A New York Supreme Court charged Nehal Modi, Nirav Modi’s younger brother, with fraudulently obtaining diamonds worth more than 2.6 million dollars from LLD Diamonds, USA, which is one of the diamond companies largest in the world, reported PTI.
Reports say that Nehal, 41, who comes from a family known in the diamond business industry, was introduced to the president of LLD Diamonds through industry associates.
In 2015, between March and August, Nehal managed to obtain diamonds worth more than $ 2.6 million from LLD on favorable credit terms and consignment by making false statements and then liquidating the diamonds for his own purposes.
It should be noted that in 2019, Interpol had issued a Red Corner Notice against Nehal Modi, as mentioned in the charge sheet presented by the Directorate of Enforcement in the PNB scam in which his brother Nirav Modi is the main defendant. . Nehal had allegedly helped Nirav divert money to shell corporations.
Here’s how he scammed LLD Diamonds, based on the indictment, court documents, and statements made on file in Manhattan court:
> In March 2015, it approached LLD claiming that it was conducting business discussions with Costco Wholesale Corporation, for which it needed diamonds from LLD that would potentially be purchased by Costco.
> Nehal then falsely informed LLD that Cotsco agreed to buy the diamonds, after which LLD allowed him to buy them on credit. Full payment was required within 90 days.
> But Nehal mortgaged the diamonds for short-term loans.
> Meanwhile, he made some payments to LLD, but most of the proceeds were used for personal expenses.
> He also falsely claimed that he was having payment problems due to a “Costco compliance error” and made repeated promises to satisfy the balance.
> In August 2015, Nehal falsely informed LLD that Costco wanted to purchase additional diamonds. This time, LLD allowed him to take the additional diamonds on consignment, with terms explicitly stating that he did not have the authority to sell the diamonds without LLD’s authorization.
> LLD also required a partial upfront payment in the event of a sale, as Nehal’s outstanding balance was nearly $ 1 million at the time.
> LLD eventually discovered the fraud and demanded that you immediately pay your outstanding balance or return the diamonds. However, it had already sold or pawned all of the diamonds and spent most of those proceeds, after which LLD reported the fraud to the Manhattan district attorney’s office.
Nehal Modi is a citizen of Belgium and knows English, Gujarati and Hindi.
(With PTI inputs)
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