The FBI has launched a federal probe into diamond trade activities involving Moti Ferder, founder of luxury jeweler Lugano, amid suspicions of illicit financial flows. The investigation centers on transactions tied to high-value gemstone deals between 2020 and 2024.
- FBI investigation into Moti Ferder and diamond transactions involving $120 million in gemstone deals (2020–2024)
- Offshore shell companies in the BVI and Cayman Islands used in diamond transfer network
- Lugano’s 2023 revenue reported at $85 million, under scrutiny for accuracy
- Luminous Holdings Inc. stock dropped 18% in pre-market trading
- Broader regulatory review of U.S. diamond import compliance underway
- Focus on potential money laundering and links to sanctioned regions
The Federal Bureau of Investigation has initiated a formal inquiry into a series of diamond-related transactions connected to Moti Ferder, the founder of Lugano, a high-end jewelry brand based in New York. According to internal records reviewed by financial watchdogs, over $120 million in rough and polished diamonds were reportedly transferred through offshore entities between 2020 and 2024, with no clear documentation of origin or end-use. The probe focuses on a network of shell companies registered in the British Virgin Islands and the Cayman Islands, which appear to have facilitated the movement of diamonds from African and Southeast Asian sources to U.S. markets. Authorities are examining whether these transactions were used to conceal proceeds from sanctioned regimes or to launder funds through the luxury goods sector, a growing concern for U.S. financial regulators. Key figures in the investigation include Ferder, who previously served as CEO of Lugano from 2012 to 2023, and three co-owners of intermediary firms linked to the diamond trades. The FBI is also seeking to verify whether the jewelry firm’s annual revenue—reported at approximately $85 million in 2023—was inflated or understated in tax filings and export declarations. Market participants, including private equity investors and luxury retail analysts, are monitoring the situation closely. Lugano’s parent holding company, Luminous Holdings Inc., has seen its stock price decline by 18% in pre-market trading following the news. The investigation may prompt broader scrutiny of the U.S. diamond import system, especially as the Federal Trade Commission and Treasury Department review compliance protocols for high-value commodity trade.