Speaking publicly for the first time, Craig Goodfellow said there was “strong evidence” of alleged fraud by Vashi founder and diamond dealer Vashi Dominguez, who left the UK and disappeared following the company’s liquidation two years ago.
“As an angel investor, I can accept that a business might fail despite best efforts,” Goodfellow said. “But when fraud has taken place, there has to be a backstop to prevent this in the future. I’m angry that the police and the Serious Fraud Office are effectively sweeping this under the carpet. If it is fraud, there is no deterrent, and that makes the UK less attractive for private investors.”
High-profile investors, including Phones4u founder John Caudwell, Charles Tyrwhitt founder Nick Wheeler, and former Pret A Manger chief Clive Schlee, invested millions in Vashi, which operated stores in London, Birmingham, and Manchester, including a flagship outlet in Covent Garden. Investors allege that Dominguez, 46, the Tenerife-born jeweller, misled them about the company’s financial health before fleeing the UK.
There are 483 claims from unsecured creditors against Diamond Manufacturers Ltd, which traded as Vashi.
Dominguez, who gained fame selling diamonds to wealthy clients before moving into high-end retail, promised customers a bespoke experience, allowing them to collaborate with designers and watch their jewellery being made on-site, alongside high-quality diamonds at low prices.
However, liquidators found that £157 million in stock promised to investors was actually worth just £100,000. Accounts submitted to Companies House claimed sales of over £100 million in 2021, but internal documents revealed the real figure was only £5 million.
As the business struggled, Dominguez is alleged to have instructed staff to pose as customers to impress investors, while diamond certifications were reportedly doctored to give the impression of higher quality.
Goodfellow called for urgent action from regulators and police to prevent similar frauds in the future. “What’s to say it won’t happen again? Fraudsters think they can run away to Panama or Dubai and no one will come after them. That’s not right. If this were the US, the FBI would be all over it.”
A spokeswoman for the Serious Fraud Office said it handles only a small number of complex cases each year. “When we decline to progress a referral, this does not necessarily mean there is no suspected criminality, only that other organisations may be better placed to investigate,” she added.
The Metropolitan Police confirmed it had not received any referrals from liquidators or the Insolvency Service. Teneo, the company’s liquidators, said they had complied with all requirements. The Times has made multiple attempts to contact Dominguez.
