Nehal Modi Convicted of Grand Larceny

CrimeJul 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 … 

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.

Lenore Fedowis the associate editor, news at National Jeweler, covering the retail beat and the business side of jewelry.

The Latest

WatchesAug 19, 2022
WatchBox Names Jack Forster Global Editorial Director

He was previously editor-in-chief at Hodinkee.

CollectionsAug 19, 2022
Piece of the Week: Akaila Reid’s ‘Wavy’ Bangle

It’s the hero piece of the emerging designer’s new “Wavy Baby” collection.

Supplier BulletinAug 18, 2022
Why Online Auctions Are Ideal For Selling Hard-To-Find Jewelry

Sponsored by HiBid

Brought to you by
The American Mined™ Collection: Ethical Sourcing That Matters

Rio Grande provides a pathway to responsibly sourced gemstones.

ColumnistsAug 18, 2022
Squirrel Spotting: The Travails of Attracting and Retaining Talent

The job market is tight, making it paramount for employers to have the type of culture employees really crave, Peter Smith writes.

Weekly QuizAug 18, 2022
This Week’s Quiz
Test your knowledge of the latest jewelry news with this quick test.
Take the Quiz
MajorsAug 18, 2022
Pandora Charms Pet Owners with New Accessories

The jewelry company has also hired a new chief marketing officer.

CollectionsAug 18, 2022
Hearts On Fire’s Latest Collection Reaches for the Sky

“Aerial” is edgy and glamorous, inspired by nature’s wild forms.

Brought to you by
Knowledge and Skills for Today’s Hot Topics

From laboratory-grown diamonds to design to country-of-origin, GIA's Alumni Collective™ has a seminar to suite your needs.

GradingAug 18, 2022
VDB, Lab Grown Source Add 8X to Cut Grade Search Filter

8X is now the top cut grade on both platforms, above Ideal.

CollectionsAug 17, 2022
Playing Doubles: Monica Rich Kosann, Chris Evert Team Up on Tennis Bracelets

It is the first tennis bracelet collab for the legend, whose lost-and-found moment put the term “tennis bracelet” in the jewelry lexicon.

FinancialsAug 17, 2022
Watches of Switzerland’s US Sales Double in Q1

The company posted a strong start to the year but is cautious about the second half.

Events & AwardsAug 17, 2022
6 Things to Know About the Second HardRock Summit

The event will bring gems, minerals, and fossils under one roof from Sept. 8-11 in Denver.

SourcingAug 17, 2022
Diamond Supplier SRK Pledges 750 Solar-Power Rooftops

The charitable mission is in honor of India’s 75 years of independence.

Lab-GrownAug 16, 2022
Pandora’s Lab-Grown Diamond Line Heads to the U.S.

The announcement preceded the Danish company’s release of its second-quarter results.

ColumnistsAug 16, 2022
The PR Adviser: Describe Your Customer

Columnist Lilian Raji continues her tour of the customer journey by asking, who is your customer? And, what do they like?

EditorsAug 16, 2022
Tiffany’s ‘Lock’ Bangle May Be Its Answer to Cartier’s ‘Love’ Bracelet

The unisex style succeeds in several ways while saying a lot about what’s trending in jewelry, writes Senior Editor, Fashion, Ashley Davis.

SourcingAug 15, 2022
Q&A: Moyo Gems Celebrates 3 Years and Many Milestones

In honor of the anniversary, Pact’s Mines to Markets Director Cristina Villegas discusses recent expansion and where it goes from here.

Events & AwardsAug 15, 2022
David Webb to Hold an Exhibition of Its Animal Jewelry

“A Walk in the Woods” will open at the brand’s Madison Avenue flagship this fall.

Events & AwardsAug 15, 2022
Plumb Club, JVC to Hold Webinar on Sustainability Marketing

The Jewelers Vigilance Committee’s Sara Yood will give an overview of what the FTC guidelines currently say and what may be changing.

Lab-GrownAug 12, 2022
Report: State Bank of India to Begin Lending to Lab-Grown Producers

The loans will go mostly to the import of machinery rather than working capital, according to a recent article from The Economic Times.

FinancialsAug 12, 2022
Brilliant Earth’s Fine Jewelry a Hit in Q2

The company is also continuing its retail expansion.

AuctionsAug 12, 2022
2 Rolexes Paul Newman Gave to Stuntman Stan Barrett Head to Auction

The sale also will include a third Rolex, with all three watches tied to Barrett’s 1979 attempt to break the world record for land speed.

CollectionsAug 12, 2022
Piece of the Week: İTÄ Jewelry’s ‘Danza’ Ring

It mixes diamond shapes and colors.

Supplier BulletinAug 11, 2022
AGTA GemFair™ Denver – Back and Better Than Before!

Sponsored by AGTA

AuctionsAug 11, 2022
Sotheby’s Is Preparing its First Art Jewelry Auction This Fall

“Art as Jewelry as Art” features works from artists like Salvador Dalí, Alexander Calder, and Max Ernst.

IndependentsAug 11, 2022
Martin Katz Is Moving to a Penthouse

The jeweler is relocating his Beverly Hills store after 20 years and has begun developing a lifestyle brand.

MajorsAug 11, 2022
Brilliant Earth Opens First Missouri Showroom in St. Louis

It’s the company’s seventh showroom opening this year.


This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy