CrimeAug 01, 2022
Joseph DuMouchelle Sentenced to 12 Years Behind Bars in $12M FraudCrimeAug 08, 2022
Nehal Modi Sentenced to 3-9 Years in Grand Larceny Case
He was convicted last month after falsely claiming he had a deal with Costco in order to obtain millions in diamonds from LLD Diamonds USA.
New York—Nehal Modi was sentenced to three to nine years in state prison for perpetrating a scheme in which he stole millions in diamonds from wholesaler LLD Diamonds, the Manhattan District Attorney’s office announced late last month.
Modi, 43, was the CEO of Gitanjali Gems-owned Samuels Jewelers, which filed for bankruptcy and ultimately ended up closing all of its stores in 2019 in the wake of the $2 billion banking scandal in India allegedly involving Modi’s uncle, Gitanjali Chairman Mehul Choksi, as well as his brother, Nirav Modi, among others.
The case brought against Nehal Modi in New York involved $2.6 million of diamonds he obtained from LLD Diamonds USA LLC, also known as Lev Leviev Diamonds, over a six-month period in 2015.
According to the Manhattan D.A., Modi first approached LLD Diamonds in March 2015 and obtained about $800,000 in diamonds from the wholesaler by falsely claiming he had a contract with Costco Wholesale Corp., which Modi said had agreed to purchase diamonds from LLD.
LLD allowed him to purchase the diamonds on credit but instead of selling them to Costco, Modi pawned them at Modell Collateral Loans Inc., pocketing $450,000 for personal gain.
In April and May 2015, Modi went back to LLD Diamonds three more times and obtained an additional $1 million-plus in diamonds that he allegedly was going to sell to Costco but instead pawned or sold for a discount.
He did make payments 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, 43, was the CEO of Gitanjali Gems-owned Samuels Jewelers, which filed for bankruptcy and ultimately ended up closing all of its stores in 2019 in the wake of the $2 billion banking scandal in India allegedly involving Modi’s uncle, Gitanjali Chairman Mehul Choksi, as well as his brother, Nirav Modi, among others.
The case brought against Nehal Modi in New York involved $2.6 million of diamonds he obtained from LLD Diamonds USA LLC, also known as Lev Leviev Diamonds, over a six-month period in 2015.
According to the Manhattan D.A., Modi first approached LLD Diamonds in March 2015 and obtained about $800,000 in diamonds from the wholesaler by falsely claiming he had a contract with Costco Wholesale Corp., which Modi said had agreed to purchase diamonds from LLD.
LLD allowed him to purchase the diamonds on credit but instead of selling them to Costco, Modi pawned them at Modell Collateral Loans Inc., pocketing $450,000 for personal gain.
In April and May 2015, Modi went back to LLD Diamonds three more times and obtained an additional $1 million-plus in diamonds that he allegedly was going to sell to Costco but instead pawned or sold for a discount.
He did make payments 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.
Modi returned to LLD Diamonds again in August 2015. By this time, his debt totaled almost $1 million.
LLD allowed Modi to take more diamonds but on consignment this time and under the condition that Modi could not sell these diamonds without LLD’s authorization.
The company also asked for partial payment upfront.
Modi, however, already had a plan in place to sell the diamonds to Modell Collateral Loans, said the D.A., and sold most of them to Modell for $300,000 on the same day he picked them up from LLD. He sold the rest to various retailers at a discount.
LLD eventually discovered the fraud and reported it to the Manhattan D.A.’s office, which handed the case to a team of investigators including Detective Joseph Metsopulos from the New York Police Department’s Major Case Squad, who received the John J. Kennedy Award for law enforcement excellence at AGS Conclave this year.
A jury convicted Nehal Modi of one count of grand larceny in the first degree, a Class B felony in the state of New York, on July 7.
He was sentenced on July 29 and is currently in custody.
His attorney, New York-based Roger J. Bernstein, told National Jeweler on Monday that he plans to file an appeal but declined any further comment on the case.
Editor’s note: This story was updated post-publication to add a comment from Nehal Modi’s attorney.
More on Crime
The Latest
TrendsDec 11, 2025
Pinterest 2026 Trend Report: Brooches, Bold Gold, Cool BlueIn its annual report, Pinterest noted an increase in searches for brooches, heirloom jewelry, and ‘80s luxury.
GradingDec 11, 2025
GIA to Offer Origin Determination for 3 More GemstonesStarting Jan. 1, customers can request the service for opal, peridot, and demantoid garnet.
IndependentsDec 11, 2025
Look Inside Day’s Jewelers’ Ninth StoreThe 111-year-old retailer celebrated the opening of its new location in Salem, New Hampshire, which is its third store in the state.
