MajorsJan 30, 2025
WJA Chapter Leaders Resign as Fallout From DEI Remarks SnowballsThe boards of at least five chapters have resigned in response to controversial statements the WJA national board president made last month.
IndependentsFeb 17, 2021
Chicago Rolex Dealer Accused of Racketeering in Lawsuit
A former employee has accused the owner and employees of C.D. Peacock of selling Rolex watches directly into the gray market and firing employees who blew the whistle on their activities.
C.D. Peacock, which operates three stores in the Chicago area, has been accused of selling Rolex watches to gray market resellers. (Image courtesy of C.D. Peacock’s website)
Chicago—A longtime Chicago jeweler and a number of his employees are being publicly accused in a lawsuit of conspiring to illegally sell Rolex watches to gray market resellers and firing employees who blew the whistle on the alleged scheme.
C.D. Peacock Inc., which has been in business since 1837, operates three stores in the Chicago area and is an authorized dealer of top watch brands including Rolex, Patek Philippe, Cartier and TAG Heuer.
Last week, a former C.D. Peacock employee, Suzana Krajisnik, filed suit against owner Seymour Holtzman and four of his employees in federal court in Illinois.
In the suit, Krajisnik claims she was fired in December 2019 for being a whistleblower on “a conspiracy by the defendants to illegally sell Rolex watches to foreign grey market resellers in order to enrich themselves” and “refusing to engage in flagrant illegal activity that violated state and federal law.”
Two other former C.D. Peacock employees, fired in June 2020 and January 2021, are named in the suit and back up her claims, stating they believe they were also fired for notifying management of the situation and refusing to participate.
In a statement to National Jeweler, a spokesperson for C.D. Peacock called Krajisnik’s claims “baseless.” The jeweler said Krajisnik was “terminated for cause” and it will vigorously defend itself against the suit’s “false accusations.”
C.D. Peacock also said it follows all distribution guidelines outlined by the brands it carries.
“In an industry where demand far exceeds supply for generational timepieces, we value transparency and accountability,” the company said. “We follow all guidelines to preserve our brand partnerships.”
Rolex did not respond to an email request for comment on the lawsuit.
The detailed 50-plus-page filing accuses Holtzman as well as CEO Robert Baumgardner, former employee Dyol Hill, and employees Christopher Croteau and Yingxue Duan of violating “numerous federal and state laws including but not limited to racketeering, money laundering, mail, wire, immigration, and credit card fraud, and Illinois sales tax evasion.”
The court filing outlines the guidelines authorized Rolex dealers must follow as part of the brand’s distribution agreement. The store also has its own policies in place to reinforce that agreement.
C.D. Peacock employees are told the most important policy to follow is that Rolex sales are to be made in person at the approved location, as per court documents. Selling by catalog, phone, online or by other means is prohibited.
The jeweler’s policy requires sales professionals to be wearing a Rolex timepiece and a Rolex scarf or tie while making Rolex sales, and protective stickers must be removed from watches sold in-store, a rule put in place specifically to avoid gray market sales.
C.D. Peacock Inc., which has been in business since 1837, operates three stores in the Chicago area and is an authorized dealer of top watch brands including Rolex, Patek Philippe, Cartier and TAG Heuer.
Last week, a former C.D. Peacock employee, Suzana Krajisnik, filed suit against owner Seymour Holtzman and four of his employees in federal court in Illinois.
In the suit, Krajisnik claims she was fired in December 2019 for being a whistleblower on “a conspiracy by the defendants to illegally sell Rolex watches to foreign grey market resellers in order to enrich themselves” and “refusing to engage in flagrant illegal activity that violated state and federal law.”
Two other former C.D. Peacock employees, fired in June 2020 and January 2021, are named in the suit and back up her claims, stating they believe they were also fired for notifying management of the situation and refusing to participate.
In a statement to National Jeweler, a spokesperson for C.D. Peacock called Krajisnik’s claims “baseless.” The jeweler said Krajisnik was “terminated for cause” and it will vigorously defend itself against the suit’s “false accusations.”
C.D. Peacock also said it follows all distribution guidelines outlined by the brands it carries.
“In an industry where demand far exceeds supply for generational timepieces, we value transparency and accountability,” the company said. “We follow all guidelines to preserve our brand partnerships.”
