Fugitive accused in $2B bank scam may have hid money on Central Park South

Indian diamond mogul Nirav Modi made suspicious moves at Essex House and Ritz-Carlton residences

New York Weekend Edition /
Sep.September 02, 2018 12:00 PM

Nariv Modi with the Residences at the Ritz-Carlton and Essex House (credit: Wikimedia Commons)

Indian diamond mogul Nirav Modi, accused of orchestrating the $2 billion Punjab National Bank scam, may have used his New York City apartment to launder money.

Modi, a fugitive on the run from Indian authorities and Interpol, is accused of defrauding the state-run bank by using phony guarantees to raise foreign credit.

Shortly before fraud charges were brought in India, Modi transferred an apartment he owns at the Essex House on Central Park South from an LLC that filed for bankruptcy in January this year to another he controlled with his wife, Indian news website the Wire reported.

“Because of the timing of this insider transaction so close in time to the bankruptcy filing, the backdrop of this fraud-related case, and the ease of using luxury real estate as a means to launder money, the Examiner views the ownership of the apartment and subsequent sale in January 2018 as suspect,” the court-appointed examiner the bankruptcy case wrote.

Modi bought the apartment for $5 million in 2007, and paid off his HSBC mortgage on the property shortly before transferring it.

Another LLC controlled by Modi bought a $25 million apartment last September at the Residences at the Ritz Carlton at 50 Central Park South all-cash. [The Wire] — Rich Bockmann


Related Articles

arrow_forward_ios
A photo illustration of Gainesville Mayor Harvey Ward and Gainesville, Florida (Getty, Harvey Ward)
NIMBYs triumph in Florida upzoning battle
NIMBYs triumph in Florida upzoning battle
25 Cactus, Irvine, CA and Albert Pujols
Albert Pujols lists Irvine mansion for $10M
Albert Pujols lists Irvine mansion for $10M
Fromk left: Mauricio Umansky, Christian Ulbrich, and Scott Rechler
They said what now? Real estate quotes of the week
They said what now? Real estate quotes of the week
RXR's Scott Rechler, Tamir Shemesh, Richard Meruelo, and Maria Meruelo (Getty, Serhant, Coldwell Banker)
Breakups, layoffs and walkaways: No love in real estate last week
Breakups, layoffs and walkaways: No love in real estate last week
Connecticut proposal would convert empty box stores into housing
Connecticut proposal would convert empty box stores into housing
Connecticut proposal would convert empty box stores into housing
(Photo Illustration by The Real Deal with Getty Images)
The housing correction is a tale of two markets
The housing correction is a tale of two markets
A photo illustration of Manhattan Borough President Mark Levine (Getty, Office of Mark Levine)
Map: Here’s a treasure trove of Manhattan resi development sites
Map: Here’s a treasure trove of Manhattan resi development sites
Albany buildings
How Albany is dealing with its 1K vacant buildings
How Albany is dealing with its 1K vacant buildings
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...