The Queens gem dealer had the diamonds because of a deal that fell through that day to sell as much as half a million dollars of gems. He went to a bar to drink away his disappointment when he met the the 23-year-old Hispanic woman. He says that he may have been drugged, but realized that she was a prostitute. After getting to a hotel, Kaiser says that he put the 45 uninsured stones — 290 carats of diamonds — into a dresser to hide them. He woke up around 6 am and found both the girl and the stones gone. A video shows the prostitute leaving with Kaiser’s briefcase.
My first thought was that, if the $50,000 of diamonds were not uninsured, I would be highly suspicious of the account. It would have made for an interesting insurance claim. Going to a hotel with a prostitute and a bag of uncut diamonds would appear grossly negligent conduct. Question: if insured, would the company be able to deny coverage for grossly negligent conduct based on these facts?