Two counterfeit grading reports were discovered in Antwerp, Belgium, the Gemological Institute of America said. The two reports were purportedly for D Flawless stones. The buyer became suspicious and had one of the diamonds tested. "It turned out to be a high-pressure, high-temperature annealed," said Tom Moses, senior vice president of the GIA Laboratory and Research.

"GIA had issued a report for this diamond, but that its color on the original report was E and its clarity was VV[S.sub.1]," he said. "In addition, our normal screening and testing process had determined that the diamond was HPHT annealed. The diamond left our laboratory with full disclosure of the treatment on the report, and an inscription on its girdle indicating it had been HPHT processed. That inscription had obviously been removed. We were told that both diamonds were purchased in a pawn shop in Asia."

Moses noted that GIA reports include numerous security features, including a hologram, security screen, microprint lines, and chemically sensitive paper.