Indian Man Sentenced to 30 Months in US Prison for Evading Customs Duties on Jewelry
Indian Man Sentenced to Prison for Jewelry Importing Scheme
An Indian man, Monishkumar Kirankumar Doshi Shah, has been sentenced to 30 months in prison for evading customs duty and illegally processing money through an unlicensed money transmitting business in the United States. Shah, who ran jewellery companies in New York, was found guilty of importing jewellery worth over USD 13.5 million and conducting illegal financial transactions exceeding USD 10.3 million.
Customs Duty Evasion Scheme
According to court documents, Shah engaged in a scheme to evade duties for shipments of jewellery from Turkey and India to the United States between December 2019 and April 2022. He would ship goods from Turkey or India to one of his companies in South Korea, where the labels on the jewellery would be changed to falsely indicate they were from South Korea. The jewellery would then be shipped to Shah or his customers in the United States, evading the required duty of approximately 5.5 percent.
Shah instructed his customers to create fake invoices and packing lists to make it appear as though the jewellery was ordered from Turkey or India by his South Korean companies. Additionally, false information was provided to US Customs and Border Protection about the origin of the jewellery. Shah managed to ship approximately USD 13.5 million worth of jewellery to the US without paying the appropriate duty during the specified period.
Illegal Financial Transactions
In addition to the customs duty evasion scheme, Shah also owned and operated multiple jewellery companies in New York City’s Diamond District from July 2020 to November 2021. He used these companies to facilitate over USD 10.3 million in illegal financial transactions for customers. Shah collected cash from customers and utilized other individuals’ jewellery companies to convert the cash into wires or checks. Members of the money transmitting business, including Shah, moved hundreds of thousands of dollars in a single day, charging fees for their services.
Sentencing and Restitution
Acting US Attorney Vikas Khanna confirmed that Shah pleaded guilty to conspiracy to commit wire fraud and operating an unlicensed money transmitting business. US District Judge Esther Salas sentenced Shah to 30 months in prison, ordered restitution of USD 742,500 for the wire fraud scheme, and forfeiture of USD 11,126,982.33 for the wire fraud and unlicensed money transmitting schemes. Additionally, Shah will serve a two-year term of supervised release following his prison sentence.
Overall, Shah’s actions in evading customs duty and conducting illegal financial transactions have led to significant legal consequences. The case serves as a reminder of the consequences of engaging in fraudulent schemes and illegal financial activities in the United States.