Diamond returned to Detroit and started Ghetto Recorders in the fall of 1996. Diamond was also a longtime member of the popular Detroit band The Dirtbombs. Diamond wrote and performed the vocals on the tune "I'm Through With White Girls." The song appears on the Dirtbombs studio album Dangerous Magical Noise and the compilation CD Sympathetic Sounds of Detroit, which was recorded by Jack White. Diamond had to close Ghetto Recorders in the spring of 2015 as the building was being re purposed into a high end apartment in Detroit's downtown.