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New Delhi:
Nehal Modi, a brother of PNB fraud-accused jeweller Nirav Modi, has been charged within the US of defrauding an organization of over $1 million value in diamonds.
Mr Modi allegedly made “false representations” to acquire greater than $2.6 million value of the gems from LLD Diamonds USA on favorable credit score phrases and consignment, after which liquidated them for his personal ends, in response to a December 18 assertion from the workplace of the Manhattan District Attorney, Cy Vance Junior.
“While diamonds may be forever, this flawed scheme was not, and now Mr Modi will face the clarity of a New York Supreme Court indictment,” Cy Vance Junior mentioned within the assertion on Friday.
Mr Modi, a resident of Antwerp, is the brother Nirav Modi, the Belgian diamond dealer who was previously Indian, recognized for his function in one among India’s greatest financial institution fraud instances in recent times through which he allegedly swindled $2 billion from Punjab National Bank.
Announcing Nehal Modi’s indictment, the assertion from the District Attorney’s workplace mentioned the accused had approached LLD claiming he was pursuing a relationship with Costco Wholesale Corporation and sought diamonds value practically $800,000 to current to Costco for a possible sale.
Later he lied to LLD that Costco had agreed to the deal and bought the diamonds on credit score from LLD. However, Mr Modi then pawned the diamonds to safe a short-term mortgage, the assertion mentioned.
“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 assertion mentioned.
LLD lastly realised the fraud and demanded a direct fee of the stability or return of the diamonds. However, Mr Modi had already bought or pawned all of them and spent many of the proceeds. LLD subsequently reported the fraud to the Manhattan District Attorney’s Office.
The New York Supreme Court has now indicted him with grand larceny within the first diploma.
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