, :J:,,~OTAHI-;( ',';: for the State of Montana :..' SF'\L' * : Flosiding at -,'1.',,".,'~<r,.- Bozeman, Montana "';('(~~;D"""> My Commission Expires' ".:".,,' Jrlndary 28,2016 ' 9