In December, a jury indicted Modi for one count of grand larceny, defined as the theft or robbery of an item valued at more than $US1 million.
According to Manhattan District Attorney Alvin Bragg, between March and August 2015, Modi made false representations regarding a purported deal with Costco Wholesale Corporation to obtain more than $US2.6 million worth of diamonds from Lev Leviev Diamonds, then liquidated the diamonds for his own personal gain.
“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.
“Here, there was clear and conclusive evidence that Mr. Modi obtained these diamonds under false pretenses and used them for quick cash.”
Modi was once CEO of retail group Samuels Jewelers, which shut down in 2019 after its parent company, India’s Gitanjali Group, collapsed as a result of fraud committed against Punjab National Bank.
Grand larceny in the first degree is a class B felony under New York state law and carries a minimum penalty of one to three years imprisonment.
Sentencing is scheduled for July 22 and according to reporting by Rapaport News, Modi plans to appeal his conviction.
The 41-year-old is the younger brother of infamous businessman Nirav Modi, 51, who is currently behind bars in the UK for a range of criminal offences including fraud and money laundering.
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