PNB fraud charged Nirav Modi’s brother, Nehal, with a $ 2.6 million charge in New York

From: PTI | New York |

Updated: December 20, 2020, 7:26:09 pm





Nehal, 41, is facing indictment in a New York Supreme Court indictment against Grand Larceny in the first degree, said Manhattan District Attorney Cy Vance, Jr.

Nehal Modi, the younger brother of the fugitive diamond Nirav Modi, was charged here with fraudulently obtaining over $ 2.6 million in diamonds from one of the world’s largest diamond companies in Manhattan.

Nehal, 41, is facing indictment in a New York Supreme Court indictment against Grand Larceny in the first degree, said Manhattan District Attorney Cy Vance, Jr.

“While diamonds may have been forever, this flawed scheme was not, and now Modi will face a New York Supreme Court indictment of clarity. My office will not allow individuals privileged to do business in Manhattan’s legendary diamond industry to defraud our businesses or consumers, ”Vance said in a statement Friday.

According to the indictment, court records, and testimony made in court between March 2015 and August 2015, Nehal, a former member of Noble Titan Holdings, made false claims about over $ 2.6 million worth of diamonds from LLD Diamonds USA obtained favorable loan terms and shipments and then liquidated the diamonds for its own use.

The statement said that Nehal, “who comes from a well-known family in the diamond industry,” was first introduced to the president of LLD Diamonds through industry partners.

In March 2015, he reached out to LLD claiming he had a relationship with Costco Wholesale Corporation and asking the New York-based diamond company to provide several diamonds valued at nearly $ 800,000 for Costco for a possible sale present.

After LLD provided the diamonds, Nehal falsely informed the company that Costco had agreed to purchase these diamonds. LLD then allowed him to purchase the diamonds on credit, requiring full payment within 90 days. He then pledged the diamonds to Modell Collateral Loans for a short-term loan, the Manhattan Attorney’s Office said.

Between April and May 2015, Nehal returned to LLD three more times, taking over $ 1 million worth of diamonds for alleged sales to Costco. He made a number of payments to LLD but used most of the proceeds for personal use and other business expenses.

To cover up his fraud, Nehal falsely alleged that he had encountered payment problems due to a “Costco performance error” and repeatedly promised to meet the balance, the statement said.

In August 2015, Nehal returned to LLD again, falsely claiming that Costco wanted to buy additional diamonds. This time, LLD allowed him to take the additional diamonds on delivery, explicitly indicating that he was not authorized to sell the diamonds without LLD’s approval.

LLD also demanded a partial payment upfront in the event of a sale, as Nehal’s outstanding balance at that point was nearly $ 1 million.

Nehal had already contacted Modell to arrange an additional loan. After collecting the diamonds from LLD, he mortgaged the majority of the diamonds at Modell to obtain two separate loans and sold the remainder of the diamonds to various retailers at a steep discount from the advertised shipping price.

LLD eventually uncovered the fraud and asked him to pay his outstanding balance immediately or return the diamonds. However, he had already sold or pawned all of the diamonds and spent most of that proceeds. LLD then reported the fraud to the Manhattan Attorney’s office.

Nehal’s brother, Nirav, 49, is wanted for fraud and money laundering in India in the estimated $ 2 billion fraud case by the Punjab National Bank (PNB). He remains in Wandsworth Prison in southwest London, where he has been held since his arrest in March last year.

The Interpol has issued a Red Corner Notice (RCN) against Nehal for alleged money laundering under investigation 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.

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