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FBI Investigates Diamond Investment Deals Linked to Lugano Diamonds Founder December 17, 2025 (0 comments)
Newport, CA--Federal authorities are investigating diamond investment transactions linked to Mordechai “Moti” Ferder, founder and former chief executive officer of Lugano Diamonds & Jewelry, according to a Fashion Network report.
[Image via iStock.com/stuartmiles99]
The report stated that FBI agents have interviewed individuals involved in diamond-related agreements with Ferder. Lugano said it is cooperating with the investigation.
Lugano, a Newport Beach-based luxury jewelry chain with about six boutiques, sued Ferder in June. As per the report, the company accused him of disguising gem-backed financing as direct sales. Lugano filed for bankruptcy protection last month, and Ferder is residing in Israel, according to court filings.
The report noted that Lugano, Ferder, or related parties face lawsuits from about a dozen individuals or firms, with potential liabilities exceeding $100 million. Lugano’s majority owner, Compass Diversified, said in May it would restate its financial statements.
Ferder’s lawyer said his client has not been contacted by the FBI or the Justice Department and denies any criminal wrongdoing.
Compass said it is cooperating with authorities and that an internal investigation concluded Lugano’s former CEO recorded fictitious sales and misrepresented inventory values. Compass acquired a 60% stake in Lugano in 2021 for $198 million. The retailer plans to sell its business through Chapter 11 proceedings.
Learn more in this Fashion Network report.