Archive · 18 Nov 2025
Lugano Diamonds Files for Bankruptcy Amid Fraud Allegations
Lugano Diamonds, a high-end jewelry store, went bankrupt because its former CEO was accused of stealing money and lying about how much the company was making.
The company wants to sell itself to another business, and its stores are still open.
Lugano Diamonds & Jewelry Inc. has filed for bankruptcy in Delaware
The company accused its former CEO, Mordechai Haim Ferder, of stealing millions and misrepresenting deals
Lugano has an offer to sell the business to Enhanced Retail Funding, subject to approval and auction
Ferder is accused of concealing transactions, misleading stakeholders, and moving assets to Israel
Lugano's revenue and operating income are now revised to be substantially lower
- Who
- Lugano Diamonds & Jewelry Inc., Mordechai Haim Ferder
- What
- Filed for bankruptcy, accused former CEO of fraud
- When
- Sunday, December 2025
- Where
- Delaware, USA
- Why
- Allegations of fraud and misrepresentation by former CEO
Lugano's Stakeholders
Ferder's Entities
Ferder's Actions
Lugano's Stakeholders
Accused of stealing, misrepresenting deals
Ferder's Entities
Has not formally responded to allegations
- Liabilities
- Over $500 million
- Ferder's Stake
- About 40%
- Revised Revenue (2024)
- Substantially lower than $470 million
- Revised Operating Income (2024)
- Substantially lower than $180 million