PNB rip-off accuses Nirav Modi’s brother of being charged in New York with stealing $ 1 million in diamonds
Nehal Modi, a brother of PNB fraud accused jeweler Nirav Modi, who was also wanted by the CBI in the same case, was accused in the United States of defrauding a company with diamonds valued at over $ 1 million.
Mr. Modi allegedly “misrepresented” in obtaining the more than $ 2.6 million worth of gemstones from LLD Diamonds USA on favorable loan terms and shipments, and then liquidated them for his own use, as if from one Declaration from the Manhattan office dated Dec. 18, states District Attorney Cy Vance Junior. While he made some payments to LLD for the diamonds, he has used most of the proceeds from their liquidation for personal use, the statement said.
“Diamonds may be forever, but that flawed scheme wasn’t and now Mr. Modi will face the clarity of a New York Supreme Court indictment,” Cy Vance Junior said in the statement Friday.
Mr Modi, a resident of Antwerp, is brother Nirav Modi, the Belgian diamond dealer who was formerly Indian and known for his role in one of the biggest bank fraud cases in India in recent years, allegedly claiming $ 2 billion from the Punjab National Bank defrauded. Nehal Modi himself is wanted by the CBI in a PNB-related fraud case where he is number 27 charged with destroying evidence in Dubai to cover up the alleged crime.
The prosecutor’s statement announced that Nehal Modi would be charged. The defendant had reached out to LLD alleging that he had a relationship with Costco Wholesale Corporation and was looking for nearly $ 800,000 worth of diamonds to present to Costco for a possible sale.
He later lied to LLD that Costco had agreed to the deal and bought the diamonds on credit from LLD. However, Mr. Modi then mortgaged the diamonds in order to obtain a short-term loan, the statement said.
“Between April and May 2015, Modi returned to LLD three more times and took over $ 1 million worth of diamonds for alleged sales to Costco. Modi made a series of payments to LLD but used most of the proceeds on personal use and other purposes in order to cover his fraud, Modi falsely alleged that he had encountered payment problems due to a ‘Costco compliance failure’ and made repeated promises to cover the balance, “the statement said.
LLD eventually realized the fraud and requested immediate payment of the balance or the return of the diamonds. However, Mr. Modi had already sold or mortgaged all of them and spent most of the proceeds. LLD then reported the fraud to the Manhattan Attorney’s Office.
The New York Supreme Court has now charged him in the first degree with major theft.