Partner in Kaka'ako firm arrested

By Dan Nakaso
Advertiser Staff Writer

J.P. Germain, owner of International Collectibles Inc. in Kaka'ako, says he was scammed by a man who offered to buy the high-end furniture store, then disappeared after borrowing thousands of dollars. Deborah Booker • The Honolulu Advertiser

He offered to buy J.P. Germain's furniture store in Kaka'ako for $225,000, and offered collateral in the form of $309,000 in jewelry he said he had inherited. He spent three months learning the ins and outs of Germain's business, borrowed thousands of dollars, then stopped showing up at International Collectibles Inc. on Waimanu Street in late January.

When he resurfaced last week, Daswani was in the custody of the FBI in Honolulu, accused of bilking Australian businesses out of $2.9 million before he arrived in Hawai'i.

Germain says his trust was betrayed. But he also says he's lucky he might be out only about $6,000 — including hundreds of dollars worth of cell-phone charges to Jamaica and Australia.

Daswani, 49, is in custody at the federal detention center, awaiting possible extradition to Australia. He was ordered detained Feb. 5; the Australian government has 60 days to send extradition documents to the State Department.

Daswani, who goes by the nickname Lux, was attempting to renew his passport Feb. 3 when he was arrested by Federal Bureau of Investigation agents at the Honolulu Passport Agency in the federal building.

Daswani's attorney could not be reached for comment yesterday.

In June, an arrest warrant was issued for Daswani in U.S. District Court for the Southern District of Florida. The Stipendiary Magistrate's Office in Australia had issued an arrest warrant alleging Daswani "did ... dishonestly induce" four financial institutions out of $2.9 million.

Five months later, Daswani and his wife, Adriana, showed up at Germain's jewelry and furniture store draped in designer clothes and jewelry. They said they had come from Australia and were living in a friend's condominium at the 'Ilikai hotel.

Adriana Daswani said she was an interior decorator and liked Germain's stock of ornate European-designed furniture. Lux Daswani offered to buy the store — half in cash, half in diamond and 18-karat gold jewelry, including an $85,000 Chopard watch and a $141,500 necklace.

Germain wanted to keep the jewelry side of the operation and would sell only a 75 percent stake in the furniture store. They agreed the jewelry — which Germain appraised at nearly $310,000 — would be held as collateral until Daswani's brother delivered some $1.5 million to Hawai'i.

"I was suspicious," Germain said. "I kept saying, 'Do you have any paperwork for the jewelry?' He said, 'Yeah, yeah. I find something later.' All the time, he kept saying, 'Don't worry, don't worry. My brother's going to bring me money.' "

During the next three months, Daswani worked without salary as he loaded and unloaded furniture in his designer clothes, made deliveries and scribbled meticulous details in a notebook. He occasionally showed up with two young children and said he had two older children, including a daughter who worked at the Hilton Hawaiian Village.

Daswani and Germain prepared for the eventual transfer of the business by setting up a joint bank account to keep the furniture transactions separate from the jewelry business, Germain said. Germain also gave Daswani the keys to the store and a cell phone.

"It was a sign of good faith," Germain said.

On Christmas Eve, Germain returned from a trip to discover Daswani had withdrawn $2,600 from their joint account in four separate transactions.

Daswani told Germain his family wanted the jewelry back and he needed the money to hire an attorney and have the jewelry photographed to show it was still in his possession. Daswani promised to repay the account when his brother arrived four days later with the $1.5 million, Germain said.

By late January, the account had not been repaid, and Germain closed it. Then Daswani said he needed to take the jewelry again and borrowed $2,500.

"He said, 'When I get my million dollars, I'll pay you back,'" Germain said. "I never heard from him again."

Germain canceled the cell phone and began calling the numbers listed on the bill. One person who answered in Australia said Daswani was in trouble there.

"It seemed rather strange," Germain said. "This person would always be wearing Versace and Gucci and flashing all of this expensive jewelry, but was always borrowing money."

Reach Dan Nakaso at 525-8085 or dnakaso@honoluluadvertiser.com.