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
WatchesApr 21, 2026
Coco Chanel Enters the Game with New Watch CollectionGabrielle “Coco” Chanel is a character in the “Coco Game” collection of watches and the queen in its first haute horlogerie chessboard.
IndependentsApr 21, 2026
Meet Jewelers of America’s 2026 ‘20 Under 40’ ClassThe annual list honors rising professionals on the retail and supply sides of the jewelry industry.
TrendsApr 20, 2026
Beth Bernstein, Sonia Esther Soltani Pen New Jewelry Book“Jewelry Creators: Dynamic Duos and Generational Gems” highlights the relationships among 22 influential designers, brands, and gem dealers.
Brought to you by
Discover Timeless Treasures: A Showcase of Antique Jewelry & Timepieces in Las VegasGain access to the most exclusive and coveted antique pieces from trusted dealers during Las Vegas Jewelry Week.
Events & AwardsApr 20, 2026
Atlanta Jewelry Show’s Spring Event Is Hitting the RoadThe AJS Spring 2027 show will be held in Savannah, Georgia, with future shows taking place in other Southeast cities.
Weekly QuizApr 16, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
MajorsApr 20, 2026
Kendra Scott Names New CFO, Chief Business OfficerThe jewelry retailer plans to open 20 new stores this year and expand into new product categories.
TrendsApr 17, 2026
New (Groundbreaking) Floral Jewelry for Spring 2026Flower motifs are the jewelry trend blooming amongst the new collections that debuted this spring.
Brought to you by
Las Vegas Antique Jewelry & Watch Show: Showcasing the Most Collectible Merchandise from Across the GlobeGain access to the most exclusive and coveted antique pieces from trusted dealers during Las Vegas Jewelry Week.
MajorsApr 17, 2026
QVC Group Files for Chapter 11 BankruptcyThe retailer reported an 8 percent decline in annual sales as it struggles under the weight of billions of dollars of debt.
CollectionsApr 17, 2026
Edina Kiss’ Earrings Are the Devil on Your ShoulderThe “Devil” drop earrings, our Piece of the Week, are part of designer Edina Kiss’ new namesake jewelry line that she will show at Couture.
CrimeApr 17, 2026
FBI Issues Warning to Refineries, Retailers Due to High Price of GoldThe alert states that burglary crews are targeting jewelry businesses and details how jewelers and refineries can protect themselves.
WatchesApr 16, 2026
Cartier Brings Back the RoadsterThe “watchmaker of shapes” debuted the reworked version of the vintage sports car-inspired timepiece at Watches & Wonders.
IndependentsApr 16, 2026
Edge Retail Academy Updates Leadership TeamAs demand for jewelry retail coaching grows, the company has established a dedicated business coaching leadership team.
MajorsApr 16, 2026
Stuller’s Latest Mountings Catalog Is Out NowThe “Mountings 2026-2027” catalog showcases Stuller’s largest and most diverse assortment to date with more than 400 new mounting styles.
PodcastsApr 15, 2026
Episode 4: The Natural Diamond DilemmaSally Morrison and Mark Klein discuss De Beers’ first beacon in 16 years and the mistake the industry made with lab-grown diamonds.
MajorsApr 15, 2026
Spark Creations’ Randy McKenzie Dies at 72 McKenzie spent 45 years with Spark Creations and is remembered for being kind, dedicated, and hardworking.
WatchesApr 15, 2026
These Are the New Rolex Watches for 2026Rolex focused exclusively on the Oyster Perpetual this year, as the model is celebrating its 100th anniversary.
FinancialsApr 15, 2026
Kering’s Jewelry Shines in Q1, Gucci’s Struggle ContinuesThe luxury giant discussed the Middle East conflict and its transformation plans, hinting at a stronger jewelry presence in North America.
SourcingApr 15, 2026
Diamond Club West Coast Names 2026 BoardKalpesh Jhaveri was re-elected as president for a third year.
TechnologyApr 15, 2026
This Jewelry Brand’s Video Series Is Up for a Webby Award“Diamond Divas,” a social media reality series by Shahla Karimi Jewelry, is nominated in the “Best Social: Fashion & Beauty” category.
SourcingApr 14, 2026
De Beers Expands ‘Desert Diamonds’ Beacon Into BridalThe campaign seeks to reignite desire for natural diamond engagement rings by highlighting the “distinct character” of warm-toned diamonds.
FinancialsApr 14, 2026
LVMH’s Q1 Sales Sink 6% Amid Middle East ConflictPlus, how Saks Global’s bankruptcy affected the luxury giant’s first quarter.
SourcingApr 14, 2026
International Jade Summit to Return to MontereyPresented by Mason-Kay Jade, the summit, in its second year, will again be held during the Monterey Bay Jade Festival.
Events & AwardsApr 14, 2026
CBG Releases Details for Las Vegas ShowThe group has announced its lineup of speakers and a new “Rising Stars” pavilion.
CollectionsApr 13, 2026
Uniform Object’s New Jewelry Collection Centers on the ‘Carbon Form’The “Carbon Form” collection explores the contrast between high and low materials, using rubber cord alongside 18-karat gold and gemstones.
Events & AwardsApr 13, 2026
JA Accepting 2026 Impact Initiative ApplicationsThe program provides essential funding to organizations for projects that enhance the jewelry industry.
Events & AwardsApr 13, 2026
Couture Announces New Show in MiamiThe jewelry trade show is launching its first open-to-the-public event in Coconut Grove this November.