Rolex did not respond to an email request for comment on the lawsuit.
The detailed 50-plus-page filing accuses Holtzman as well as CEO Robert Baumgardner, former employee Dyol Hill, and employees Christopher Croteau and Yingxue Duan of violating “numerous federal and state laws including but not limited to racketeering, money laundering, mail, wire, immigration, and credit card fraud, and Illinois sales tax evasion.”
The court filing outlines the guidelines authorized Rolex dealers must follow as part of the brand’s distribution agreement. The store also has its own policies in place to reinforce that agreement.
C.D. Peacock employees are told the most important policy to follow is that Rolex sales are to be made in person at the approved location, as per court documents. Selling by catalog, phone, online or by other means is prohibited.
The jeweler’s policy requires sales professionals to be wearing a Rolex timepiece and a Rolex scarf or tie while making Rolex sales, and protective stickers must be removed from watches sold in-store, a rule put in place specifically to avoid gray market sales.
Editors' Picks
Sponsored by
According to the lawsuit, C.D. Peacock’s policy also prohibits the sale of limited availability models to unknown buyers, preferring to sell them instead to customers with a history of purchasing those types of watches in order to avoid them being resold online.
Newer employees were not allowed in the Rolex room and could not sell Rolex products until they were familiar with the brand and had an established client base, as per court documents.
The procedures above were followed, the lawsuit claims, until December 2018.
Two events that happened around that time set “the scheme” in motion, Krajisnik claims in the lawsuit: the hiring of a new employee, Duan, and a goal set by management for $10 million in sales.
Employees were told that if they reached the goal, Rolex would pay to remodel one of C.D Peacock’s stores, select executives would receive “substantial bonuses,” and Rolex would make additional high-demand watches available to CDP, the lawsuit claims.
Though Duan was a new employee, she began selling Rolex watches.
The filing details several instances of Duan allegedly engaging in illegal behavior and violating store and Rolex policies.
For example, the suit states that in late January or early February 2019, a typically slow period for the jeweler, one of the employees who was also fired noted that “the Rolex sales numbers were skyrocketing, and Duan, who had no established customer base and rarely, if ever, had in-store customers, was recording extraordinary Rolex sales.”
The employee discovered that “Duan was regularly engaging in forging signatures on credit card receipts”—to sign for customers who had never visited the store—and “making remote sales of Rolex products, whether on the phone or online, to heretofore unknown customers,” the suit states.
Multiple watches were allegedly being shipped out of state at one time, as per the court filing, to avoid sales taxes, also violating CDP and Rolex policies.
Krajisnik also claims in the lawsuit that she friended Duan on Facebook and noticed she was posting Rolex products for sale in foreign countries, including on pages for jewelry resellers. Both CDP and Rolex forbid online advertising and sale of Rolex products.
Though Rolex is mentioned most often in the filing, Krajisnik claims that several other luxury watch and jewelry brands, including Patek Philippe, may also be included in the alleged scheme.
Krajisnik is requesting a trial by jury to settle the matter and is asking for lost wages, back pay, damages, and attorneys’ fees.
The case was filed with the U.S. District Court for the Northern District of Illinois.
More on Independents
The Latest
Policies & IssuesJan 30, 2025
RJC Executive Director Melanie Grant Is Stepping Down An experienced jewelry writer and curator, Grant led the organization for two years.
CollectionsJan 30, 2025
Pharrell Williams Brings Tahitian Pearls to His New Tiffany & Co. CollectionFive new designs were added, all donning Tahitian cultured pearls and spear-like trident motifs, along with the new “Titan” setting.
Brought to you by
3 New Year’s Resolutions for Jewelry Lovers The new year feels like a clean slate, inspiring reflection, hope, and the motivation to become better versions of ourselves.
Events & AwardsJan 30, 2025
Registration Open for Converge 2025The inaugural event is being co-hosted by the American Gem Society and the Gemological Institute of America.
Weekly QuizJan 23, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
MajorsJan 30, 2025
24 Karat Club of New York Elects 5 New MembersJewelers of America’s Annie Doresca and AGTA CEO John W. Ford Sr. are among the new members.
