Nirav Modi's brother Nehal convicted of fraud in New York court
Diamond tycoon Nirav Modi’s brother Nehal Modi has been convicted of fraud in the US by a New York court which found him guilty of fraudulently obtaining $2.6 million worth of diamonds from a wholesale business in Manhattan.
New York District Attorney Alvin Bragg Junior announced in a statement released by his office that Nehal Modi had been convicted of the fraud at the business LLD Diamonds USA, ET Online reported. Nehal Modi is also accused of fraud, along with brother Nirav, at the Punjab National Bank in India for which Indian authorities have issued a Red Corner Notice against him.
“This scheme unfolded in the heart of New York City’s historic diamond district, where Mr Modi conned and defrauded a Manhattan business out of millions,” said Bragg in a statement, ET Bureau reported. “Here, there was clear and conclusive evidence that Modi obtained these diamonds under false pretences and used them for quick cash.”
According to the New York court, Nehal Modi approached LLD Diamonds in March 2015 and asked for diamonds worth close to $800,000 to present to US wholesale business Costco. Modi then falsely informed LLD Diamonds that Costco had agreed to purchase the diamonds so LLD Diamonds allowed Modi to purchase them on credit, with full payment due within 90 days. However, Modi instead pawned the diamonds the next day at Modell Collateral Loans for $450,000 which the court ruled he used for personal gain.
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