St. Petersburg Man Arrested for Allegedly Stealing 36 High-End Watches from Gold & Diamond Source
In a significant breach of trust, 32-year-old Michael Kelly, a former employee of the renowned Gold & Diamond Source in Clearwater, has been arrested for allegedly stealing 36 luxury watches over a span of nearly four years. The thefts, which occurred between October 31, 2021, and May 3, 2025, have resulted in a reported financial loss exceeding $650,000 for the business.
A Prolonged Scheme Uncovered
Authorities allege that Kelly systematically removed high-end timepieces from the store’s inventory, exploiting his position of trust within the company. The thefts went unnoticed for an extended period, highlighting potential lapses in internal security measures. It wasn’t until a comprehensive audit was conducted that discrepancies in the inventory were discovered, leading to an internal investigation.
Upon uncovering the missing items, Gold & Diamond Source promptly terminated Kelly’s employment on May 10, 2025, and reported the thefts to local law enforcement. Subsequent investigations led to Kelly’s arrest, and he now faces charges related to grand theft and employee misconduct.
Impact on the Business and Community
Gold & Diamond Source, a staple in the Clearwater community, is known for its extensive collection of fine jewelry and timepieces. The substantial financial loss not only affects the company’s bottom line but also raises concerns about employee oversight and inventory management practices within the retail jewelry industry.
The incident has sent ripples through the local business community, serving as a stark reminder of the importance of stringent internal controls and regular audits to prevent such breaches of trust.
Legal Proceedings and Next Steps
Michael Kelly is currently in custody, awaiting trial. If convicted, he could face significant prison time, along with restitution payments to cover the financial damages incurred by Gold & Diamond Source. The case underscores the serious legal consequences of employee theft and the importance of ethical conduct in the workplace.
As the legal process unfolds, Gold & Diamond Source has expressed its commitment to reviewing and strengthening its internal policies to prevent future incidents. The company has also thanked local law enforcement for their swift action in apprehending the suspect and recovering some of the stolen merchandise.
This case serves as a cautionary tale for businesses everywhere about the potential risks posed by internal threats and the necessity of proactive measures to safeguard assets.