On May 30, 2006, rogue lawyer David Rasif walked into Jewels Defred, then in Grand Hyatt Hotel, saying he wanted to invest in diamonds.

Two of Mr Ho’s employees recognised him as a lawyer as he had represented their friend in a previous case.

Over the next four days, the soon-to-be fugitive bought 27 pieces of jewellery and precious stones before disappearing with $16 million of his clients’ funds.

The Zages sued Jewels Defred and Mr Ho for the return of the funds used to buy the jewels.

On Dec 30, 2008, the High Court ruled that Jewels Defred and Mr Ho should not be held liable.

The Zages appealed and early this month, the Court of Appeal decided that Jewels Defred should return $270,000 that was paid with a cheque.

The court held that the jewellers should have known from the words “Clients’ Account” on the cash cheque that the $270,000 did not belong to Rasif.

But the jewellers could not have known the remaining $1.82 million used in the sale also came from the Zages, as Rasif had deposited the sum into the firm’s bank account.

This article was first published in The New Paper.

» Court rules jeweller can keep $1.82 million in Rasif case