Nirav Modi

Nirav Modi
Born (1971-02-27) 27 February 1971[1]
Palanpur, Gujarat, India
Disappeared 2018
Status Most Wanted
Residence New York and New Dehli
Nationality Belgian, Indian
Citizenship Belgian, Indian
Alma mater Wharton School of the University of Pennsylvania
Occupation Jewellery designer, diamond merchant
Years active 1989 - present
Organization Firestar Diamond International, Gitanjali Group, A. Jaffe Inc.
Known for Diamond business, bank fraud, wanted by Interpol[2]
Home town Mumbai
Net worth Less than $300 million[3]
Height 5.6 ft (171 cm)
Weight 65 kg (143 lb)
Criminal status Absconding
Spouse(s) Ami Modi
Children 3
Relatives Mehul Choksi (uncle)
Criminal charge Criminal conspiracy, criminal breach of trust, cheating and dishonesty including delivery of property, corruption, money laundering, fraud, embezzlement and misrepresentation.
Wanted by
 Interpol, The Judicial Authoritis of India, Los Angeles Police Department, New York Police Department, Federal Bureau of Investigations, Royal Canadian Mounted Police
Partner(s)
  • Mehul Choksi (uncle)
  • Neeshal Deepak Modi (brother)
  • Parab Subhash Shankhar (manager, close aide)
Wanted since August 2018
Details
Victims Union Bank, PNB Bank, Paul Alfonso
Country USA, Hong Kong, Singapore, London, Dubai and India

Nirav Deepak Modi (born 27 February 1971) is an Indian businessman and is wanted by the Interpol for criminal conspiracy, criminal breach of trust, cheating and dishonesty including delivery of property, corruption, money laundering, fraud, embezzlement and breach of contract since August 2018.[4] Modi made international headlines again in October 2018 when Los Angeles entrepreneur, Paul Alfonso, filed a US$4.2 million lawsuit in Los Angeles against Modi and two of his now defunct companies namely Firestar Diamond Inc. and A. Jaffe Inc. According to court records from the Superior Court of California, Modi fraudulently sold two custom diamond engagement rings to Alfonso that turned out to be lab diamonds. The value of both diamond rings were US$200,000. Modi's younger brother Neeshal Deepak Modi and manager and close aide Parab Subhash Shankhar are also wanted by Interpol since August 2018 in connection with the same crimes as Nirav Modi.[5][6]

Modi is being investigated in a $2 billion fraud case[7][8] of Punjab National Bank (PNB) and is also being sued in the State of California for US$4.2 million for defrauding Los Angeles entrepreneur, Paul Alfonso, over two custom diamond engagement rings that turned out to be lab diamonds.[9][10] In March 2018, Modi applied for bankruptcy protection in Manhattan, New York.[11] In June 2018, Modi was reported to be in the UK and has applied for political asylum in Britain.[12]

Nirav Modi is the founder of "Nirav Modi Global Diamond Jewellery House", established in 2010. He was the first Indian jeweler to have been featured on the covers of Christie’s and Sotheby’s Catalogues. The company has its headquarters in Mumbai, India.

Biography

Early life

Nirav Modi was born in Palanpur, Gujarat, and grew up in Antwerp, Belgium. His family has been in the diamond business for several generations.[13][14] When he was 19, he and his father Deepak Modi moved to Mumbai to work in his uncle's business, Mehul Choksi, the head of Gitanjali Group, a retail jewellery company with 4,000 stores in India.[15][16]

Modi attended the Wharton School at the University of Pennsylvania but eventually dropped out.[17][18] While studying, he met his future wife, Ami, the daughter of a diamond businessman.[19]

Career

After moving to India in 1989, and training in all aspects of the diamond trading business, he founded Firestar in 1999 (Formerly known as Firestone), a diamond sourcing and trading company.[20] Firestar is the exclusive distributor of Rio Tinto’s Argyle pink diamonds in India.[21]

