PNB Scam Accused Nirav Modi's Brother Charged In New York For Over $2.6 Million Fraud

The crime of grand larceny in the first degree under New York State laws is theft involving more than $1 million and it carries a maximum penalty of 25 years in prison.

Nehal Modi, who is a brother of PNB fraud-accused jeweller Nirav Modi,  and wanted by the CBI in the same case has now been charged in the United States by a New York prosecutor in an alleged $2.6 million fraud carried out through a multilayered scheme to cheat one of the world's biggest diamond companies. While announcing the charges against Nehal Modi on Friday, the prosecutor, Cy Vance, said, "While diamonds maybe forever, this flawed scheme was not, and now Mr Modi will face the clarity of a New York Supreme Court indictment." Also Read: EPFO May Credit 8.5% Interest For 2019-20, Here's How To Check Balance What are the charges? Modi was charged in the state supreme court with "grand larceny in the first degree" for allegedly "fraudulently obtaining over $2.6 million worth of diamonds from a diamond wholesale company located in Manhattan. The crime of grand larceny in the first degree under New York State laws is theft involving more than $1 million and it carries a maximum penalty of 25 years in prison. The alleged crime goes back to 2015 when Nehal Modi asked a company identified as LLD Diamonds USA to obtain over $2.6 million worth of diamonds with "false representations", some of which he pawned for loans and sold the rest as steeply discounted prices, the prosecution said in a statement. Under the judicial procedure in New York, the prosecutors first presented the case to a grand jury -- a panel of citizens -- to determine if there was a prima facie case to proceed with prosecution. The grand jury indicted him -- a finding that there were enough grounds to charge him. What did Nehal Modi say in court? As per the New York Post, Modi told the court he was not guilty of the charge and was released without bail. The website has posted  a video where Modi is seen walking with a man who may be his lawyer in what appears to be the corridor of a court building. Asked about the case, he replied, "There's nothing about the case." Asked about the Interpol notice, the man accompanying him, said, "We are not discussing anything about the case, I told you that." What is the Red Notice against Modi? As per the IANS report, Nehal Modi is wanted in India in connection with an alleged Rs 13,500 crore (about $1.9 billion) fraud involving the Punjab National Bank, and at the request of India the Interpol has issued a Red Notice, which is a request to law enforcement worldwide to arrest him pending extradition.