On May 28, D & M Capital Group, a New York City–based diamond wholesaler run and owned by dealer Moty Spector, filed for Chapter 11 in Southern District of New York federal court.

According to its bankruptcy papers, D & M’s assets are between $1 million and $10 million, while its liabilities are between $10 million and $50 million.

In 2010, D & M became embroiled in a series of lawsuits with Russian businesswoman Olga Mirimskaya, over a pair of jointly owned blue diamonds, as well as 23.38 ct. Kashmir sapphire ring.

In 2014, the two sides announced a settlement, with Spector buying out Mirimskaya’s interest in the diamonds.

Mirimskaya is listed as D & M’s second-largest creditor, owed $4.6 million. The largest is Essex Global, which is owed $6.5 million, the papers say.

Before forming D & M, Spector was a partner in Vivid Collection. The company, along with the Gemological Institute of America, was the target of a now-infamous 2005 lawsuit. Vivid Collection shut down soon afterward.

Spector did not return a request for comment.

(Photo: Getty Images)

Rob Bates

JCK News Director