The former owner of luxury jeweler Fred Leighton who was once a major donor to New York's American Folk Art Museum, Ralph O. Esmerian, was sentenced on July 22 to 6 years in federal prison for wire fraud, bankruptcy fraud, and other charges.

He is accused of double-pledging tens of millions of dollars in collateral to get $210 million in loans to buy and operate the jewelry retailer.

Esmerian used at least $217 million in loans from Merrill Lynch Mortgage Capital Inc., Acorn Capital Group LLC and other sources in order to purchase Fred Leighton and then allegedly embazzled jewelry after he made the company file for bankruptcy.

Esmerian, 71, also was ordered to forfeit $20 million and do 1,800 hours of community service by U.S. District Judge Denise Cote who told Esmerian he had "lived a life of fraud and deceit on a massive scale."

"Ralph Esmerian tried to game the financial system and the bankruptcy process for years to finance his businesses," Manhattan District Attorney Preet Bharara said. "As a result of his frauds, the lenders who trusted him have lost tens of millions of dollars."