Crescent May Settle $74M Fraud Suit For $2M

Law360, New York (July 5, 2006, 12:00 AM EDT) -- A $2 million cash payment may bring an end to a $74 million fraud lawsuit filed by Capital Factors Inc. against bankrupt jewelry chain Crescent Jewelers, allowing the jeweler’s Chapter 11 proceedings to speed to a close.

Capital, an affiliate of Cosmopolitan Gem Corp., one of Crescent’s suppliers, filed a lawsuit against the jeweler before the company’s Chapter 11 filing.

The suit alleged fraud, financial misrepresentation, and violations of the Racketeering Influenced and Corrupt Organizations Act, claiming that Crescent and Cosmopolitan conspired to defraud Capital....
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