Independents

Former Employees File New Lawsuit Against CD Peacock

IndependentsApr 06, 2022

Former Employees File New Lawsuit Against CD Peacock

Like the previous suit, it accuses the jeweler of conspiring to sell Rolex watches on the gray market and firing whistleblowers.

2022_CD Peacock.jpg
In a new lawsuit filed against C.D. Peacock, former employees have again accused the Chicago-area jeweler of conspiring to sell Rolex watches to gray market resellers and firing those who blew the whistle on the alleged scheme. (Image courtesy of C.D. Peacock’s website)
Chicago—A new lawsuit was filed against Chicago-area jeweler C.D. Peacock last month as part of an ongoing dispute with former employees.

In the suit, Olga Nelson, Suzana Krajisnik, and Giuseppe Di Lorenzo accuse the retailer and some of its employees of conspiring to sell Rolex watches to gray market resellers overseas and firing them for blowing the whistle on their activities.

Previously, Krajisnik filed a lawsuit against C.D. Peacock owner Seymour Holtzman and four of his employees in federal court in Illinois in February 2021, but the case was dismissed without prejudice in April.

In the initial lawsuit, Krajisnik claimed she was fired for being a whistleblower on the alleged conspiracy.

The suit included the names of two other terminated C.D. Peacock employees who also believe they were fired for notifying management of the situation and refusing to participate.

The new lawsuit, filed March 23 in the Circuit Court of Cook County in Illinois, reiterates these same claims and adds the two employees, Nelson and Di Lorenzo, as plaintiffs.

The defendants include C.D. Peacock, its location in the Old Orchard Mall, and Holtzman, who has since transferred ownership of the retailer to son Steven Holtzman.

Staffing and payroll company ADP and Tandem Professional Services have been added as defendants for their alleged roles in the firing of at least one of the former employees.

Illinois law allows for “respondents in discovery” to be named as well.  These respondents can be converted to defendants.

The respondents are Rolex Watch U.S.A. and Chad Adams, a Rolex regional sales representative, as well as former CDP CEO Robert Baumgardner, employee Yingxue Duan, and store managers Christopher Croteau and Dyol Hill.

While it is not illegal to violate Rolex policies or to sell watches on the gray market, the lawsuit claims the defendants violated numerous federal and state laws, including money laundering, mail fraud, wire fraud, immigration fraud, credit card fraud, and federal income tax evasion.

“Our clients allege they were fired from C.D. Peacock after they refused to take part in a far-reaching scheme that involved a litany of illegal activities committed in order to profit by getting this merchandise into the hands of foreign gray market resellers,” said Haskell Garfinkel of Garfinkel Group LLC, whose firm is one of two representing the plaintiffs.

The complaint outlines several instances of Duan allegedly engaging in illegal behavior and violating store and Rolex policies and details an alleged scheme by C.D. Peacock to sell Rolex watches directly into the Asian market.

Di Lorenzo, the former Rolex manager of C.D. Peacock’s store in the Old Orchard Mall, claims in the suit that Duan was “making remote sales of Rolex products, on the phone and online, to heretofore unknown customers,” and “regularly engaging in forging signatures on credit card receipts” to sign for customers who had never visited the store.  

Multiple watches also were being shipped out of state at one time to avoid sales taxes, also violating C.D. Peacock and Rolex policies, the suit alleges.

Krajisnik claimed in the suit that she friended Duan on Facebook and noticed she was posting Rolex products for sale in foreign countries, including on pages for jewelry resellers. 

The suit shares details of Duan’s public social media posts, translated from Mandarin into English, in which she is allegedly negotiating Rolex sales with customers.

In one she wrote, “Official price is $75,000. If you are interested, I can take more pictures,” and, “I can ask my boss and then apply for a discount. I work at an authorized Rolex dealer.”

In another conversation, Duan allegedly said, “If you need detailed pictures with detail, I can take it for you. I work at [an] overseas authorized Rolex authorized dealer. Shipped directly from the store with stickers.”

The lawsuit also details a meeting former CEO Baumgardner had in September 2019 with Adams, the Rolex regional sales rep, to “discuss material violations of the distribution agreement, including but not limited to Rolex’s uncovering of the prohibited sale and ‘gray market’ resale of products online by Duan and defendants.”

