Dispute over big diamond goes on

The case was sent back to Columbiana County
Common Pleas Court.

By D.A. WILKINSON

VINDICATOR SALEM BUREAU

LISBON — The 7th District Court of Appeals has told a judge to make additional findings of fact in a case tied to a dispute over a $1.9 million diamond.

Judge Mary DeGenaro, the presiding appellate court judge, wrote the opinion that was released Thursday.

In her opinion, she said Judge C. Ashley Pike of Columbiana County Common Pleas Court misapplied the law.

William Kimpel, a Columbiana jeweler, and his now ex-wife, Wendy, had operated three businesses: a jewelry store, Providential Opportunities Inc. and Wenkar LLC, which owned and operated rental properties.

Mark and Luther Thompson of Columbiana run Esteco Inc., an investment firm.

Esteco in 2003 had loaned Providential $500,000 based on collateral that included the 4-carat diamond.

In the appeal, Esteco argued that Judge Pike’s initial ruling didn’t address whether a transfer of loan funds from William Kimpel to one of the three companies was fraudulent.

“Esteco is correct,” Judge DeGenaro wrote.

Craig E. and Hilda Rose Newbold of Columbiana have said in another court case that they bought the ring from William Kimpel and asked him to sell it as an investment.

Judge Pike has ruled the diamond is the property of Esteco. That ruling also is being appealed by the Newbolds.

Judge DeGenaro noted that the ring allegedly did not belong to William Kimpel or any of the Kimpel couple’s companies.

She wrote the issue was whether the transfer of funds from William Kimpel to the couple was fraudulent, not whether the transfer from the couple to Wenkar was proper.

Some $183,634 of the loan from Esteco went to Wenkar Inc., leaving Providential with only $10,000, says Judge DeGenaro in her opinion.

William Kimpel told the courts that Providential had other assets, but the documentation had been stolen.

Judge DeGenaro said state law is designed to give creditors the opportunity to set aside allegedly fraudulent transfers of assets.

One sign of fraud under Ohio is that a company gets little or nothing in return for a transaction, Judge DeGenaro wrote.

The jewel has been kept in a safety deposit box in National City Bank along with a setting pending resolution of the court cases.

wilkinson@vindy.com