In 2002, his company started manufacturing jewellery on a contract basis. He acquired Frederick Goldman in 2005, and Sandberg & Sikorski and A.Jaffe in 2007 in the USA.[22]

In 2008, a close friend asked Nirav Modi to make a pair of earrings, after which he created the brand.[23] In 2010 he launched a diamond store bearing his name in New Delhi's Defence Colony, followed by one in Mumbai's Kala Ghoda. 17 other store openings followed across the world.[24]

He became well known after he designed his "Golconda Lotus Necklace" with an old, 12-carat, pear-shaped diamond as a centerpiece in 2010. The diamond was earlier sold in the 1960s; it was repolished.[25] It featured a lattice of white and pink diamonds. It was included on the cover of Christie’s catalogue in Hong Kong, and was auctioned for US$3.6 million in 2010.[26][27] In 2012, the Riviere of Perfection, featuring 36 flawless white diamonds weighing a total of 88.88 carats, was sold at Sotheby’s Hong Kong auction.[28][29]

In 2014, Nirav Modi opened his first flagship store at Defence Colony, New Delhi, followed by a store at Kala Ghoda, Mumbai in 2015. Nirav Modi launched globally with boutiques in New York City (on Madison Avenue, opened by Donald Trump Jr),[30]) and Hong Kong in 2015, followed by two other boutiques opened in Hong Kong in 2016.,[31] and one in MGM Macau in 2016.[32]

It had been reported that he was planning to sell some of his business to a well-known foreign brand and was also planning to raise funds through an initial public offering (IPO).[33]

It is believed that he was overextended for several years and used new MOUs to pay for the past ones for about seven year. One of his employees has stated that “He wanted to grow his business, and to do in five years what might otherwise have taken 20 years.” he claimed that “If he’d gone public, maybe he could have pledged his equity, raised some money, and finally paid the bank back. Perhaps he would have done that.” [34]

Dealings with Union Bank of India

The Union Bank of India sued Nirav Modi in a Hong Kong court. Union Bank claimed in a writ filed at the High Court on 26 September 2018 that Nirav Modi guaranteed two loans made to Firestone Trading Private on October 21, 2011 and Firestar Diamond on November 15, 2011. The bank demanded that Nirav Modi pay more than $5.49 million plus interest after both firms allegedly defaulted on repayments.[35]

2018 Investigation and Lawsuits (PNB fraud case) (Paul Alfonso vs. Nirav Modi, Firestone Diamond, Inc. and A. Jaffe, Inc.)

In February 2018, the Indian government's Central Bureau of Investigation launched an investigation on Modi, acting on a complaint from the Punjab National Bank that alleges Modi and his partners defrauded the bank for ₹280 Crore (approximately USD 40 million) by conspiring with bank officials to fraudulently obtain Letters of Undertaking (LoUs are undertaking provided by one bank to another bank) for making payments to overseas suppliers.[36] While ₹280 Crore is the fraud that has devolved to date, the potential liability of loss to Punjab National Bank goes up to ₹11000 crore. The Enforcement Directorate (ED) is looking into the case of fraud that the CBI has registered against Nirav Modi.[37]

A few of the Nirav Modi's stores remained open with business is as usual around the globe including the one at Marina Bay Sands in Singapore.,[38] however they have gradually all closed.[39] On 7 March 2018, Modi's firm Firestar Diamond Inc. applied for bankruptcy protection at a Manhattan bankruptcy court, in order to protect its assets in the United States and their revolving credit facility with Israel Discount Bank.[40]

Nirav Modi responded to the bank on February 15/16, 2018, stating that “In the anxiety to recover your dues immediately, despite my offer (on February 13, a day before the public announcement, and on 15) your actions have destroyed my brand and the business and have now restricted your ability to recover all the dues leaving a trail of unpaid debts”.[41] Nirav Modi estimated his domestic business at around Rs 6,500 crore, and said "this could have helped reduce/discharge the debt to the banking system," but claimed that this is now impossible as all his bank accounts have been frozen and assets have been seized.[42] Nirav Modi bought a Rs 900 crore sea-facing property in Mumbai's coveted Samudra Mahal properties with his wife Ami Modi.[43] His properties in India, including jewellery, paintings, and real estate, worth about Rs 523 crore (about $100 million) have been attached by the Enforcement Directorate.