After this meeting, Baumgardner allegedly released a memo to management-level employees, reiterating the company’s commitment to Rolex’s sales policies.

 Related stories will be right here … 

According to the lawsuit, the former employees shared the above details with management, including Holtzman, Baumgardner and store managers Croteau and Hill.

After speaking with management, the employees were fired in retaliation, said the suit, adding “the basis of their firings was false and pretextual.”

As per the filing, Nelson claimed she was falsely accused of, and fired for, sexual harassment after saying a member of management she believed to be complicit in the alleged scheme was “in bed” with an employee.

Krajisnik was said to be fired for poor sales numbers, though she claimed her low numbers were the result of Rolex sales being given to Duan.

Di Lorenzo was fired because he extended credit to a customer whose driver’s license was set to expire a few months after the transaction, as per court documents.

In a statement to National Jeweler, a C.D. Peacock spokesperson described the employees as “disgruntled” and said they were terminated for cause.

“The case was previously brought by one of these employees a year ago in federal court and then immediately abandoned when early rulings went against her in that action,” the retailer said.

“CDP intends to vigorously defend this action, as it did the previous one.”

Another well-known luxury watch brand, Patek Philippe, was mentioned in the original complaint. The new lawsuit, however, does not include Patek Philippe.

As of Jan. 31, C.D. Peacock ended its 30-year partnership with Patek Philippe, a C.D. Peacock spokesperson confirmed to National Jeweler.

“Demand from our customers exceeds availability which, in turn, creates disappointment when we are not able to fill all client requests,” the company said. “We continue to explore partnerships with luxury brands that we will announce this year because satisfying our distinguished collectors remains a priority.”

C.D. Peacock was founded in Chicago in 1837, making it one of the city’s oldest retailers, and has three locations in Illinois, with a new flagship in the works.

The Latest

Coeur Percé Scapular Necklace and Love Baby Locket
CollectionsMay 09, 2025
Pieces of the Week: Marie Lichtenberg’s Collaborations for Mother’s Day

Lichtenberg partnered with luxury platform Mytheresa on two designs honoring the connection between mothers and daughters.

Gemfields emeralds
SourcingMay 09, 2025
Gemfields Resumes Emerald Mining in Zambia

The miner announced plans to recommence open-pit mining at Kagem.

Stock image of a man’s hands in handcuffs
CrimeMay 08, 2025
Former NYC Jewelry Store Employee Arrested in 2017 Choking Death of Boss

Michel Desalles allegedly murdered Omid Gholian inside World of Gold N Diamond using zip ties and then fled the country.

antique_Vegas_2024_by_headshot_stories_9454.jpg
Brought to you by
Las Vegas Antique Jewelry & Watch Show: Showcasing the Most Collectible Merchandise from Across the Globe

Gain access to the most exclusive and coveted antique pieces from trusted dealers during Las Vegas Jewelry Week.

2025 Met Gala jewelry
EditorsMay 08, 2025
5 ‘Superfine’ Met Gala Jewelry Moments

Associate Editor Lauren McLemore shares her favorite looks from a night of style inspired by Black dandyism.

Weekly QuizMay 08, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
instappraise-1.png
Supplier BulletinMay 08, 2025
Instappraise Introduces Game-Changing Trifold Appraisal Format

Sponsored by Instappraise

Brilliant Earth three stone Sabine diamond engagement ring
FinancialsMay 08, 2025
Brilliant Earth Notes an Uptick in Engagement Ring Sales in Q1

CEO Beth Gerstein discussed the company’s bridal bestsellers, the potential impact of tariffs, and the rising price of gold.

Supplier Spotlight -Recorded-Webinar.png
Brought to you by
Watch: The Winston Red: GIA Examines the Smithsonian’s Newest Addition

Supplier Spotlight Sponsored by GIA

Cathy Marsh
IndependentsMay 08, 2025
Verragio Announces New Regional Sales Manager

Cathy Marsh will lead the jewelry company’s efforts in the upper Midwest and western United States.

Pandora gold and silver charm bracelet
FinancialsMay 07, 2025
Pandora Posts Strong Q1, Plans for Tariffs

The company has multiple strategies for dealing with tariffs, though its CEO said moving manufacturing to the U.S. is not one of them.

Headshot of Smart Age Solutions CEO Emmanuel Raheb
ColumnistsMay 07, 2025
The Smart Lab: Building a Seasonal Marketing Strategy for Mother’s Day and Beyond

Connecting with your customers throughout the year is key to a successful holiday marketing push.

