Nehal Modi, the brother of the jeweler Nirav Modi, who was accused of fraud by PNB and wanted by the CBI in this case, was charged with fraud worth $ 1 million in diamonds in the United States.
Nehal Modi made “false claims” to obtain 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 purposes, according to a statement from Manhattan District Attorney.
“Mr Modi is alleged to have got a Manhattan diamond wholesaler to bring him millions of dollars in diamonds for an alleged deal with Costco that never existed. 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, “Manhattan District Attorney Cy Vance was quoted as saying in the statement.
According to a statement, Nehal Modi misrepresented in 2015 to obtain diamonds valued at over $ 2.6 million from LLD Diamonds, USA, on favorable loan terms and on favorable shipment, and then liquidated the diamonds for his own purposes.
Nehal Modi, a resident of Belgium, is the brother of Nirav Modi, the diamond dealer who was one of the defendants in a bank fraud case in which he allegedly defrauded $ 2 billion from the Punjab National Bank, an NDTV report said .
Nehal Modi himself is wanted by the CBI in the PNB fraud case and accused of destroying evidence in Dubai to cover up the traces of the alleged crime.
“Between April and May 2015, MODI returned to LLD three more times, picking up more than $ 1 million in diamonds for alleged sales to Costco. Modi made a number of payments to LLD but used most of the proceeds for personal use and other business expenses, ”the statement said.
To cover up his fraud, Nehal Modi falsely claimed he encountered payment problems due to a mistake and made repeated promises to try to keep the balance, the statement adds.
He is now being indicted in a New York Supreme Court indictment against Grand Larceny in the first degree. Interpol has issued a Red Corner Notice (RCN) against Nehal for alleged money laundering that is being investigated by the enforcement agency. Nehal was born in Antwerp, Belgium, in 1979 and, according to Interpol’s RCN, knows languages such as English, Gujarati and Hindi.
The New York Post quoted Nehal’s defense attorney Roger Bernstein as saying, “This is a trade dispute” and “Nehal is not guilty”. A video on the Post’s website shows Nehal walking with Bernstein, who said “we are not discussing the case” when asked about the Interpol announcement.