Indian banks that purchased claims against three bankrupt U.S. jewelry companies owned by alleged fraudster Nirav Modi can’t collect some $4 million from the jewelers, a federal bankruptcy judge ruled.
A trustee for Firestar Diamond Inc., now in bankruptcy liquidation proceedings, objected to the claims because an investigation showed that the original creditors “received millions of dollars in fraudulent transfers and preferences from the Debtors that have not been repaid.”
As a result, they wouldn’t be able to collect the money, and neither can the branches of the Bank of India and others that purchased the claims, Judge Sean Lane ...
Learn more about Bloomberg Law or Log In to keep reading:
See Breaking News in Context
Bloomberg Law provides trusted coverage of current events enhanced with legal analysis.
Already a subscriber?
Log in to keep reading or access research tools and resources.