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 largest diamond corporations in Manhattan.
Nehal, 41, is charged in a New York Supreme Courtroom indictment with Grand Larceny within the First Diploma, Manhattan District Legal professional Cy Vance, Jr. stated.
“Whereas diamonds possibly perpetually, this flawed scheme was not, and now Modi will face the readability of a New York Supreme Courtroom indictment. My Workplace is not going to enable people who’ve the privilege of soliciting enterprise in Manhattan’s iconic diamond trade to defraud our companies or customers,” Vance stated in a assertion on Friday.
In accordance with 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 widely known household within the diamond trade”, was initially launched to the president of LLD Diamonds by means of trade associates.
In March 2015, he approached LLD, claimed that he was pursuing a relationship with Costco Wholesale Company and requested the New York-based diamond firm to supply a number of diamonds, value practically USD 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 fee required inside 90 days. He then pawned the diamonds at Modell Collateral Loans to safe a short-term mortgage, the Manhattan District Legal professional’s workplace stated.
Between April and Could 2015, Nehal returned to LLD three further occasions and took greater than USD 1 million value of diamonds for purported gross sales to Costco. He made a collection of funds to LLD, however used nearly all of the proceeds for private use and different enterprise bills.
To cowl his fraud, Nehal falsely claimed that he was encountering fee points resulting from a “Costco achievement 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 fee upfront within the occasion of a sale, as Nehal’s excellent stability was practically USD 1 million at the moment.
Nehal had already contacted Modell to rearrange an extra mortgage. After selecting up the diamonds from LLD, he pawned nearly all 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 worth.
LLD finally uncovered the fraud and demanded that he instantly pay his excellent stability or return the diamonds. Nevertheless, he had already bought or pawned all the diamonds and spent most of these proceeds. LLD subsequently reported the fraud to the Manhattan DA’s Workplace.
Nehal’s brother Nirav, 49, is needed in India on costs of fraud and cash laundering within the estimated USD 2-billion Punjab Nationwide Financial institution (PNB) rip-off case. He stays at Wandsworth Jail in south-west London the place he has been lodged since his arrest in March final yr.
The Interpol has issued a Pink Nook Discover (RCN) in opposition to Nehal on costs 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 akin to English, Gujarati and Hindi, based on the RCN issued by Interpol.
The New York Publish quoted Nehal’s protection lawyer Roger Bernstein as saying: “This can be a business dispute” and that “Nehal is just not responsible.” A video on The Publish web site exhibits Nehal strolling with Bernstein, who stated “we aren’t discussing something in regards to the case” when requested in regards to the Interpol discover.