Third Richest Diamond Retailer Introduced A Diamond Fraud Scheme
2007: Third Richest Diamond Retailer Was Former CEO in Diamond Industry
The former CEO of Friedman’s, at one time the nation’s third largest jeweler, has been charged with an accounting fraud scheme.
Bradley Stinn, 47, former chief executive officer of Friedman's Inc. and its affiliated company, Crescent Jewelers, was charged with lying to shareholders and the investing public about Friedman's financial performance. Two former Friedman's executives have already pleaded guilty to criminal charges in the matter.
Stinn resigned as CEO in 2003. Friedman's filed for Chapter 11 bankruptcy in January 2005.
According to the indictment, Stinn encouraged violations of the company’s accounting and credit guidelines in order to increase the company's reported sales. Prosecutors said the misleading portrayal of Friedman's financial condition resulted in the artificial inflation of its stock price.
Stinn’s lawyer says his client is innocent and will defend himself against the charges.