US firms linked to Indian billionaire Nirav Modi ‘directly involved’ in international fraud
Investigation finds evidence to support conclusion by Indian officials that companies and their top officials were involved in criminal activities
Three bankrupt US companies with links to Indian billionaire 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 is likely to bolster the Indian government’s case against the fugitive diamond merchant. British authorities have confirmed to India that Modi has been located in Britain and British officials have asked India for documents necessary to make a provisional arrest, India Today TV reported on Thursday.
The US court examiner also determined it is “highly likely” that Firestar and A. Jaffe Chief Executive Officer Mihir Bhansali and Chief Financial Officer Ajay Gandhi were involved in assisting in the transactions necessary to the alleged fraud.
Documentary and witness evidence suggest that Bhansali was a key participant in the alleged fraudulent circumstances and worked closely with Modi to accomplish its execution, the report said. His involvement was not limited to control of the debtors and other US Firestar entities but extended to oversight of the shadow entities, Firestar overseas affiliates and the Modi firms, it added.