Brought to you by
Impacting Tomorrow TodayHow Jewelers of America’s 20 Under 40 are leading to ensure a brighter future for the jewelry industry.
MajorsDec 11, 2025
Americas Gold Releases New Gold Chain CatalogThe new catalog features its most popular chains as well as new styles.
Weekly QuizDec 11, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
AuctionsDec 10, 2025
Francis Ford Coppola’s Watch Sells for $10.8MThe filmmaker’s personal F.P. Journe “FFC” prototype was the star of Phillips’ recent record-setting watch auction in New York.
WatchesDec 10, 2025
There’s A New Rolex Boutique in MiamiThe new location in the Design District pays homage to Miami’s Art Deco heritage and its connection to the ocean.
Brought to you by
Roseco Releases New Full-Line CatalogRoseco’s 704-page catalog showcases new lab-grown diamonds, findings, tools & more—available in print or interactive digital editions.
SurveysDec 10, 2025
Consumer Confidence Drops in November Inflations, tariffs, and politics—including the government shutdown—were among consumers’ top concerns last month.
SourcingDec 10, 2025
NAJA Announces Details for 2026 ‘Ace It’ Winter Conference“Longtime favorite” presenters, as well as first-time speakers, will lead talks and workshops at the annual event in Tucson next year.
Events & AwardsDec 10, 2025
MJSA Names 2025 Responsible Design Challenge WinnerSilas Smith of Meridian Metalworks won the challenge with his pendant that blends Australian and American landscapes.
AuctionsDec 09, 2025
‘Desert Rose’ Diamond Sells for $8.8M in Abu DhabiThe sale of the 31.68-carat, sunset-hued stone was part of Sotheby’s first series of events and auctions in Abu Dhabi.
ColumnistsDec 09, 2025
Holiday Sales Happen in December, Most Decisions Don’tMost customers who walk into your store this month have made up their minds. Your job is to validate their choice, Emmanuel Raheb writes.
TrendsDec 09, 2025
‘Once Upon a Time,’ Guzema Debuted Its Holiday CollectionThe collection features characters and motifs from Ukrainian folklore, including an enchanted mirror and a magic egg.
TechnologyDec 09, 2025
Gemvision Releases Updated MatrixGoldMatrixGold 3.11, the newest version of the jewelry design program, offers more flexibility, precision, and creative control.
Events & AwardsDec 09, 2025
MJSA Showcase Pavilion Returning to JA New York The pavilion will be part of the 2026 JA New York Spring show, scheduled for March 15 to 17.
MajorsDec 08, 2025
Juell Kadet, a ‘Lifelong Pillar’ of Rogers & Hollands, Dies at 96Kadet, a 1994 National Jeweler Retailer Hall of Fame inductee, helped grow the family-owned retailer in the Chicago area and beyond.
TechnologyDec 08, 2025
You’ve Heard of Smart Watches and Rings; Meet Smart EarringsBilled as the world’s smallest wearable, Lumia Health’s new smart earrings have a health tracker subtly embedded in the back.
TrendsDec 08, 2025
Amanda’s Style File: Celebrating December’s BirthstonesDon’t let those with December birthdays feel blue. Help them celebrate their month with blue zircon, turquoise, and tanzanite.
CollectionsDec 05, 2025
Piece of the Week: Robinson Pelham’s ‘Tsar Star’ EarringsThe new pink sapphire version of the piece dances with its wearer in the brand’s “Icons After Dark” holiday campaign.
TrendsDec 05, 2025
Pantone’s Color of the Year for 2026 Is … WhiteA choice that’s generated a lot of commentary, Pantone says “Cloud Dancer” marks a fresh start and encourages relaxation and creativity.
MajorsDec 05, 2025
Stuller Releases ‘Wrapped in Wonder’ CampaignThe manufacturer’s holiday campaign features a gift guide filled with trending designs and jewelry that can be personalized.
IndependentsDec 04, 2025
Step Inside JR Dunn Jewelers’ Giant New Store The Florida independent expanded its store from 8,000 to 14,000 square feet, fulfilling the vision of its late co-founder, Jim Dunn.
Supplier BulletinDec 04, 2025
Introducing Shop Natural Day: A New Movement Celebrating Natural DiamondsSponsored by De Beers Group
WatchesDec 04, 2025
Casio Shrinks its G-Shock WatchThe classic 5600 series G-Shock has been scaled down to about a tenth of its size, becoming a fully functioning watch ring.
Events & AwardsDec 04, 2025
AGA Announces 2026 Tucson Speaker LineupThe association’s annual conference and gala will take place Feb. 4, 2026, during the Tucson gem shows.
Events & AwardsDec 04, 2025
CBG Announces Speaker Lineup for 2026 Miami Event The January show will include a workshop for jewelry retailers on implementing AI to strengthen their businesses.