The Enforcement Directorate (ED) attached four wind power plants, owned by Nirav Modi, in Rajasthan with a total capacity of 9.6 megawatt (MW). The plants earn up to Rs 5 crore a year due to share purchase agreement with Rajasthan's state electricity board. These wind power plants have been operational since 2014-15. In March 2018, the ED had attached a 5.24 MW solar power plant spread over 135 acres in Karjat in Ahmednagar district worth Rs 60 crore. In May 2018, the CBI and the ED had registered two FIRs each to probe the case. Both Nirav Modi and Mehul Choksi are said to have left the country before criminal cases were lodged against them. Nirav Modi is absconding and has not joined the ED probe.[44]

With the collapse of his brand, Nirav Modi's fortune has collapsed.[45] Forbes removed him from their annual billionaires list, and on March 9, 2018, estimated his current wealth to be less than $100 million. As a result of the fiasco, the RBI has stopped issuing LoUs and LoCs for imports,[46] resulting in limiting the financial flexibility of importers. His company, A.JAFFE, acquired through his Synergies Corporation, was auctioned in May 2018 and has been purchased by Parag Diamond.[47] All the stores have been since shut down.[48]

In April 2018, it was alleged Nirav Modi had found safe haven in Hong Kong.[49] In June 2018, Nirav Modi was reported to have arrived to the UK where he applied for asylum with Britain’s Home Office stating he was a victim of "political persecution" and denied any wrongdoing.[50][51][52]

On August 31, 2018, Los Angeles entrepreneur, Paul Alfonso, filed a US$4.2 million dollar civil lawsuit (Case No. 30-2018-01016380-CU-BC-CJC) in the Superior Court of California against Nirav Modi, Firestone Diamond, Inc. and A. Jaffe, Inc. for fraud, embezzlement and breach of contract. According to court records, Mr. Alfonso hired Nirav Modi to commission two custom diamond engagement rings worth in excess of US$200,000 that turned out to be fraudulent. Due to the complexity of the case, a case management conference is scheduled for January 11, 2019 at 9am in Department C19 at the Superior Court of California in Orange County. The presiding judge is Honorable Walter Schwarm. Mr. Alfonso also subsequently filed criminal complaints against Nirav Modi in Los Angeles and New York. The District Attorney's office in Los Angeles and New York have not filed criminal charges against Nirav Modi but are expected to do so in the coming weeks.

Achievements and Recognition

Personal life

Nirav Modi is married to Ami Modi, they have three children (two daughters and one son).[55][56] They met when both were students at the Wharton School of the University of Pennsylvania, although Modi himself dropped out after a year to return to the diamond business.[56][30]

Ami is a US citizen by birth.[57] In spite of having been a billionaire family, they have attempted to raise children conservatively, and they only use Gujarati in their home.[56] She ran the "Nirav Modi Scholarship for Excellence", which supported 250 students every year. After leaving India, they had been reported to have been living in a JW Marriott Essex House suite in New York City.

