On Sept. 10, Monishkumar Kirankumar Doshi Shah, the owner of three jewelry businesses, pleaded guilty in New Jersey federal court to one count of conspiracy to commit wire fraud and one count of operating an unlicensed money-transmitting business, according to a statement from the U.S. Attorney’s office.
Shah, a resident of New Jersey and Mumbai, has owned three companies in New York City’s Diamond District: MKore, MKore USA, and Vruman Corp.
According to the charges, which were filed in February, from December 2019 through April 2022, Shah evaded duties on $13.5 million worth of jewelry that originated in Turkey and India. Direct jewelry imports from those countries into the United States are typically subject to a 5.5% duty. Shah attempted to get around paying that by having the items shipped to South Korea first, the filing said.
In addition, the government said, Shah instructed customers to make invoices and packing lists look like his South Korean companies had ordered the jewelry from Turkey or India or like the items were produced in South Korea. He also allegedly had a third-party shipping company provide false information to U.S. Customs and Border Protection (CBP) about the jewelry’s origin.
The charges also said that Shah would, for a fee, convert cash from customers to wires or checks and that his money-transmitting operation sometimes moved hundreds of thousands in cash a day. His companies were not registered as money-transmitting businesses with New York, New Jersey, or the Financial Crimes Enforcement Network (FinCEN), the statement said.
As part of his plea deal, Shah agreed to pay $742,500 in restitution to CBP and forfeit $11.3 million for his participation in unlicensed money transfers. He also faces jail time, and will be sentenced in January 2025.
Shah’s lawyer Rahul Agarwal tells JCK: “Mr. Shah’s involvement in this activity ended over two years ago. He is extremely remorseful, and he plans to repay the government in full for its losses. He looks forward to moving beyond this case and to returning home to be with his family.”
(photo: Getty Images)
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