EditorsMay 27, 2021
Netflix Charts the Rise and Fall of ‘Bad Boy Billionaire’ Nirav ModiCrimeJul 19, 2022
Nehal Modi Convicted of Grand Larceny
The former Samuels CEO and brother of Nirav Modi was found guilty of fraudulently obtaining diamonds from Lev Leviev Diamonds.
Nehal Modi, the former CEO of Samuels Jewelers and brother of Nirav Modi, was recently convicted by a New York State Supreme Court of grand larceny in the first degree.
New York—Nehal Modi, the former CEO of now-shuttered Samuels Jewelers and brother of embattled diamantaire Nirav Modi, has been convicted by a New York State Supreme Court of grand larceny in the first degree.
Modi was found guilty of fraudulently obtaining more than $2.6 million worth of diamonds from New York-based wholesaler LLD Diamonds, also known as Lev Leviev Diamonds, recently made famous by its connection to the Tinder Swindler.
“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 Manhattan District Attorney Alvin Bragg, Jr.
“Here, there was clear and conclusive evidence that Mr. Modi obtained these diamonds under false pretenses and used them for quick cash.”
In March 2015, Modi reached out to LLD, falsely stating he had negotiated a deal to sell Costco nearly $800,000 worth of diamonds, as per a release from District Attorney Bragg.
LLD allowed Modi to purchase the diamonds on credit, with full payment expected within 90 days.
Modi did not sell the diamonds to Costco, but instead pawned them the following day at Modell Collateral Loans for $450,000 for his personal gain.
From April to May 2015, Modi reached out to LLD three more times, taking an additional $1 million worth of diamonds to supposedly sell to Costco.
He made a series of payments to LLD but used most of the proceeds from the diamond sales for his own personal use and other business expenses, according to the D.A.’s office.
Related stories will be right here …
Modi was found guilty of fraudulently obtaining more than $2.6 million worth of diamonds from New York-based wholesaler LLD Diamonds, also known as Lev Leviev Diamonds, recently made famous by its connection to the Tinder Swindler.
“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 Manhattan District Attorney Alvin Bragg, Jr.
“Here, there was clear and conclusive evidence that Mr. Modi obtained these diamonds under false pretenses and used them for quick cash.”
In March 2015, Modi reached out to LLD, falsely stating he had negotiated a deal to sell Costco nearly $800,000 worth of diamonds, as per a release from District Attorney Bragg.
LLD allowed Modi to purchase the diamonds on credit, with full payment expected within 90 days.
Modi did not sell the diamonds to Costco, but instead pawned them the following day at Modell Collateral Loans for $450,000 for his personal gain.
From April to May 2015, Modi reached out to LLD three more times, taking an additional $1 million worth of diamonds to supposedly sell to Costco.
He made a series of payments to LLD but used most of the proceeds from the diamond sales for his own personal use and other business expenses, according to the D.A.’s office.
When the bills came due, Modi falsely stated he was having an issue with Costco but said he would pay his debt.
In August 2015, Modi once again reached out to LLD, falsely stating Costco wanted to buy more diamonds.
LLD allowed Modi to take more diamonds, on consignment this time, under the condition that Modi could not sell these diamonds without LLD’s authorization.
And, with Modi’s debt at nearly $1 million, LLD asked for a partial payment upfront.
Modi, however, had already contacted Modell Collateral Loans to set up the sale before even receiving the latest diamonds from LLD, said the D.A.
After picking up the diamonds, Modi sold most of them the same day to Modell for $300,000 and the rest to various retailers at a discount from LLD’s consignment price.
Eventually, LLD discovered the fraud and told Modi he had to either pay his debt or return the diamonds, but the diamonds were gone, as were most of the proceeds.
LLD reported the fraud to the Manhattan D.A.’s office, who handed the case to a team of investigators.
Detective Joseph Metsopulos from the NYPD’s Major Case Squad, who received the John J. Kennedy Award at the 2022 AGS Conclave, also assisted in the investigation.
Bragg advised any company or individual who believes they have been the victim of theft to call the Financial Frauds Hotline at 212-335-8900.
Modi’s lawyer Roger Bernstein told Rapaport he plans to appeal the conviction. Sentencing is set for July 22.
More on Crime
The Latest
ColumnistsJan 22, 2025
On Data: How Did Independent Jewelers Fare in 2024? Sherry Smith shares data on the year gone by, including the breakdown between natural and lab-grown diamond sales.
Policies & IssuesJan 22, 2025
Jewelers Mutual Steps Up Aid for LA Jewelry BusinessesThe company also is matching donations made to Jewelers of America and the Diamond Council of America’s Jewelers Relief Fund.
Events & AwardsJan 22, 2025
JA Seeking Nominations for Its Next ‘20 Under 40’ ClassNow in its fourth year, the program is expanding to include a list of “20 Under 40” for jewelry suppliers.
