Jeweler Files for Bankruptcy as PNB Fraud Rises to $2 Billion
- Firestar, affiliates file for bankruptcy in New York
- Punjab National Bank shares plunge most since 2004 in Mumbai
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The international jewelry business that’s part of the empire controlled by Nirav Modi, a billionaire accused of masterminding India’s biggest bank fraud, has filed for bankruptcy in the U.S. just as the Indian lender at the heart of the scam revised up its fraud estimate.
Firestar Diamond Inc. blamed liquidity and supply chain challenges and listed up to $100 million in assets and debt, according to Chapter 11 documents filed Monday in a bankruptcy court in New York. Back in India, Punjab National Bank told the stock exchanges that the fraudulent transactions could be $204 million more than the previously estimated $1.8 billion.