Privé Porter Insider Report: New Details Emerge in the Hermès Somerset Scandal

Background

Following our initial coverage of Moubarak v. Hermès Inc. — filed in the Michigan Circuit Court, Wayne County — new information has surfaced revealing the broader context and background of alleged misconduct at the Hermès Somerset boutique in Troy, Michigan.

According to multiple clients and insiders, this location has experienced management controversies before, including prior terminations tied to improper bag allocations.

A Troubled History at Somerset

As shown in messages shared by longtime Hermès clients, this isn’t the first time the Somerset store has been under scrutiny.

Previous management was reportedly terminated after the store manager allocated quota bags to fake customers, including her own spouse.

After that dismissal, Balal Chaudhry — formerly a sales associate at Gucci — was hired as assistant manager. He was born and raised in the area and was reportedly brought in alongside his superior, also a Michigan native who had previously worked at Hermès Palm Beach before being reassigned to Michigan following the earlier firings.

What the Lawsuit Alleges

According to individuals familiar with the ongoing case:

Some of the victims did not receive counterfeit bags. Instead, they allegedly made large deposits or full prepayments for Hermès bags that were never delivered.
Many of the victims reportedly received fake bags. One was identified after a 25 cm Birkin brought in for repair at Hermès Madison Avenue was quickly confirmed as counterfeit by the in-house craftsman.
The plaintiff’s attorney, who filed the lawsuit, is also reportedly a victim himself.

Pattern of Deception

The lawsuit, Moubarak v. Hermès Inc., names Balal Chaudhry, Daniyal Chaudhry, and Hermès Inc. as defendants.

The claims center on a fraudulent sales scheme that allegedly targeted clients seeking to bypass the boutique’s rigid spending system.

Balal targeted clients who were both personal friends and regular Hermès shoppers who didn’t want to participate in the so-called “pay-to-pay” spending system.
He allegedly convinced buyers that he had access to an “employee portal” offering select bags at a discount. In reality, the employee portal never offers quota bags.
Payments were reportedly sent via Zelle to a family member, now named as a co-defendant. Sources allege that this relative handled the incoming funds, most of which were lost to Balal’s severe gambling habit.

The Aftermath

Once a victim confronted Balal with evidence that their bag was fake, he resigned abruptly — days before the scandal surfaced publicly. Reportedly, before the scheme unraveled, Balal was on track for a promotion to store manager at Hermés Chicago.

As of now, no criminal charges have been filed, though sources indicate that victims may pursue this avenue if civil restitution fails.

The alleged motive? Gambling debts and greed. All available funds appear to have been dissipated, leaving victims facing financial losses and legal uncertainty.

Case Status

According to court records obtained this morning, Moubarak v. Hermès Inc. (Case No. 25-015323-CB, Michigan Circuit Court, Wayne County) was formally dismissed on October 28, 2025.

An email from the clerk’s office confirms that the Order of Dismissal has been signed and filed, closing the case at this stage.

However, attorney Koro Khamo, who represents several other alleged victims, has confirmed that a new complaint is being prepared for refiling.

Legal Disclaimer

All statements herein are based on information allegedly reported by third parties and publicly available legal filings as of October 2025.

The individuals named are presumed innocent until proven otherwise.

Privé Porter provides this report solely for informational purposes to promote consumer protection within the luxury goods sector.