DIAMOND RETAILER AGREES TO PAY FINE.

Byline: Michael Coit Daily News Staff Writer

Ventura County's largest diamond retailer Friday settled a lawsuit brought by county prosecutors that claimed misleading advertising and unfair competition, agreeing to pay $50,000 in fines and restitution.

Judge David Long signed the final judgment in Superior Court that includes a permanent injunction restricting George Thompson and his employees from making claims that made Thompson's name familiar to consumers across the region.

The judgment also makes final a preliminary injunction issued in Superior Court a year ago. Thompson must have a qualified appraiser verify comparison advertisements and retain the associated records, and Thompson must follow court-imposed guidelines when comparing diamond carat weights.

``These are safeguards in an area where consumers are virtually unprotected,'' said Deputy District Attorney Mitch Disney. ``What got him into trouble is that he touted his business as the basis for claiming lower prices than other jewelers. When we examined the truth of those claims, many had no basis in fact.''

Disney filed the civil lawsuit in December 1995 after receiving some 30 complaints about Thompson's business practices.

The settlement was reached as the two sides prepared for a March 24 trial date.

Thompson remained defiant despite the settlement, acknowledging only that he was guilty of ``maybe a little too much puffery'' in his advertising claims.

``I'm happy to sign such an agreement,'' Thompson explained. ``Any merchant would be pleased to sign such an agreement, since it was written by the district attorney and further indicates that my own business is honest and aboveboard in dealing with clients. I expect my business to increase as a result.''

The man who has claimed to be ``your friend in the diamond business'' since 1977 continues to operate from the 14th floor of one of the Financial Plaza towers that loom over the Oxnard Plain.

The civil lawsuit, filed after a 10-month investigation, claimed that Thompson ran advertising for several years that contained false information about the quality and manufacturing of the jewelry he sells.

Disney said five victims were named in the judgment and will receive a total of $2,500 in restitution. The prosecutor said two victims purchased diamonds weighing less than advertised and three purchased diamonds of lesser quality than claimed.

The fines were $30,000 in civil penalties and $17,500 for attorney fees and related costs.

``We settle when we feel we have a deal that's close to what we can get at trial and we think it's adequate to protect the public,'' Disney explained.

Disney noted that county prosecutors have not received additional complaints since Thompson first was ordered to change his business practices.