Nirav Modi’s brother Nehal charged with committing $2.6 million fraud in New York
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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
Nehal Modi, the youthful brother of fugitive diamantaire Nirav Modi, has been indicted right here for fraudulently acquiring diamonds price over $2.6 million from one of many world’s largest 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,” Mr. Vance stated in an announcement on Friday.
According to the indictment, court docket filings, and statements made on the report in court docket, between March 2015 and August 2015, Nehal, a former member of Noble Titan Holdings, made false representations to acquire over $2.6 million price 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 trade 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 firm to offer a number of diamonds, price almost $800,000, to current to Costco for a possible sale.
After LLD offered the diamonds, Nehal falsely knowledgeable the corporate 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 workplace stated.
Between April and May 2015, Nehal returned to LLD three extra occasions and took greater than $1 million price of diamonds for purported gross sales to Costco. He made a sequence of funds to LLD, however used the vast majority of the proceeds for private use and different enterprise bills.
To cowl 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 steadiness, the assertion famous.
In August 2015, Nehal returned to LLD once more and falsely claimed that Costco needed to buy extra 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 steadiness was almost $1 million at the moment.
Nehal had already contacted Modell to rearrange an extra mortgage. After choosing up the diamonds from LLD, he pawned the vast majority of the diamonds at Modell to safe two separate loans and bought the rest of the diamonds to numerous retailers at a steep low cost from the listed consignment value.
LLD finally uncovered the fraud and demanded that he instantly pay his excellent steadiness or return the diamonds. However, he had already bought 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 cash laundering in the estimated $2-billion Punjab National Bank (PNB) rip-off case. He stays at Wandsworth Prison in south-west London the place he has been lodged since his arrest in March final 12 months.
The Interpol has issued a Red Corner Notice (RCN) in opposition to Nehal on prices of alleged cash laundering that’s being probed by the Enforcement Directorate. Nehal was born in Antwerp, Belgium in 1979, and he is aware of languages comparable to English, Gujarati and Hindi, in accordance with 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 concerning the Interpol discover.