References

  1. ↑ "MODI, NIRAVA DEEPAK". Interpol.int. Retrieved 2 July 2018.
  2. ↑ "Nirav Modi Interpol profile".
  3. ↑ "Indian Jeweler Nirav Modi's Fortune Up In Smoke Amid Bank Fraud Allegations".
  4. ↑ "- INTERPOL". www.interpol.int. Retrieved 2018-08-30.
  5. ↑ "- INTERPOL". www.interpol.int. Retrieved 2018-08-31.
  6. ↑ "- INTERPOL". www.interpol.int. Retrieved 2018-08-31.
  7. ↑ "PNB fraud put at close to $2 billion". India Today. 27 February 2018. Retrieved 4 March 2018.
  8. ↑ "Eyes wide shut: the $1.8 billion Indian bank fraud that went unnoticed". Reuters.
  9. ↑ "PNB fraud: CBI seeks Interpol help, notice against Nirav Modi, others issued". India Today. 16 February 2018. Retrieved 4 March 2018.
  10. ↑ Becker, Vivienne (1 July 2016). "High jewellery with millennial attitude". How to spend it (Financial Times). Archived from the original on 11 July 2017.
  11. ↑ "India fraud probe drove Nirav modi's jeweler to U.S.Bankruptcy filing". www.bloomberg.com. Bloomberg News. Retrieved 9 March 2018.
  12. ↑ "Indian jeweller 'seeking asylum' in London". BBC News. 2018-06-11. Retrieved 2018-06-11.
  13. ↑ "Who is Nirav 'NiMo' Modi?". nationalheraldindia.com. Retrieved 4 March 2018.
  14. ↑ "નીરવ મોદીના છળ સામે હીરાનું તેજ ઝંખવાયું - Sambhaav News". sambhaavnews.com (in in). 22 February 2018. Retrieved 4 March 2018.
  15. ↑ Ganguly, Anwesha. "The billionaire who allegedly swindled $1.8 billion from an Indian bank". qz.com. Retrieved 4 March 2018.
  16. ↑ "Who is billionaire jeweller in fraud probe?". 16 February 2018. Retrieved 4 March 2018 – via www.bbc.co.uk.
  17. ↑ "Billionaire Jeweler Nirav Modi Investigated for Bank Fraud". The Diamond Loupe. 2018-02-12. Retrieved 2018-08-31.
  18. ↑ Nilima Pathak (18 February 2018). "Nirav Modi: When diamonds are not forever". Gulf News. Retrieved 8 May 2018.
  19. ↑ "Jewel Thief". The Telegraph. Retrieved 2018-08-31.
  20. ↑ Lall, Pavan (10 January 2015). "Can Nirav Modi win New York?" (PDF). Fortune India. Retrieved 7 September 2016.
  21. ↑ "Tacy LTD - ARGYLE PINK DIAMONDS PARTNERS WITH INDIAN JEWELRY MANUFACTURER". www.diamondintelligence.com. Retrieved 4 March 2018.
  22. ↑ Gauri Bhatia, Special to CNBC (10 June 2016). "Nirav Modi became a jewelry-design billionaire, without ever learning to draw". cnbc.com. Retrieved 4 March 2018.
  23. ↑ Kaul, Anuradha (1 April 2015). "The Bling Maestro" (PDF). Millionaire Asia. Retrieved 8 September 2016.
  24. ↑ "Indian diamond mogul Nirav Modi loses sparkle". Nikkei Asian Review. Retrieved 11 June 2018.
  25. ↑ "An interview with Nirav Modi: diamond collector and creator of exceptional Indian jewels". thejewelleryeditor.com. 4 June 2013. Retrieved 4 March 2018.
  26. ↑ Liu, Ming (30 September 2014). "Asian jewellery designers harbour global ambitions". Financial Times. Retrieved 8 September 2016.
  27. ↑ "Jewels: The Hong Kong Sale". 29 November 2010. Archived from the original on 18 September 2016.
  28. ↑ Rathore, Vijaya (24 January 2014). "Nirav Modi's Rs 50 cr diamond necklace to be the star of Sotheby's auction". Economic Times. Retrieved 6 September 2016.
  29. ↑ "Superb Diamond Necklace". Sothebys. 20 June 2012. Retrieved 6 September 2016.
  30. 1 2 "10 Facts About Nirav Modi, The Man At The Centre Of PNB Fraud". ndtv.com. Retrieved 4 March 2018.
  31. ↑ Saini, Mayu (22 September 2015). "Indian Jeweler Nirav Modi Opens New York, Hong Kong Stores". WWD. Fairchild Publishing, LLC. Retrieved 8 September 2016. (Subscription required (help)).