Brought to you by
3 New Year’s Resolutions for Jewelry Lovers The new year feels like a clean slate, inspiring reflection, hope, and the motivation to become better versions of ourselves.
SurveysJan 22, 2025
Holiday Sales Hit Record High, Says NRFCore retail sales during the 2024 holiday season surpassed the National Retail Federation’s forecast.
Weekly QuizJan 16, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
CollectionsJan 22, 2025
Foundrae’s New Collection Channels the Power of NowThe “Reach for Life” collection uses feather and arrow motifs to invite growth and inner curiosity.
ColumnistsJan 21, 2025
Peter Smith: Sales Training’s Dirty Little SecretPeter Smith pulls back the curtain on the often misinterpreted, and sometimes maligned, world of sales training.
Brought to you by
A Diamond Is Forever Celebrates "Forever Present" Holiday CampaignA Diamond is Forever hosted a holiday celebration in honor of their new marketing campaign, ‘Forever Present.’
TrendsJan 21, 2025
Amanda’s Style File: Decadent Mocha MoussePantone’s 2025 Color of the Year takes the form of jewelry through gemstones and enamel that look just as delicious as mocha mousse.
Policies & IssuesJan 21, 2025
These Designers and Retailers Are Raising Money for LA Wildfire Relief From raffles to auctions to donations, the industry is working to aid charities in Los Angeles amid the raging wildfires.
SourcingJan 21, 2025
Diamonds Do Good Adds 2 Board MembersJulia Hackman Chafé and Monica Elias have joined the organization’s board of directors.
FinancialsJan 17, 2025
Richemont’s Jewelry Sales Rise 14% in Holiday QuarterThe company, which owns Cartier and Van Cleef & Arpels, had a record Q3, with sales topping $6 billion.
CollectionsJan 17, 2025
Piece of the Week: Picchiotti’s Transformable ‘Classic Blue and Green’ NecklaceThe necklace features a sapphire drop weighing more than 9 carats that detaches to transform into a ring.
MajorsJan 17, 2025
Tiffany & Co., CFDA Name First Winner of Jewelry Designer AwardJameel Mohammed, founder of Afrofuturist brand Khiry, will receive a cash prize and a one-year paid fellowship with Tiffany & Co.
IndependentsJan 16, 2025
Lux Bond & Green to Open Sixth LocationThe 127-year-old jeweler is planning to open a new store in Mystic, Connecticut.
WatchesJan 16, 2025
Timex Launches Collection of National Park WatchesThe watches’ dials feature artwork celebrating the vibrant energy and unique landscapes of six of America’s national parks.
AuctionsJan 16, 2025
Elizabeth Taylor’s Diamond Line Bracelet Going up for Auction Offered by U.K. auction house Woolley & Wallis, the yellow diamond bracelet was a gift from Taylor’s good friend Michael Jackson.
Events & AwardsJan 16, 2025
JCK Las Vegas 2025 Open for RegistrationThe jewelry trade show returns to The Venetian Expo and The Venetian Resort in Las Vegas from June 6 to 9.
EditorsJan 15, 2025
The Jewelry I’d Bid On in Christie’s Iris Apfel AuctionAssociate Editor Natalie Francisco highlights her favorite fashion jewelry pieces from the upcoming “Unapologetically Iris” auction.
MajorsJan 15, 2025
Macy’s to Close 66 Stores as Part of Turnaround StrategyThe closures are part of the retailer’s plan to close 150 locations over a three-year period.
Policies & IssuesJan 15, 2025
JVC Debuts Guide to Americans with Disabilities Act ComplianceThe online guide is available for free and written with the jewelry industry in mind.
Events & AwardsJan 15, 2025
Jose Hess Design Awards Open for SubmissionsThe awards honor the late Jose Hess, a founding member of AJDC and an award-winning jewelry designer.
GradingJan 14, 2025
GIA CEO, President Susan Jacques to Retire at the End of 2025The grading lab said the search for her successor is underway.
ColumnistsJan 14, 2025
Jules Kim: Building Bridges Between Creators and IndustryIn this special op-ed, designer Jules Kim calls on big brands to collaborate with independent creators instead of copying their designs.
GradingJan 14, 2025
Former SSEF Director Henry A. Hänni DiesA pioneering figure in gemology, he is remembered for his spirit of generosity, curiosity, and joy.
FinancialsJan 14, 2025
Signet Jewelers Lowers Q4 Guidance After Holiday Sales Fall ShortThe peak selling days leading up to Christmas did not meet the jewelry retailer’s expectations.
MajorsJan 14, 2025
Edouard Schneider Joins Messika as Chief Brand OfficerSchneider brings over 20 years of luxury and fashion industry experience to his role as a key member of the brand’s global leadership team.
