L.A. Judge Sets Trial Over Ownership of 840-Pound Emerald

A Los Angeles judge today scheduled a trial to sort out the ownership of the 840-pound Bahia emerald, but an attorney for a business group competing for the gem says his clients may be able to prove they own it without a trial.

Los Angeles Superior Court Judge Michael Johnson said he will begin hearing testimony on Mark Downie's ownership claims on Nov. 17. The stage for the nonjury trial was set after Johnson tossed out the claims of another man, Anthony Thomas of Reno, in January.

The cluster of emeralds is estimated to be worth as much as $400 million.

Johnson released a 35-page decision rejecting Thomas' argument that he was the owner of the gem and called his testimony "unpersuasive" and "not credible." His ruling came nearly four years after Judge John A. Kronstadt also rejected Thomas' assertion to ownership of the emerald. However, that trial ended in a mistrial when Kronstadt was elevated to the federal court.

The third claimant to the Bahia emerald, and the only remaining competitor to Downie, is the investment group FM Holdings, comprised of Kit Morrison, Todd Armstrong and Jerry Ferrara. They say they paid for a shipment of diamonds and took the emerald as collateral in case the diamonds were not delivered.

FM Holdings attorney Andrew Spielberger said he will file court papers, asking that Downie's claims be dismissed  without another trial having to take place. The attorney said all rights to the gem were assigned to FM Holdings.

Johnson scheduled a hearing on the dismissal motion for Sept. 8.

After today's hearing, Spielberger said the Sheriff's Department has custody of the emerald and will not allow the attorneys to see it. Deputies provided photos of it.

The case was first filed by miner Kenneth Conetto in January 2009. Thomas filed his court papers as a claimant to the emerald three months later. Conetto later reached a settlement with FM Holdings.

The cluster, mined in Brazil in 2001, has roughly 180,000 carats of emeralds in nine gigantic crystals, one about as big around as a man's leg. At one point, as many as eight parties laid claim to the find.

—City News Service