Fred Leighton Owner Hit With Fraud Charges

Law360, New York (November 22, 2010, 5:07 PM EST) -- The former owner of Fred Leighton Holdings Inc. was arrested Monday by U.S. postal inspectors on charges that he lied during the jewelry company's Chapter 11 proceedings and embezzled more than $40 million in connection with $217 million in loans from a Bank of America Corp. subsidiary and others as part of a scheme to profit from the bankruptcy.

Ralph Esmerian, who owned Fred Leighton Holding and R. Esmerian Inc., defrauded creditors by selling assets that did not belong to him and hiding the proceeds in...
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