NEW SCOTLAND — A jeweler who lives in New Scotland has admitted to conning his customers out of thousands of dollars by selling fake diamonds and switching their family heirlooms with duds.

Peter Spinelli, 50, proprietor of a Central Avenue jewelry shop in Colonie, pleaded guilty to two felony counts of grand larceny on Tuesday morning. Admitting to stealing jewelry from customers at his store, Spinelli is now facing between $200,000 and $400,000 worth of restitution and could serve between two-and-a-half years to eight years in prison.

Albany County Court Judge Thomas A. Breslin heard the case and will sentence Spenelli in February.

Spinelli stands convicted of selling fake diamonds to his customers on several occasions, and, in some instances, even trading real stones with fake ones during routine cleanings and repairs.

Spinelli was arrested last May when a customer noticed that the stone in her ring looked different after dropping it off at his store for repair; another jeweler determined the stone was a high-quality fake, according to the Office of District Attorney David Soares.
Soares’s office said they "prosecuted the case on behalf of an honorable profession that relies on the confidence of its customers."

Spinelli is currently out on $40,000 bail. Christopher Bynes, the assistant district attorney of Soares’s White Collar Unit, handled the case.
"He is trying to make restitution," said Soares’s spokeswoman, Rachel McEneny. "He has already made some restitution. The more that he makes will really determine what will happen during his sentencing."

McEneny told The Enterprise that Spinelli admitted to defrauding his customers and that his sentencing will be based on two class E felonies, including restitution.

William Gray, Spinelli’s attorney, could not be reached for comment.

Spinelli currently lives with his wife, Karen, at their 658 Krumkill Rd. home in New Scotland. The couple bought the land for their home in 1993 for $100,000, and built their house the following year, according to town records. The two-story house, and its adjoining 27 acres of land, is now currently assessed at $775,000.

An adjoining 500-square-foot garage was also added in 1994 and a barn was erected on the property in 1997.