Nehal Modi, the younger brother of fugitive diamantaire Nirav Modi, has been indicted in New York for fraudulently obtaining diamonds worth over USD 2.6 million (Rs 19,13,78,460) from one of the world’s biggest diamond companies in Manhattan.
The 41-year-old has been charged with Grand Larceny in the First Degree in New York Supreme Court, as stated by Cy Vance Jr, Manhattan District Attorney.
The attorney said that while the diamonds maybe forever, this flawed scheme was not, and now Nirav will face the clarity of a New York Supreme Court indictment. He added that his office will not allow individuals who have the privilege of soliciting business in Manhattan’s iconic diamond industry to defraud its businesses or consumers.
Allegedly, Nirav made “false representations” to obtain more than $2.6 million worth of gems from LLD Diamonds USA on favourable credit terms and consignment. Nirav then liquidated those for his own ends as stated by the attorney, Vance Jr.
The brother of Nirav Modi, Nehal is a resident of Antwerp. Nirav, who is a Belgian diamond trader, was formerly an Indian and is infamous for his role in one of India’s biggest bank fraud cases in recent years. He allegedly swindled $2 billion from PNB- Punjab National Bank and is wanted by the CBI. He is charged with destroying evidence in Dubai to cover his tracks.
According to the press statement by the attorney, Nehal had approached LLD claiming that he was pursuing a relationship with Costco Wholesale Corporation. He then sought diamonds worth approximately $800,000 to present to Costco for a potential sale. The accused then lied to LLD that Costco had agreed to the deal and purchased the diamonds on credit from LLD. Meanwhile, Nirav pawned the diamonds to secure a short-term loan.
“Between April and May 2015, Modi returned to LLD three additional times and took more than $1 million worth of diamonds for purported sales to Costco. Modi 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, Modi falsely claimed that he was encountering payment issues due to a ‘Costco fulfillment error’ and made repeated promises to satisfy the balance,” the statement said.
Finally realising the fraud, LLD demanded immediate payment of the balance or the return of the diamonds, but Nirav had already sold or pawned off the diamonds and also went on to spend most of the proceeds.