Winnipeg police recover stolen Austrian jewel

A famous jewel crafted in 1864 for one of the most beautiful women in Europe has been traced to Winnipeg, and police allege it was stolen by a criminal organization worthy of a Hollywood film.


The jewel, named the Koechert Diamond Pearl, was designed for Empress Elisabeth of Austria in preparation for a court portrait.


More than a century later, in 1998, it went missing from a palace in Vienna.


Police allege a leading figure in the group behind the theft is 35-year-old Gerald Daniel Blanchard, of Vancouver, who was arrested in January. He now faces 41 charges. Investigators said Blanchard has an incredible knowledge of electronics, and allegedly used that talent to help the group in a crime spree that last for several years and spanned three continents.


"The electronics (used) were unknown to us and most police departments across Canada," said Sgt. Mitch McCormick of Winnipeg's Major Crimes Unit.


Blanchard had apparently rigged a security system in his condominium that allowed him to see people approaching his home from blocks away, but he was asleep at the time of his arrest.


Another seven people were arrested in Winnipeg, Edmonton and Vancouver, as part of an investigation called Project Kite.


The group faces numerous charges including fraud and participation in a criminal organization.


Police also allege they used fake passports, robbed banks and traded in firearms. But most of their money may have come from stolen credit card information, which they transferred to London, England.


"We discovered an international component with a number of individuals in Canada, whereby they were leaving the country, committing frauds and bringing the cash back," said Insp. Tom Legge.


Meanwhile, the Austrian government is eager to have the Koechert Diamond Pearl returned to the country.


Police said only a professional thief could have taken the diamond.


"It was on exhibit in an alarmed, glass, secure case. Someone with enough talent or sophistication was able to steal it during the day," said Legge.

*CTV.ca News Staff, With reports from CTV Winnipeg