The accusations against Moti Ferder of fraud involving his company Lugano Diamonds and Jewelry will be heard in Santa Ana.
Judge Fred Slaugher on Friday denied Lugano’s motion to transfer the case from Orange County to Delaware.
The Newport Beach-based jeweler has accused Ferder, who co-founded the company in 2004, of “allegedly stealing millions of dollars and exposing (Lugano) to significant potential liabilities and reputational harm,” according to a March 13 court filing.
Last May, Ferder resigned from his position at Lugano following an internal investigation into the jeweler’s inventory and accounting. Lugano later filed for bankruptcy in November and was recently acquired by a firm called Enhanced Retail Funding.