  32. ↑ Daswani, Kavita (19 September 2016). "Nirav Modi: the diamond master opens his first boutique in Macau". South China Morning Post. Retrieved 18 November 2016.
  33. ↑ "Nirav bet on stake sale, IPO to clear dues - Times of India ►". Retrieved 11 June 2018.
  34. ↑ "Did This Jeweler to the Stars Commit the Biggest Bank Fraud in India's History?". Retrieved 5 July 2018.
  35. ↑ "Union Bank sues Nirav Modi in Hong Kong court: Report". IANS India Private Limited. 27 September 2018. Retrieved 28 September 2018.
  36. ↑ Editorial, Reuters. "Indian billionaire jeweller investigated over bank fraud". U.K. Retrieved 2018-02-06.
  37. ↑ "Enforcement Directorate files money laundering case against billionaire jeweller Nirav Modi". Scroll.in. 15 February 2018. Retrieved 15 February 2018.
  38. ↑ "Business as usual at Nirav Modi's Singapore store". www.connectedtoindia.com. Retrieved 4 March 2018.
  39. ↑ "Nirav Modi at The Shoppes". www.marinabaysands.com. Retrieved 5 July 2018.
  40. ↑ "Firestar diamond inc. Case number 18-10509". http://www.firstpost.com. U.S.Bankruptcy court, Southern district of New York (Manhattan). Retrieved 9 March 2018. External link in |website= (help)
  41. ↑ "Nirav Modi's letter to PNB: Your actions destroyed my brand, closed all options to recover dues". 20 February 2018. Retrieved 5 July 2018.
  42. ↑ "'I urge you to be fair': Read Nirav Modi's full letter to Punjab National Bank". India Today. Retrieved 5 July 2018.
  43. ↑ Menon, Rashmi (2018-03-15). "Nirav Modi bought a Rs 900 crore sea-facing property in Mumbai's coveted Samudra Mahal". The Economic Times. Retrieved 2018-03-15.
  44. ↑ "PNB fraud case: ED attaches 4 wind power plants owned by Nirav Modi in Rajasthan". https://in.yahoo.com/?p=us. 30 May 2018. Retrieved 30 May 2018. External link in |website= (help)
  45. ↑ Cam, Deniz. "Indian Jeweler Nirav Modi's Fortune Up In Smoke Amid Bank Fraud Allegations". Retrieved 5 July 2018.
  46. ↑ "LoU ban to impact financial flexibility of importers: Ind-Ra". Retrieved 5 July 2018.
  47. ↑ "Parag Diamond is the winning bidder of Nirav Modi's company A Jaffe". Retrieved 5 July 2018.
  48. ↑ "Nirav Modi's businesses in Hong Kong may shut down". India Today. Retrieved 5 July 2018.
  49. ↑ "India wants fugitive billionaire Nirav Modi arrested in Hong Kong". South China Morning Post. Retrieved 2018-06-11.
  50. ↑ Editorial, Reuters. "Indian billionaire jeweler Nirav Modi flees to UK, claiming..." U.S. Retrieved 2018-06-11.
  51. ↑ "Billionaire jeweller Nirav Modi flees to UK, claiming political asylum: Report - Times of India". The Times of India. Retrieved 2018-06-11.
  52. ↑ "Indian celebrity jeweller flees to UK claiming political asylum". Financial Times. Retrieved 2018-06-11.
  53. ↑ Sharma, Purinma (23 February 2013). "On the rocks". The Times Of India. Archived from the original on 8 May 2013. Retrieved 7 September 2016.
  54. ↑ Newman, Jill (1 September 2015). "Kid rock". Robb Report. Retrieved 6 September 2016.
  55. ↑ "Interpol profile: Nirav Modi".
  56. 1 2 3 Farrell, Paul (16 February 2018). "Ami Modi, Nirav's Wife: 5 Fast Facts You Need to Know". heavy.com. Retrieved 4 March 2018.
  57. ↑ "જુઓ આવો છે કૌભાંડી નિરવ મોદીની પત્ની અમી મોદીનો વૈભવી ઠાઠ". 17 February 2018. Retrieved 5 July 2018.
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