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.
Editors' Picks
Sponsored by
More on Crime
The Latest
IndependentsJun 05, 2026
Pennsylvania Jewelry Store To Close After 79 YearsJim Springer, owner of Dunkelberger’s Fine Jewelry, is heading into retirement.
SurveysJun 05, 2026
Consumers to Cut Back on Spending Amid Rising Prices, Survey Shows When conducting its May consumer confidence survey, The Conference Board asked extra questions about consumers’ budgeting strategies.
CollectionsJun 05, 2026
Rebel Jewelry’s Charm Symbolizes Perseverance for Pride MonthThe “Tunnel” charm, our Piece of the Week, celebrates Pride Month with its design inspired by hope and the light at the end of the tunnel.
Brought to you by
All Eyes on Gold Prices. Alternatives to Look For. And What to BEWARE of in VegasAs gold prices rise, today’s retailers are looking for alternatives at prices that will appeal to wider audiences.
SourcingJun 05, 2026
State of Diamonds: The Way Forward for Natural DiamondsThe jewelry industry is reassessing its positioning as Gen Z reshapes the retail landscape and lab grown continues to gain market share.
Weekly QuizJun 05, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
AuctionsJun 04, 2026
Treasures from Maurice Tempelsman’s ‘Marvelous’ Life Head to AuctionUp for auction at Sotheby’s, the collection of Tempelsman’s personal effects includes a Cartier Tank watch Jackie O. gifted him.
CollectionsJun 04, 2026
Buddha Mama to Spend the Summer in AspenThe Miami-based fine jewelry brand will host its first summer residency in the Colorado mountain town from June 5 to Aug. 23.
Brought to you by
How Modern Training Is Becoming a Competitive Advantage for Jewelry RetailersWith the trade and customer trust in mind, GIA® developed NextGem™ – on-demand training designed specifically for retail.
MajorsJun 04, 2026
AGS Honors Late Peter Yantzer, Holds Time Capsule CeremonyThe organization also announced its international board of directors for the 2026-2027 term.
MajorsJun 04, 2026
Neiman Marcus’ Downtown Dallas Store to Close in SeptemberSaks Global confirmed the closure this week, spelling the end for a store that’s been part of downtown Dallas for more than 100 years.
ColumnistsJun 03, 2026
Peter Smith: When Top Talent Leaves and What It Says About YouSmith discusses how managers should handle a top performer's exit, warning that a poor response could have a lasting impact.
GradingJun 03, 2026
GIA’s Tracr Investment Is First Step Toward Industry-Owned PlatformThe Gemological Institute of America is now a 30 percent stakeholder in Tracr, the De Beers-backed blockchain for diamonds.
WatchesJun 03, 2026
The 1916 Company Taking Pre-Owned Rolexes on the Road, AgainThe retailer is bringing Rolex Certified Pre-Owned watches to five U.S. cities in 2026 for collectors to see, try on, and purchase.
IndependentsJun 03, 2026
Jessica Alba Is the New Face of Gabriel & Co.The actress and entrepreneur stars in the jeweler’s new campaign that celebrates life’s quiet moments.
TrendsJun 03, 2026
State of Design: Only the Innovative Will SurviveThe price of gold has risen, affecting the number of pieces designers make, the materials they use, and how they position themselves.
FinancialsJun 02, 2026
Signet Jewelers’ Q1 Sales Up 2% As It Focuses on ‘Core Four’ The jewelry retailer is zeroing in on Zales, Jared, Kay Jewelers, and Blue Nile as it looks to create unique brand identities for each.
SourcingJun 02, 2026
Leader Appointed for Botswana’s Diamonds for Development Fund Dr. Akinwumi Adesina, a development economist, will head the fund created to help Botswana diversify its economy.
WatchesJun 02, 2026
Watch Industry Veteran James Marks Joins Sotheby’sSotheby’s has appointed the former Phillips executive as its global head of private sales and retail in its watches division.
AuctionsJun 02, 2026
Sotheby’s to Auction 10-Carat Blue Diamond, 1960s Harry Winston Necklace A private collection of five Paraíba tourmalines also will be up for sale at Sotheby’s High Jewelry auction in New York, scheduled for June 16.
IndependentsJun 02, 2026
State of Retail: 6 Things Retailers Should Know About Consumers TodayFrom Gen Z’s view of luxury to “doom spending,” these are the six consumer trends to note this year.
Events & AwardsJun 01, 2026
Design Atelier Brands Have a Big Night at Emotional Couture Design AwardsThe show started by honoring Mildred Marcano, ended with a tearful Beth Anne Bonanno, and recognized a dozen-plus designers in between.
SourcingJun 01, 2026
RapNet Rebranding as Rapaport TradeThe revamped online diamond marketplace will feature pricing intelligence and data-driven tools for more efficient buying and selling.
SourcingJun 01, 2026
Gemfields’ Higher-Quality Emerald Auction Achieves $26.8MThe miner said demand for higher-quality emeralds is stable, but there is notable caution in the market.
CollectionsMay 29, 2026
Cultus Artem’s Necklace Is the Oasis in Las Vegas’ DesertThe “River of Heaven” necklace, our Piece of the Week debuting at Couture, combines 26 salt and pepper diamonds spaced by Tahitian pearls.
IndependentsMay 29, 2026
Meet the 2026 Retailer Hall of Fame InducteesThis year’s inductees include second-, third-, and fourth-generation jewelers.
Events & AwardsMay 28, 2026
JCK Announces Jesse Itzler as 2026 Keynote SpeakerThe author, speaker, and entrepreneur will give his presentation, “Spiritual Billionaire,” on Saturday morning.
Events & AwardsMay 28, 2026
JCK Rocks To Ride With NellyThree-time Grammy award-winning artist Nelly is set to perform at the annual event at Tao Beach on Sunday night.
