The glittering world of high-end personal shopping at Saks Fifth Avenue has been rocked by a major scandal. A top stylist in Boston, Suhail Kwatra, is facing criminal charges for an alleged fraud scheme totaling over $400,000. Shockingly, court documents and client interviews reveal that several wealthy patrons had raised red flags about his conduct for nearly a decade before any action was taken.
A Decade of Unheeded Warnings
The case unraveled in late September 2024 when Saks security received a tip, leading to an internal probe and Kwatra's termination. In December, the Boston Police Department filed a criminal complaint alleging fraud and larceny. The complaint details three specific incidents in September and November where Kwatra allegedly processed fraudulent refunds worth over $11,000. The money was reportedly transferred to store gift cards, which were then used to buy merchandise.
However, the problem appears far more extensive and long-standing. Zach Haroutunian, now a private investment manager, was a student in Boston when he became a client and friend of Kwatra around 2014. About three years into their relationship, he noticed unauthorized charges on his credit card for items he never bought. "I raised very clear red flags, and they did nothing," Haroutunian stated, explaining that he confronted Kwatra, complained to store management, and even emailed Saks Global CEO Marc Metrick, with no substantive response.
Kwatra's spokesman, Joe Baerlein, dismissed Haroutunian's claims, calling him an "out-of-control impulse shopper." A Saks Global spokeswoman said the company takes allegations seriously but noted that Metrick may not respond to all complaints directly, though escalated issues are addressed.
Yacht Parties, Phantom Perfumes, and Exploited Trust
The Wall Street Journal spoke with six current and former clients who allege losses totaling thousands of dollars due to Kwatra's mismanagement of purchases and returns, with reports to Saks dating back to 2013.
Amber D'Amelio, an animal-rights activist, met Kwatra in 2011. Their relationship grew so close she hosted a birthday party for him on her yacht. Yet, by 2013, she noticed mysterious charges on her account. Kwatra would refund them initially, but the pattern continued until she complained to a store manager, who issued refunds for thousands. "I don't know if I was truly made whole," D'Amelio said.
In a particularly troubling account, Kwatra was accused of exploiting Wendy Appel, a client who suffered strokes and was later diagnosed with dementia. People familiar with the situation claim Kwatra charged millions in designer goods to her account, including Chanel suits and a $65,000 Louis Vuitton alligator handbag, which often sat unpicked in the store's backroom before being returned. Her son, Michael Appel, sent a cease-and-desist letter to Saks in 2016. Saks stated it investigated and found no wrongdoing, agreeing to some returns as a "courtesy."
Former Saks stylist Lisa Amato described a cutthroat environment. She recalled seeing dozens of unsold Jimmy Choo perfume bottles in Kwatra's section during a promotion, suggesting "phantom transactions" to earn gift card incentives. When she questioned a manager, she was told, "You have to go along to get along."
Denials, Duress, and a Struggling Retail Giant
Kwatra, 43, known as Boston's "Fashion Whisperer," dressed the city's elite for two decades. He has denied all allegations. In a statement, he claimed the police report was retaliation for him considering a job with a competitor. His attorney, Jennifer Furey, said a letter provided to police—where Kwatra estimated losses at over $400,000 and promised repayment—was signed under duress after false promises of no criminal action.
Furey also argued that Kwatra's supervisors condoned his use of gift cards and perks to retain clients, all for Saks's benefit. Saks declined to comment on these statements.
The scandal casts a harsh light on Saks's internal controls and customer complaint mechanisms. The retailer, one of America's last luxury department store chains, is already under financial strain. It has missed payments to suppliers, some of whom have halted shipments, and faces a significant interest payment due at the end of December.
This is not Saks's first brush with such issues. In 2017, a Saks clerk pleaded guilty to petty larceny after processing fake returns worth over $50,000. The current controversy underscores the high-pressure, commission-driven world of luxury retail, where top stylists can earn several hundred thousand dollars a year. For clients like Zach Haroutunian, the fallout is personal. "I thought my relationship with Suhail would go on for years," he lamented. "I never thought it would have ended like this."
