In a significant development, an Indian jeweller, Monishkumar Kirankumar Doshi Shah, finds himself in legal trouble in the United States. Shah, based in both Mumbai and New Jersey, was arrested over the weekend on charges of illegally evading customs duties for millions of dollars of jewelry imports into the US and operating unlicensed money-transmitting businesses.
Shah, also known as “Monish Doshi Shah,” appeared before US Magistrate Judge Andr M Espinosa in the Newark federal court on February 26. Despite a bond of USD 100,000, with home detention and location monitoring, Shah faces serious charges. The complaint includes one count of conspiracy to commit wire fraud and one count of operating, aiding, and abetting the operation of an unlicensed money-transmitting business.
According to documents, Shah engaged in a scheme from January 2015 through September 2023 to evade duties for shipments of jewelry from Turkey and India to the US. The modus operandi involved shipping goods from Turkey or India to one of Shah’s companies in South Korea, where labels were changed to state that the jewelry originated from South Korea. This maneuver unlawfully evaded the duty of approximately 5.5% that would apply if shipped directly to the US.
Federal prosecutors allege that Shah’s conspirators in South Korea played a pivotal role in altering labels and shipping the jewelry to Shah or his customers in the US. The deception extended to creating fake invoices and packing lists to make it appear as if Shah’s South Korean companies were legitimately ordering jewelry from Turkey or India.
During the illicit scheme, Shah allegedly shipped millions of dollars worth of jewelry from South Korea to the US. From July 2020 through November 2021, he operated multiple purported jewelry companies in New York City’s Diamond District, including MKore LLC, MKore USA Inc., and Vruman Corp.
These entities became conduits for illegal financial transactions, converting cash to checks or wire transfers for customers. Shah’s operations included collecting cash from customers, using conspirators’ jewelry companies in the Diamond District to convert the cash into wires or checks. Prosecutors claim that Shah and his conspirators moved more than a million dollars in cash on certain days, charging fees for their services.
Crucially, none of Shah’s or his conspirators’ companies were registered as money-transmitting businesses with New York, New Jersey, or the Financial Crimes Enforcement Network, as per the documents.
The arrest and charges against Monishkumar Kirankumar Doshi Shah highlight the significance of adherence to customs regulations and financial laws. The case underscores the need for vigilance in tracking and prosecuting illicit financial activities, especially within industries where large transactions are commonplace. As legal proceedings unfold, the consequences for Shah could be substantial, making this a story of considerable impact on the intersection of international trade, finance, and the jewelry industry.