CollectionsJan 29, 2025
Boucheron’s High Jewelry Takes the Form of ‘Untamed Nature’The jeweler’s latest high jewelry collection looks into the Boucheron archives to create a “living encyclopedia of high jewelry.”
Brought to you by
A Diamond Is Forever Celebrates "Forever Present" Holiday CampaignA Diamond is Forever hosted a holiday celebration in honor of their new marketing campaign, ‘Forever Present.’
FinancialsJan 29, 2025
LVMH Watch, Jewelry Sales End the Year DownWatch and jewelry sales slipped 3 percent in 2024, though the luxury conglomerate did see business pick up in the fourth quarter.
MajorsJan 29, 2025
Chanel Names New General Manager of Watches, Fine Jewelry for USOlivier Kessler-Gay will take over the role on March 3.
SurveysJan 29, 2025
Consumer Confidence Slips for Second Consecutive Month It hit a four-month low in January due to concerns about the job market, though consumers remain bullish about the stock market.
Events & AwardsJan 29, 2025
Chris Ploof To Teach Mokume Gane at AJSThe jewelry designer and master metalsmith will present on the ancient Japanese metalworking technique at the Atlanta Jewelry Show in March.
SourcingJan 28, 2025
WFDB Joins Efforts to Promote Natural Diamonds With New CampaignThe “Moments” social media campaign emphasizes the emotional ties between natural diamonds and life’s special milestones.
CollectionsJan 28, 2025
Bliss Lau Celebrates the Intricate Mosaic of Identity in New CollectionThe versatile “As We Are” collection features 14 pieces with interlocking designs allowing for 27 different looks worn around the body.
SourcingJan 28, 2025
Botswana’s First Olympic Gold Medalist Is Now a De Beers Ambassador Letsile Tebogo will help to promote natural diamonds and the good they have done for his country.
Events & AwardsJan 28, 2025
NouvelleBox Show Returns to New York CityThe showcase, in its second year, will feature more than 20 international brands at its curated event from Feb. 2-4.
Recorded WebinarsJan 28, 2025
Watch: Fine Jewelry Market Predictions for 2025 “My Next Question” guests Sherry Smith and Edahn Golan share their 2025 forecasts, from sales and marketing to what retailers should stock.
Events & AwardsJan 28, 2025
Here Is the 2025 AGTA GemFair Tucson Educational LineupThe seminar series covers topics from market trends and colored stone terminology to working with museums and growing an Instagram profile.
MajorsJan 27, 2025
Le Vian Corp. Chairman Larry LeVian, a Man of Faith and Family, Dies at 73 LeVian is remembered for his leadership in the jewelry industry and for being a selfless and compassionate person.
CrimeJan 27, 2025
New Jersey Jeweler Sentenced to 2 1/2 Years for Evading CustomsMonishkumar Kirankumar Doshi Shah pleaded guilty to evading customs on more than $13.5 million of jewelry imported into the U.S.
SourcingJan 27, 2025
Dev Shetty To Head New Auction House for Rare Colored GemsJemora Gemhouse’s inaugural auction, slated for March, will take place in Dubai and feature polished sapphires.
CollectionsJan 27, 2025
Rachel Quinn Embodies Feelings of Falling in Love in New CollectionQuinn partnered with Gemfields to create “Crazy Love,” which features Zambian emeralds and Mozambican rubies across 10 pieces.
MajorsJan 27, 2025
Arch Crown’s 2025 ‘Tag & Label’ Catalog Is Out Now The catalog is 48 pages and features more than 100 styles.
CollectionsJan 24, 2025
Piece of the Week: Ashley Zhang Jewelry’s Lunar New Year NecklaceThe one-of-a-kind necklace was designed in celebration of the Chinese New Year, as 2025 is the Year of the Snake.
SourcingJan 24, 2025
Ethical Gem Fair Heads Back to Tucson The gemstone show is slated to take place at the Scottish Rite Cathedral.
Policies & IssuesJan 24, 2025
These Designers and Retailers Are Raising Money for LA Wildfire Relief From raffles to auctions to donations, the industry is working to aid charities in Los Angeles amid the raging wildfires.
CrimeJan 23, 2025
4 Men Arrested After Allegedly Plotting to Kidnap JewelerThe suspects are accused of planning to kidnap a Miami jeweler and rob him of his cryptocurrency.
