Nehal Modi, brother of PNB fraud-accused jeweller Nirav Modi and wanted by the CBI in the case, has been charged in the US for fraud case worth 1 million dollars in diamonds.
Nehal Modi made ‘false representations’ to obtain more than $2.6 million worth of the gems from LLD Diamonds USA on favorable credit terms and consignment, and then liquidated them for his own ends, according to a statement from office of the Manhattan District Attorney.
“As alleged, Mr Modi conned a Manhattan diamond wholesaler into fronting him millions worth of diamonds for a purported deal with Costco that never existed. 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,” Manhattan District Attorney Cy Vance was quoted in the statement.
According to the statement, Nehal Modi in 2015 made false representations to obtain over $2.6 million worth of diamonds from LLD Diamonds, USA ‘on favorable credit terms and consignment, and then liquidated the diamonds for his own ends.’
Nehal Modi, a resident of Belgium, is brother of Nirav Modi, the diamond trader who was one of the accused in one of bank fraud case where he allegedly swindled $2 billion from Punjab National Bank, a NDTV report said.
Nehal Modi himself is wanted by the CBI in PNB fraud case and charged with destroying evidence in Dubai to cover the tracks of the alleged crime.
“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,” the statement reads.
To cover his fraud, Nehal Modi falsely claimed that he was encountering payment issues due to an error and made repeated promises to satisfy the balance, the statement adds.
He is now charged in a New York Supreme Court indictment with Grand Larceny in the First Degree. The Interpol has issued a Red Corner Notice (RCN) against Nehal on charges of alleged money laundering that is being probed by the Enforcement Directorate. Nehal was born in Antwerp, Belgium in 1979, and he knows languages such as English, Gujarati and Hindi, according to the RCN issued by Interpol.
The New York Post quoted Nehal’s defense lawyer Roger Bernstein as saying: “This is a commercial dispute" and that “Nehal is not guilty." A video on The Post website shows Nehal walking with Bernstein, who said “we are not discussing anything about the case" when asked about the Interpol notice.