Manhattan District Attorney Cy Vance, Jr., announced the indictment of Nehal Modi, 41, for obtaining over $2.6 million worth of diamonds from a diamond wholesale company in Manhattan, allegedly through fraudulent means.
“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,” District Attorney Vance is quoted saying in the press release. “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,” Vance added.
However, Modi is not guilty until the allegations are proven in court.
The press release said that according to the indictment, court filings, and statements made on the record in court, between March 2015 and August 2015, Modi, a former member of Noble Titan Holdings, LLC, allegedly made false representations to obtain over $2.6 million worth of diamonds from LLD Diamonds USA, LLC (“LLD”) on favorable credit terms and consignment, and then liquidated the diamonds for his own ends.
Modi, who comes from a well-known family in the diamond industry, was initially introduced to the president of LLD through industry associates, the press release said.
When LLD demanded that MODI immediately pay his outstanding balance or return the diamonds after it uncovered the alleged fraud, “… the defendant had already sold or pawned all of the diamonds and spent most of those proceeds,” the press release said.
Following that, LLD reported the alleged fraud to the Manhattan D.A.’s Office.