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Stolen royal jewel found in Winnipeg

Last Updated: Friday, June 1, 2007 | 8:45 PM CT

A rare diamond pearl, created for royalty and stolen from Austria, was found in a Winnipeg home during an investigation into organized crime, police say.

The Koechert Diamond Pearl, which was made for Empress Elisabeth of Austria in the 19th century, was stolen from a castle in Vienna nine years ago, and found last week during a police operation called "Project Kite."

"If you were to research the 'Sisi Star,' as it's sometimes referred to, you'll see how important it is to Austria," said Sgt. Mitch McCormick, of the Winnipeg Police Service major crimes unit.

The diamond pearls of "Empress Sisi" were created by court jeweller Alexander Emanuel Koechert in the mid-1800s.

Fake identification and complex electronic and computer equipment designed to copy credit cards and retail gift cards were also found during the investigation into what police allege was one of the most sophisticated criminal groups operating in Canada.

"Never have I have seen something as sophisticated and technical as this one," said Supt. Gordon Schumacher of the Winnipeg Police Service.

Police arrested eight people in Winnipeg, Edmonton and Vancouver in January and allege an elaborate criminal organization committed a range of offences, including fraud, theft, and identity theft, in Canada, Europe and Africa.  

The eight accused face charges that include trafficking in credit card data, fraud, and participation in a criminal organization.

Gerald Daniel Blanchard, 35, is in custody and faces 41 counts. Sgt. Mitch McCormick said Blanchard probably has "the best working knowledge on electronics in this country."

McCormick said that some of the electronics and techniques Blanchard allegedly used were unknown to police departments across Canada.

Police claimed those involved in the alleged scheme were experts at bypassing bank security systems.

Police said the investigation started in Winnipeg in 2004, when they targeted a group they believed was responsible for a bank robbery.

Just two days before the bank's grand opening, thieves made off with $500,000 half from its ATMs.

"The sophistication of how the culprits did the offence led us to do some research," Insp. Tom Legge of the Winnipeg Police Service said.

That led police on a lengthy investigation involving forces across Canada.

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