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Bloomberg
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. 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 will likely bolster the Indian government’s case against the fugitive diamond merchant.
UK authorities have confirmed to India that Modi has been located in the UK and British officials have asked India for documents necessary to make a provisional arrest, India Today TV reported.
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.