The former owner of rare-jewelry seller Fred Leighton was arrested Monday and charged with engaging in a fraud and embezzlement scheme that caused the company to enter bankruptcy protection in 2008.

The U.S. Attorney's Office for New York's Southern District said Monday that Ralph Esmerian, who bought the jewelry company in 2006, stole more than $40 million worth of company property between April 2008 and November 2009 and used it to secure more than $210 million in loans, both to buy the company and for personal use.

In one case, Esmerian sold a diamond brooch -- one that had been used as collateral for a loan from Merrill Lynch -- for $2.5 million and pocketed about $1 million, according to the U.S. Attorney's Office, which also is charging Esmerian with bankruptcy fraud.

Esmerian, 70, was arrested Monday in New York and may face penalties of up to 30 years. Kwiat Enterprises acquired Fred Leighton, which has stores in New York and Las Vegas, for about $25 million in 2009.

Esmerian was released late Monday on $3.5 million bail.


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BRUCKES

He's 70 and probably politically connected. He won't see a day in jail. lol

February 24 2011 at 2:59 PM Report abuse rate up rate down Reply
beemerboxer

Greed begets greed. Another old cheater is caught and it is doubtful he will live long enough to serve his just sentence. Warm up the cell next to madoff, this guy will be in good comapny.

November 23 2010 at 12:09 PM Report abuse rate up rate down Reply
kluj1

lmao....i fricken love it.

November 23 2010 at 11:23 AM Report abuse -1 rate up rate down Reply
Janine

It's about time some of these lowlife cheaters & thieves be caught in their own traps.

November 23 2010 at 9:52 AM Report abuse +4 rate up rate down Reply
thor464

bendito

November 23 2010 at 9:35 AM Report abuse +2 rate up rate down Reply