NJ Businessman Pleads Guilty to Multimillion-Dollar Jewel Trade Fraud

India- and New Jersey-Based Jeweler Admits Multimillion-Dollar International Trade Fraud Scheme and Unlicensed Money Transmitting.Photo byMorristown Minute

Monishkumar Doshi Shah pleads guilty to evading customs duties and operating an unlicensed financial business in New York’s Diamond District.

Newark, NJ — In a stark revelation of international trade fraud, Monishkumar Kirankumar Doshi Shah, a businessman based in both India and New Jersey, confessed to orchestrating a multimillion-dollar scheme to dodge U.S. customs duties on imported jewelry and illicitly operating a substantial money-transmitting operation. Shah's admission came during his appearance before U.S. District Judge Esther Salas in federal court in Newark, where he faced charges that could lead to a combined maximum sentence of 25 years in prison.

Intricate Web of Deceit

From December 2019 to April 2022, Shah exploited global trade mechanisms to avoid paying over $13.5 million in customs duties by rerouting jewelry shipments through South Korea. Originally shipped from Turkey and India, where they would incur a 5.5 percent duty, these goods were relabeled in South Korea to appear as originating there, effectively sidestepping U.S. duties.

Furthermore, Shah's fraudulent activities extended into the heart of New York City's Diamond District, where he operated multiple jewelry businesses. From July 2020 through November 2021, these entities facilitated over $10.3 million in unlawful financial transactions. Shah and his accomplices converted large sums of cash into checks or wire transfers for their clients, charging fees for these unregistered services.

Legal Ramifications and Restitution

As part of his plea agreement, Shah has committed to paying $742,500 in restitution to the U.S. Customs and Border Protection and forfeiting $11.13 million. The plea outlines significant penalties, reflecting the severity of the charges: a maximum of 20 years for wire fraud conspiracy and five years for operating an illegal money-transmitting business. Each charge also carries a possible fine of $250,000 or double the monetary gain or loss from the offenses, whichever is greater. Shah's sentencing is scheduled for January 23, 2025.

Extensive Investigation and Collaborative Efforts

U.S. Attorney Philip R. Sellinger highlighted the extensive multi-agency investigation that led to Shah's guilty plea, involving efforts from the IRS, Homeland Security Investigations, and U.S. Customs and Border Protection among others. The case was part of an Organized Crime Drug Enforcement Task Forces operation, emphasizing an intelligence-driven, multi-agency approach to dismantle high-level criminal organizations.

Implications for the Jewelry Trade

This case sheds light on the vulnerabilities within the international jewelry trade and financial sectors, underscoring the need for stringent oversight and enforcement to protect legitimate business practices and federal interests. The legal community and regulatory bodies continue to monitor these industries closely, ensuring compliance and integrity in international commerce and finance.

The U.S. Attorney's office also reminded that the charges and allegations are merely accusations, and the defendant is presumed innocent unless and until proven guilty. This case serves as a significant reminder of the consequences of circumventing U.S. laws intended to protect economic interests and uphold market integrity.

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