Nehal Modi, brother of fugitive diamantaire Nirav Modi, has been charged in an alleged $2.6 million fraud case in New York. Nehal Modi has been charged by a New York prosecutor for allegedly defrauding one of many world’s greatest diamond corporations, LLD Diamonds, of $2.6 million by fraudulently acquiring its diamonds.
Manhattan District Legal professional Cy Vance, Jr, on December 18, introduced the indictment of Nehal Modi, 41, for fraudulently acquiring over $2.6 million value of diamonds from a diamond wholesale firm situated in Manhattan. Nehal Modi is charged in a New York Supreme Court docket indictment with Grand Larceny within the First Diploma.
“As alleged, Mr Modi [Nehal modi] conned a Manhattan diamond wholesaler into fronting him tens of millions value of diamonds for a purported cope with Costco that by no means existed,” stated District Legal professional Vance.
“Whereas diamonds possibly without end, this flawed scheme was not, and now Mr. Modi will face the readability of a New York Supreme Court docket indictment. My Workplace won’t permit people who’ve the privilege of soliciting enterprise in Manhattan’s iconic diamond business to defraud our companies or customers,” added District Legal professional Vance.
False representations to acquire over $2.6 million value of diamonds
In line with the indictment, court docket filings, and statements made on the document in court docket, between March 2015 and August 2015, Nehal Modi, a former member of Noble Titan Holdings, LLC, made false representations to acquire over $2.6 million value of diamonds from LLD Diamonds USA, LLC (“LLD”) on favorable credit score phrases and consignment, after which liquidated the diamonds for his personal ends.
Nehal Modi used his clout within the diamond business to impress the diamond firm. In March 2015, Nehal Modi approached LLD, claimed that he was pursuing a relationship with Costco Wholesale Company (“Costco”), and requested LLD to supply a number of diamonds, value almost $800,000, to current to Costco for a possible sale.
“After LLD offered the diamonds, Nehal Modi falsely knowledgeable the corporate that Costco had agreed to buy them. Subsequently, LLD allowed the defendant to buy the diamonds on credit score, with full cost required inside 90 days. Nehal Modi then pawned the diamonds at Modell Collateral Loans, Inc. (“Modell”) to safe a short-term mortgage,” stated the court docket.
How Nehal Modi coated his fraud
India At present TV has learnt that between April and Could 2015, Nehal Modi returned to LLD three further occasions and took greater than $1 million value of diamonds for purported gross sales to Costco. Modi made a collection of funds to LLD however used the vast majority of the proceeds for private use and different enterprise bills.
To cowl his fraud, Nehal Modi allegedly claimed that he was encountering cost points on account of a “Costco achievement error” and made repeated guarantees to fulfill the steadiness.
In August 2015, Nehal Modi returned to LLD once more and claimed that Costco wished to buy further diamonds. This time, LLD permitted Modi 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 within the occasion of a sale, as Nehal Modi’s excellent steadiness was almost $1 million at the moment.
In the meantime, Nehal had already contacted Modell to rearrange an extra mortgage. After selecting up the diamonds from LLD, MODI pawned the vast majority of the diamonds at Modell to safe two separate loans and bought the rest of the diamonds to varied retailers at a steep low cost from the listed consignment value.
“LLD in the end uncovered the fraud and demanded that Modi instantly pay his excellent steadiness or return the diamonds. Nonetheless, Nehal Modi had already bought or pawned all the diamonds and spent most of these proceeds. LLD subsequently reported the fraud to the Manhattan D.A.’s Workplace,” stated the court docket.
New York Police Division’s (NYPD) Main Case Squad is helping within the investigation of the case towards Nehal Modi.