Gemfields rough emeralds
SourcingMay 07, 2025
Gemfields Says Emerald Sales Improved in Latest Auction

Its commercial-quality emerald sale held last month totaled more than $16 million, up from about $11 million in September 2024.

Logo for “In the Loupe,” Punchmark’s podcast
TechnologyMay 07, 2025
Punchmark’s Latest Podcast Features a Very Special Guest

National Jeweler Editor-in-Chief Michelle Graff joined Michael Burpoe to talk tariffs, consumer confidence, and the sky-high price of gold.

Harwell Godfrey Met Gala brooch with Mediterranean Blue diamond
AuctionsMay 06, 2025
Harwell Godfrey Reimagines 10-Carat Blue Diamond for Met Gala-Ready Brooch

Designer Lauren Harwell Godfrey made the piece as an homage to the 2025 gala’s theme, “Superfine: Tailoring Black Style.”

Jewelers of America 20 Under 40 for 2025
Events & AwardsMay 06, 2025
Here’s Who Made Jewelers of America’s New ‘20 Under 40’ List

Expanded this year to include suppliers, JA’s 2025 list honors 40 up-and-coming professionals in the jewelry industry.

Sissys Log Cabin Fort Smith Arkansas
IndependentsMay 06, 2025
Sissy's Log Cabin Opens New Store

Located in Fort Smith, it’s the Mid-South jeweler’s first store in Northwest Arkansas.

Gunderson’s Jewelers
IndependentsMay 06, 2025
Gunderson’s Jewelers to Be Featured on ‘World’s Greatest’ TV Series

The episode about the family-owned jeweler will premiere May 17.

Zadok Jewelers Austin store
IndependentsMay 05, 2025
Zadok Jewelers Opens Store in Austin

The Houston-based jeweler’s new 11,000-square-foot showroom will include a Rolex boutique.

Nancy Astor Cartier turquoise and diamond tiara
AuctionsMay 05, 2025
Nancy Astor’s Cartier Tiara Heads to Auction

The turquoise and diamond tiara hasn’t been on the market since it was purchased by Lord Astor in 1930.

David DeCook Crater of Diamonds State Park 3.81-carat brown Duke Diamond
SourcingMay 05, 2025
Crater of Diamonds Yields 4-Carat Brown Diamond

“The Duke Diamond” is the largest diamond registered at the Arkansas park so far this year.

Kraft Mac & Cheese x Ring Concierge Forever Macaroni Necklace
TrendsMay 02, 2025
Ring Concierge, Kraft Partner on Mother’s Day Macaroni Necklace

The childhood craft of making dried pasta necklaces for Mother’s Day is all grown up as the 14-karat gold “Forever Macaroni” necklace.

Angely Martinez emerald Promise ring
CollectionsMay 02, 2025
Piece of the Week: Angely Martinez’s Emerald Promise Ring

Set with May’s birthstone and featuring an earthworm, this ring is a perfect celebration of spring.

Stuller 2025-2026 bridal catalog
MajorsMay 02, 2025
Stuller’s New Bridal Catalog Is Here

“Bridal 2025–2026” includes popular styles and a dedicated section for quick pricing references of lab-grown diamond bridal jewelry.

Americut Gems
SourcingMay 01, 2025
Tariffs & Colored Gemstones: Relying on Stock, Considering the Ripple Effect

Though currently paused, high tariffs threaten many countries where gemstones are mined. Dealers are taking measures now to prepare.

Exterior of new David Yurman store in the Miami Design District
MajorsMay 01, 2025
Peek Inside David Yurman’s New Miami Flagship Store

Located in Miami’s Design District, the 4,000-square-foot store is an homage to David and Sybil Yurman’s artistic roots.

Oscar Heyman emerald and diamond necklace
TrendsMay 01, 2025
Amanda’s Style File: 20 Pieces of Emerald Jewelry for May

May babies are lucky indeed, born in a month awash with fresh colors and celebrated with one of the most coveted colored gemstones.

Jewelers of America logo
MajorsMay 01, 2025
Jewelers of America Opens Applications for 2025 Scholarships

The deadline to apply for the Seymour & Evelyn Holtzman Bench Scholarship is June 12.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy