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NJ Jeweler Pleads Guilty to $13.5 Million Customs Evasion Scheme September 19, 2024 (0 comments)
New York, NY--A New Jersey jeweler has pleaded guilty to evading customs duties on over $13.5 million worth of imported jewelry. Monishkumar Kirankumar Doshi Shah, 39, of Jersey City and Mumbai, India, admitted in Newark federal court to conspiracy to commit wire fraud and operating an unlicensed money transmitting business, according to U.S. Attorney Philip Sellinger.
[Image via istockphoto.com]
According to a report in 101.5 Shah managed several jewelry companies in New York City's Diamond District and avoided paying customs duties between December 2019 and April 2022. Prosecutors indicated that other jewelers from Edison, New Jersey, and Long Island, New York, were also involved in the scheme.
To bypass the 5.5% duty on direct imports to the United States, Shah had goods from Turkey and India shipped to his companies in South Korea. Workers there relabeled the shipments to appear as originating from South Korea before sending them to the U.S. He created fake invoices and packing lists and instructed a shipping company to misrepresent the jewelry's origin to U.S. Customs and Border Protection.
The report stated that between July 2020 and November 2021, Shah processed over $10.3 million through an unlicensed money transmitting business. Operating companies such as MKore, MKore USA, and Vruman in Manhattan, he converted cash into checks or wire transfers for customers, charging fees for these transactions. None of his businesses were registered as money transmitting entities with state authorities or the Financial Crimes Enforcement Network.
As part of his plea agreement, Shah agreed to pay $742,500 in restitution to U.S. Customs and forfeit $11.13 million related to the schemes.
The report noted that Shah faces up to 20 years in prison for the wire fraud conspiracy charge and up to five years for operating an unlicensed money transmitting business. Each count also carries a maximum fine of $250,000 or twice the gain or loss from the offense, whichever is greater.
Sentencing is scheduled for January 2025.
Learn more in this report by 101.5.