News Karnataka
Tuesday, April 23 2024

Indian-American Jeweller Charged In Multi-Million Dollar Trade Fraud

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Washington: A jeweler of Indian origin has been charged with violating customs regulations and operating unlicensed money transmitting enterprises in the United States, according to a statement by a US attorney.

The individual, identified as Monishkumar Kirankumar Doshi Shah (39), who operates between Mumbai and New Jersey, was apprehended over the weekend. He appeared before US Magistrate Judge André M Espinosa in the Newark federal court on February 26.

Shah, also known as “Monish Doshi Shah,” was granted release on a $100,000 bond, coupled with home detention and location monitoring.

He faces charges outlined in a complaint, including conspiracy to commit wire fraud and operating, as well as aiding and abetting, an unlicensed money transmitting business.

According to legal documents, between January 2015 and September 2023, Shah allegedly devised a scheme to avoid paying duties on jewelry shipments from Turkey and India to the US. These shipments, which would typically incur around a 5.5 percent duty if sent directly to the US, were redirected to Shah’s companies in South Korea.

Prosecutors claim that Shah and his associates in South Korea would alter the jewelry labels to indicate they originated from South Korea instead of Turkey or India. The jewelry would then be sent to Shah or his US-based customers, thus bypassing the duty requirements unlawfully.

Additionally, Shah purportedly fabricated invoices and packing lists, making it appear as if his South Korean companies were sourcing jewelry from Turkey or India.

During the period of the alleged scheme, Shah is accused of shipping millions of dollars worth of jewelry from South Korea to the US.

Between July 2020 and November 2021, Shah is said to have operated several jewelry companies in New York City’s Diamond District, including MKore LLC, MKore USA Inc., and Vruman Corp.

These entities were allegedly utilized for conducting illegal financial transactions, including cash-to-check or wire transfer conversions, on behalf of customers.

Shah would reportedly collect cash payments from customers and use affiliated jewelry companies, also located in the Diamond District, to facilitate the conversion of cash into checks or wire transfers.

According to the legal documents, Shah and his associates were involved in moving more than a million dollars in cash on some occasions. They purportedly charged fees for these services.

Prosecutors highlighted that none of Shah’s or his associates’ companies were registered as money transmitting businesses with the relevant authorities.

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