Nirav Modi's brother Nehal charged with stealing over $1 million in diamonds
First Published Dec 20, 2020, 3:08 PM IST
Nehal Modi, brother of PNB fraud-accused jeweller Nirav Modi and who is also wanted by the CBI in the same case, has been charged in the United States for fraudulently obtaining over $2.6 million worth of diamonds from a diamond wholesale company located in Manhattan
In a statement, District Attorney Cyrus Vance Junior said: "As alleged, Modi conned a Manhattan diamond wholesaler into fronting him millions worth of diamonds for a purported deal with Costco that never existed."
"While diamonds may be 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."
According to the Nehal's indictment report, Nehal Modi was initially introduced to the president of LLD through industry associates. In March 2015, Modi approached LLD, claimed that he was pursuing a relationship with Costco Wholesale Corporation, and asked LLD to provide several diamonds, worth nearly $800,000, to present to Costco for a potential sale.
"After LLD provided the diamonds, Nehal Modi falsely informed the company that Costco had agreed to purchase them. Subsequently, LLD allowed the defendant to purchase the diamonds on credit, with full payment required within 90 days. Modi then pawned the diamonds at Modell Collateral Loans, Inc to secure a short-term loan."
Between April and May 2015, Nehal Modi returned to LLD three additional times and took more than $1 million worth of diamonds for purported sales to Costco, the indictment further noted, adding, "He made a series of payments to LLD, but used the majority of the proceeds for personal use and other business expenses. To cover his fraud, he falsely claimed that he was encountering payment issues due to a 'Costco fulfillment error' and made repeated promises to satisfy the balance."
"LLD ultimately uncovered the fraud and demanded that Nehal Modi immediately pay his outstanding balance or return the diamonds. However, the defendant had already sold or pawned all of the diamonds and spent most of those proceeds. LLD subsequently reported the fraud to the Manhattan D.A.’s Office."
The New York Supreme Court has now indicted him with grand larceny in the first degree.
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