3 US firms linked to Nirav directly involved in bank fraud, says report

MUMBAI/NEW YORK: Three bankrupt US companies with links to billionaire jeweller Nirav Modi were “directly involved” in transactions related to the alleged multibillion-dollar international fraud for which Modi has been charged by Indian authorities, according to an investigation by the court-appointed examiner.

The examiner, John J Carney, found “substantial evidence” that senior officers and directors at Firestar Diamond Inc., A. Jaffe Inc. and Fantasy Inc. had knowledge of and involvement in the criminal conduct alleged by Indian officials. The “intensive” 120-day investigation found substantial evidence to support the conclusion by Indian officials that the companies and their top officials were involved in the activities, according to the report that was filed on Saturday.

The examiner has identified tens of millions of dollars of purported diamond sales by the debtors to various shadow entities, where payment can be traced to proceeds from the alleged bank fraud, it said. The findings of the examiner in the US court will likely bolster the Indian government’s case against the fugitive diamond merchant. UK authorities have confirmed to India that Modi has been located in the UK and British officials have asked India for documents necessary to make a provisional arrest, India Today TV reported August 23.