Nehal Modi, the youthful brother of fugitive diamantaire Nirav Modi, has been indicted right here for fraudulently acquiring diamonds value over USD 2.6 million from one of many world’s greatest diamond firms in Manhattan.
Nehal, 41, is charged in a New York Supreme Court indictment with Grand Larceny in the First Degree, Manhattan District Attorney Cy Vance, Jr. stated.
“While diamonds maybe forever, this flawed scheme was not, and now Modi will face the clarity of a New York Supreme Court indictment. My Office will not allow individuals who have the privilege of soliciting business in Manhattan’s iconic diamond industry to defraud our businesses or consumers,” Vance stated in a assertion on Friday.
According to the indictment, courtroom filings, and statements made on the report in courtroom, between March 2015 and August 2015, Nehal, a former member of Noble Titan Holdings, made false representations to acquire over USD 2.6 million value of diamonds from LLD Diamonds USA on beneficial credit score phrases and consignment, after which liquidated the diamonds for his personal ends.
The assertion stated that Nehal, “who comes from a well-known family in the diamond industry”, was initially launched to the president of LLD Diamonds by way of business associates.
In March 2015, he approached LLD, claimed that he was pursuing a relationship with Costco Wholesale Corporation and requested the New York-based diamond company to supply a number of diamonds, value almost USD 800,000, to current to Costco for a possible sale.
After LLD offered the diamonds, Nehal falsely knowledgeable the company that Costco had agreed to buy them. Subsequently, LLD allowed him to buy the diamonds on credit score, with full cost required inside 90 days. He then pawned the diamonds at Modell Collateral Loans to safe a short-term mortgage, the Manhattan District Attorney’s office stated.
Between April and May 2015, Nehal returned to LLD three further instances and took greater than USD 1 million value of diamonds for purported gross sales to Costco. He made a sequence of funds to LLD, however used nearly all of the proceeds for personal use and different business bills.
To cover his fraud, Nehal falsely claimed that he was encountering cost points on account of a “Costco fulfillment error” and made repeated guarantees to fulfill the stability, the assertion famous.
In August 2015, Nehal returned to LLD once more and falsely claimed that Costco needed to buy further diamonds. This time, LLD permitted him to take the extra diamonds on consignment, with phrases explicitly stating that he didn’t have the authority to promote the diamonds with out authorisation by LLD.
LLD additionally required a partial cost upfront in the occasion of a sale, as Nehal’s excellent stability was almost USD 1 million at the moment.
Nehal had already contacted Modell to rearrange a further mortgage. After selecting up the diamonds from LLD, he pawned nearly all of the diamonds at Modell to safe two separate loans and offered the rest of the diamonds to varied retailers at a steep low cost from the listed consignment value.
LLD finally uncovered the fraud and demanded that he instantly pay his excellent stability or return the diamonds. However, he had already offered or pawned the entire diamonds and spent most of these proceeds. LLD subsequently reported the fraud to the Manhattan DA’s Office.
Nehal’s brother Nirav, 49, is needed in India on prices of fraud and money laundering in the estimated USD 2-billion Punjab National Bank (PNB) scam case. He stays at Wandsworth Prison in south-west London the place he has been lodged since his arrest in March final yr.
The Interpol has issued a Red Corner Notice (RCN) in opposition to Nehal on prices of alleged money laundering that’s being probed by the Enforcement Directorate. Nehal was born in Antwerp, Belgium in 1979, and he is aware of languages akin to English, Gujarati and Hindi, based on the RCN issued by Interpol.
The New York Post quoted Nehal’s protection lawyer Roger Bernstein as saying: “This is a commercial dispute” and that “Nehal is not guilty.” A video on The Post web site exhibits Nehal strolling with Bernstein, who stated “we are not discussing anything about the case” when requested in regards to the Interpol discover.
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