Published: Tuesday, August 09, 2011, 5:19 AM    

Updated: Tuesday, August 09, 2011, 10:09 AM

http://blog.cleveland.com/metro/2011/08/us_marshals_say_flawless_golde.html

U.S. Attorney's Office

This 43-carat diamond was seized in 2007 as part of a money-laundering conspiracy. It will be auctioned online Sept. 6-8, with the money benefiting law enforcement, victims and others.

CLEVELAND, Ohio -- The "Golden Eye Diamond," which federal agents seized in 2006 during a drug sting, goes up for sale next month.

Bidding starts at $900,000 for the 43.51-carat diamond, which U.S. Marshals are calling a "Flawless Fancy Intense Yellow Diamond."

It requires $180,000 just to get a look at what is believed to be one of the world's most perfect and flawless canary yellow diamonds.

An online auction will start at 8 a.m. Sept. 6 and end at 3 p.m. Sept. 8.

The diamond measures 25.7 millimeters long (a little longer than 1 inch), 18.11 mm wide and 10.78 mm in depth. It is in an office in the Anthony J. Celebrezze Federal Building in Cleveland.

The diamond was once owned by Alliance millionaire businessman Paul Monea, who also owned a Trumbull County mansion once owned by former heavyweight boxing champion Mike Tyson.

Monea was convicted of money laundering and conspiracy in 2007 in U.S. District Court in Akron. Prosecutors said he tried to sell the golden gem to an undercover agent posing as a broker for a South American drug cartel. The diamond was forfeited to the U.S. government.

Federal agents said it is unclear how Monea acquired the diamond, and he wouldn't say, but beginning in 2005 he started using it as collateral in business dealings.

His arrest came from an investigation by the FBI, the Internal Revenue Service and other authorities into Stark County car dealerships suspected of laundering money from drug dealers.

Ryan Helfrich, deputy U.S. marshal in the Northern District, said the $180,000 is a fully refundable deposit that allows interested bidders the right to view the diamond. Bidders must schedule an appointment to view it by sending an email to inspections@Bid4Assets.com or calling Reynell Saxon at 1-877-794-1542, Ext. 135.

Viewings will be from 9 a.m. to 3 p.m. Aug. 29 through Sept. 2.

Once bidding starts at $900,000, Helfrich said, it will go up by $110,000 increments.

How much is the "Golden Eye Diamond" really worth? The question is difficult to answer, according to Assistant U.S. Attorney Robert Bulford.

When Monea and "John Rizzo," an undercover FBI agent posing as a drug dealer, met with "Geraldo," another FBI agent who appeared interested in buying Monea's diamond and his mansion in October 2006, Monea agreed to sell the diamond and mansion for $19.5 million and a boat.

In a 2009 interview, Bulford said the diamond is unique, so that it is difficult to place a value on it. He said it could be worth as little as $3 million or as much as $20 million.

Helfrich agreed, saying the texture of the diamond is crystal with a "very, very slight" internal graining. He called the crown a brilliant cut with 25 facets.

"While we can't be sure, we are expecting national and international bids," Helfrich said. "What it is worth on the market is subjective. I've seen online articles saying it is worth between $15 million and $20 million, but it's real worth will be how much the highest bidder is willing to spend."

Helfrich said part of the proceeds from the sale will go to victims in the Monea case, part will go to litigants the court deems legitimate, and part will go to state agencies that assisted in the investigation.