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
CollectionsJul 25, 2025
Piece of the Week: Jemma Wynne’s ‘Forme’ NecklaceAnne Hathaway was seen wearing the toggle necklace three times while filming scenes for “The Devil Wears Prada 2.”
Events & AwardsJul 25, 2025
Pre-Registration Open for September Hong Kong ShowJewellery & Gem World Hong Kong is scheduled for Sept. 15 to 21, and buyer pre-registration will be available until Sept. 7.
FinancialsJul 25, 2025
LVMH Sales Slip in H1 Amid ‘Prevailing Uncertainties’Renovations at Tiffany & Co. stores ate into profits in the company’s watch and jewelry division.
Brought to you by
Taking the Moment Head On: How Rio Grande Champions the Present & Future of Fine JewelryAs a leading global jewelry supplier, Rio Grande is rapidly expanding and developing new solutions to meet the needs of jewelers worldwide.
Events & AwardsJul 24, 2025
2 Retailers to Receive 2026 Gem Award for Lifetime AchievementMark and Candy Udell of London Jewelers will receive the honor at the 24th annual Gem Awards next March.
Weekly QuizJul 25, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
SourcingJul 24, 2025
De Beers Sees Diamond Production Sink 36% in Q2 While struggles continue at the mining and trading end of the pipeline, consumer demand for diamond jewelry is holding steady.
CollectionsJul 24, 2025
Francesca Villa Adds Dimension to Her Intaglio CharactersThe “Fantasia” jewelry collection turns the intaglio animals from her “Close Encounters” collection into 3D characters.
Brought to you by
Investing in the Next Generation of Bench JewelersThe Seymour & Evelyn Holtzman Bench Scholarship from Jewelers of America returns for a second year.
WatchesJul 24, 2025
Breitling Drops Super Bowl Watch Honoring the Philadelphia Eagles The special Classic Avi Chronograph 42 with an Eagles-green dial is limited to 59 pieces, a nod to the Super Bowl Philadelphia just won.
CollectionsJul 23, 2025
Silvia Furmanovich’s ‘Kashmir’ Collection Is a Tribute to Northern IndiaThe “Kashmir” collection features centuries-old craft techniques made in collaboration with the region’s master papier-mâché artisans.
IndependentsJul 23, 2025
Montreal’s Ecksand Eyes Move to SoHoCreative Director Erica Bianchini shared why the jeweler is looking to expand into the U.S. and how it’s putting Canadian craftsmanship on the map.
IndependentsJul 23, 2025
IJO Raises Nearly $37K for LA Fire Relief Two Los Angeles Fire Department stations plan to use the donations to upgrade their equipment and tools.
CollectionsJul 22, 2025
Jewelry With a Rock ‘n’ Roll Aesthetic Heads to Sotheby’s LondonNext week, the auction house will kick off a selling exhibition of jewelry by British artist Hannah Martin and Coldplay’s Guy Berryman.
SourcingJul 22, 2025
Antwerp Diamond Heist Documentary Coming to Netflix“Stolen: Heist of the Century” is based on “Flawless,” the book about the middle-of-the-night theft, and will debut on Netflix in August.
ColumnistsJul 22, 2025
The Gifting Gap: How to Market Jewelry Beyond the HolidaysEmmanuel Raheb shares the top five gifting moments outside of major holidays that jewelers should build marketing campaigns around.
Events & AwardsJul 22, 2025
NY Now’s Summer Market Returns in AugustThe wholesale trade show’s Luxury Lifestyle section will showcase established and emerging jewelry designers.
MajorsJul 21, 2025
Rio Grande Expands Personalization OfferingsAs demand for custom jewelry grows, the company is expanding its services to support retailers.
Events & AwardsJul 21, 2025
NAJA’s 2025 ‘Ace It’ Conference To Go VirtualThe mid-year conference for jewelry and watch appraisers is slated for Aug. 9 to 10 on Zoom.
TrendsJul 21, 2025
Amanda’s Style File: Graduated With Honors Graduated stones make for elevated tennis-style pieces and dramatic statement necklaces.
Events & AwardsJul 21, 2025
Gem Awards Now Accepting Nominations for 2026Nominations in the categories of Jewelry Design, Media Excellence, and Retail Innovation will be accepted through July 30.
MajorsJul 18, 2025
Lewis Heyman on Sourcing Gemstones, Post-Retirement PlansHe retired last month after 28 years traveling the world to source the very best gemstones for his family’s jewelry business, Oscar Heyman.
TrendsJul 18, 2025
Piece of the Week: CCWW Designs’ Shell Charm NecklaceThe charm necklace features six nautical charms of shells and coral that founder Christina Puchi collected on Florida’s beaches.
MajorsJul 18, 2025
Plumb Club Elects New Board MembersThe organization elected its youngest vice president as it looks to draw in fresh talent.
TechnologyJul 18, 2025
Brad Campbell, John Liebler Join Clientbook’s Executive Team Campbell joins the company as vice president of business development while Liebler is the new vice president of operations.
CollectionsJul 17, 2025
2026 Winter Olympic Medal Design Symbolizes UnityThe medals feature a split-texture design highlighting the Games’ first time being hosted by two cities and the athletes’ journeys.
Supplier BulletinJul 17, 2025
The INSTORE Jewelry Show 2025: Your Holiday Preparations, All Wrapped Up! Sponsored by The INSTORE Jewelry Show 2025
SurveysJul 17, 2025
The Most Recommended Brands in the World, According to YouGovGlobally, travel and transportation brands reigned, while in the U.S., alcoholic beverage companies and a lingerie brand took the top spots.
