N.Y. Jeweler Faces Bankruptcy Fraud Charges

A New York City Diamond District jeweler was arrested on
bankruptcy fraud charges March 9.

The United States Attorney for the Southern District of New
York charged that Shalamu Nisimov made false claims in bankruptcy court
regarding a fictional customer who failed to pay for approximately $5.6 million
in merchandise.

According to the complaint filed in Manhattan federal court,
Nisimov, the owner of Diva Jewelry Design, filed a voluntary petition for
Chapter 7 relief in the U.S. Bankruptcy Court for the Southern District of New
York in September 2006.

During the bankruptcy proceedings, Nisimov listed as
accounts receivable approximately nine purported shipments of jewelry to
Armenia, in the amount of approximately $5.6 million of merchandise on credit
to a company called “Argo LLC,” operated by an American-based client “Fruntik
Makartichiyan.” Nismov claimed that he had sent him merchandise on credit
through unnamed messengers and intermediaries, but that Makatichiyan had failed
to pay for it.

Nisimov did not have any documentation from Makartichiyan or
Argo LLC.

According to the complaint, Nisimov kept or sold merchandise
that had been provided to him on consignment and/or credit. Nisimov’s creditors
have filed proofs of claim in the total aggregate amount of approximately $6
million, including claims for jewelry that was provided to him on consignment
and/or credit, at least some of which Nisimov claimed to have given to

Nisimov was presented before U.S. Magistrate Judge Kevin N.
Fox March 9. He was released on a $150,000 bond. He faces a maximum of five
years in prison.

Nisimov’s attorney did not return a phone call requesting

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