Federal authorities are investigating off balance-sheet transactions involving Lugano Diamonds & Jewelry, a chain of high-end boutiques that’s accused its founder of misrepresenting diamond investments he brokered with wealthy clients.
Lugano
FBI agents have interviewed individuals who struck deals with Lugano founder and former chief executive officer Mordechai “Moti” Ferder as part of an investigation into the business, according to people familiar with the matter. A Lugano spokesman said the boutique is cooperating with the probe.
The Newport Beach, California-based chain of about a half-dozen shops, which is majority owned by Compass Diversified, sued Ferder in June and accused him of manipulating Lugano’s accounts by disguising the gem-backed financing as direct sales. Lugano filed for bankruptcy protection last month and Ferder is residing in his native Israel, according to court documents filed by the company.
Lugano, Ferder or related parties have been sued by about a dozen individuals or firms over the diamond investment contracts. The boutique has claimed Ferder entered into financing deals that together may represent more than $100 million in liabilities to the business. Compass said in May it would restate its financial statements.
Ferder’s lawyer Jeffrey Reeves said his client hasn’t been contacted by the FBI or the Department of Justice.
“Mr. Ferder maintains his innocence and denies any criminal wrongdoing,” Reeves said. “We remain focused on defeating the civil claims brought against him as well as prosecuting the counterclaims he intends to file against Compass Diversified, Lugano, and others.”
An FBI spokesperson didn’t reply to multiple requests for comment.
Lugano said in its lawsuit filed in a state court in California that Ferder offered clients stakes in valuable diamonds that the boutique already owned, promising hefty returns once the gems were sold. The lawsuit claims Feder told Lugano personnel that the deals were ordinary sales. Feder has denied the allegations and claimed Lugano and Compass were aware of the contracts.
Lugano interim CEO Josh Gaynor said in a June email to an investor who sued Ferder that those “who have expressed interest in any parallel criminal investigations” may wish to contact an FBI agent, according to court documents filed in an investor lawsuit. The agent has been assigned to the complex financial crime squad in the agency’s Los Angeles field office, according to papers filed in unrelated court cases.
A Compass spokesman said the firm “has been cooperating with the authorities investigating this matter, as well as conducting our own extensive internal investigation.”
Compass released its restated earnings on Monday and said in a securities filing that its internal investigation determined Lugano’s former chief executive officer “deliberately engaged in fraudulent activity” by recording fictitious sales and misrepresenting the value of the jewelry boutique’s inventory. The conglomerate is now focused on cutting debt and “putting this chapter behind us,” Compass CEO Elias Sabo said. It is considering selling some businesses to reduce debt, it told investors last week.
The group acquired a 60% stake in Lugano in 2021 for $198 million and opened additional locations in the US and London, which was recently closed, according to court papers.
The boutique is planning to sell its business in Chapter 11. In September, a holding company that owns Ferder’s shares in Lugano as well as a title to an Aspen property also filed for bankruptcy. Ferder ceded control of the holding company to Lugano’s chief restructuring officer, according to court papers.
Delsey turns its focus to international markets. The luggage brand has just announced the appointment of its new global managing director, Gilles Bariguian. He will lead the group into a new phase of accelerated international expansion, a move upmarket, and towards profitable growth as the brand approaches its 80th anniversary in 2026.
Gilles Bariguian brings extensive experience in luxury and international markets – Delsey
“I am delighted and honoured to be working with the teams to elevate the brand and open a new chapter of global development in a rapidly changing mobility market. Delsey is no longer just a travel brand; it now caters to every moment of mobility, a market that has evolved significantly since the Covid-19 period,” said Gilles Bariguian.
Diversifying its international presence
With 20 years’ experience at Procter & Gamble across four continents, and roles at Guess EMEA, Etoile Group (specialising in luxury in the Middle East), and Cenomi (a department-store chain in Saudi Arabia), Delsey’s new global managing director will be tasked with steering the Parisian brand’s international expansion. At the same time, he will continue his consulting work with the Saudi Fashion Commission and its 100 Brands programme.
With its strongest presence in the US (2,561 points of sale) and Europe (1,688), the brand counts just over 300 points of sale in Asia and 111 across the Arabian Peninsula.
Beyond international expansion, the objectives of the new global managing director are to accelerate digital transformation, broaden the product portfolio, and build sustainable, profitable growth for Delsey, a company founded in 1946.
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Amazon has agreed with Italy’s tax collection agency to pay 510 million euros ($582 million) to settle a tax dispute in the country, two sources close to the matter said on Wednesday.
Amazon logo is seen in this illustration created on February 11, 2025 – REUTERS/Dado Ruvic/Illustration/File Photo
However, in an unusual development, Milan’s prosecutors are in disagreement with the accord between the revenue agency and the U.S. tech company and plan to continue their investigation, two other sources said.
The prosecutors, who suspect evasion amounting to some 1.2 billion euros related to 2019-2021, expect to wrap up their probe early next year, according to the second two sources familiar with the investigation.
The prosecutors are also conducting two other investigations into the company – one involving alleged tax evasion relating to 2021-2024, and another involving alleged customs and tax fraud involving Chinese imports.
Topshop will be back in Australia from next February with a comeback launch in all 56 of key department store retailer Myer’s stores.
Cara Delevingne, the face of Topshop’s revival – Topshop
It’s the latest development in a relaunch story that has seen it inking online and physical store deals in multiple countries. It’s currently available physically in the UK, Ireland, Belgium, France, Denmark, Germany, the Baltic states, and Spain, and is continuing a long-term link-up with Nordstrom in the US. It’s planning around 20 international relaunches in 2026.
As with its relaunch in other countries, the Australian offer will be built around “sharp tailoring, statement outerwear and reworked denim” with long-time popular jeans styles.
Topshop’s brand director Henrik Matthiesen called the Myer deal an “important milestone as we reintroduce Topshop to the world. Working with Myer allows us to bring our renewed vision to the Australian market with energy, relevance and a stronger connection to how people want to dress today, all while building on Topshop’s iconic British heritage”.
And the department store chain’s chief merchandise officer Belinda Slifkas highlighted how the retailer is continuing to “refresh and elevate our womenswear offering with globally relevant, fashion-forward labels. We’re seeing a growing number of younger customers choosing Myer, and with Topshop’s arrival, we’re confident this will further strengthen our appeal and deepen our connection with this customer group”.
Topshop was last available in Australia as far back as 2020 and its return to the market will also see it available online there as well as in physical stores.
Its relaunch this year has grabbed headlines all the way as it has staged high-profile events like its Trafalgar Square runway takeover in the summer. It has also attracted plenty of interest by linking up with higher-end retailers such as Liberty, Printemps Haussmann, and Magasin du Nord.
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