Scandal is brewing within the Diamond Dealers Club of New York (DDC) amidst its president’s resignation.
Former President Moshe Mosbacher reprieved himself of his leadership within the organization on September 20th, after a report surfaced detailing the club’s major debt and alleged financial incompetence. Written by industry journalist Chaim Even-Zohar, the report was based “partly on a third party audit being conducted at the club’s behest by Michael Rubin,” according to National Jeweler. Rubin is a CPA not affiliated with the DDC.
The financial mismanagement allegations include an illegal personal loan to Mosbacher to the tune of $100K (otherwise described as “compensation for marketing work he performed for the DDC.”)
Mosbacher, in his letter of resignation, maintains his innocence and states his confidence that “when all facts and figures are known, it will show that there was absolutely no wrongdoing on my part.”
DDC VP Basant Johari has assumed the role of president in the interim while the DDC determines their course of action during the ongoing investigation by Rubin.
On the matter, Rubin stated:
“This was one thing that came up [in the audit]. Some people were aware of it, some people were not. What controversies there were will be clarified very soon. If there’s any controversy, it’s got to be addressed. It’s got to be checked into.”
To read National Jeweler’s report in its entirety, visit their website here.
Liz for Raymond Lee Jewelers, your source for jewelry industry news.
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