And Pennsylvanian Judge Stephen Levin agreed with Mr Smith, finding he was conned into an engagement by the woman who took the $24,000 ring back to Sydney and weeks later vanished from his life.
"Mr Smith, unfortunately, was conned into entering into an engagement," the judge found.
Judge Levin said Mr Smith was conned by Ms Rothschild. He expressed sympathy for Mr Smith, who told the court he was left disillusioned by the experience. The judge suggested the Sydney woman was suspicious and may have fabricated her name.
Countess von Buelow said her full name was genuine and it was listed in her passport.
"It is not a fabrication," she said. "This judge doesn't know me. He did not talk to me or hear from me before reaching this verdict. I am deeply hurt by what he said. My name is being dragged through the garbage."
Judge Levin's finding was made during a court hearing into a claim by Mr Smith to force his insurance company to cover the cost of the $24,000 ring.
He claims it was stolen by the Sydney woman.
The judge has ruled in favour of the insurance company, saying it is not liable for the claim. Mr Smith is appealing against the verdict.
Countess von Buelow disputed Mr Smith's account of the ring. But she did admit after returning to Sydney she sold it for $4500.
