Monishkumar Kirankumar Doshi Shah, a jeweler with operations in New Jersey and New York’s Diamond District, has been sentenced to 30 months in prison for evading customs duties and operating an unlicensed money transmitting business.
The schemes involved evading duties on over $13.5 million in imported jewelry and processing more than $10.3 million in illegal financial transactions, according to the U.S. Attorney’s Office for the District of New Jersey.
Customs Duty Evasion
Between December 2019 and April 2022, Shah orchestrated a scheme to avoid paying U.S. customs duties by misrepresenting the country of origin for jewelry imports. Goods originating in Turkey and India were shipped to Shah’s companies in South Korea, where labels were altered to make it appear that the jewelry came from South Korea. This misrepresentation enabled Shah to avoid the 5.5% duty that would have applied had the goods been shipped directly to the United States.
Shah and his associates created fake invoices and packing lists to support the fraudulent claims, and a third-party shipping company provided false information to U.S. Customs and Border Protection (CBP). The scheme resulted in the evasion of duties on approximately $13.5 million worth of imported jewelry.
Illegal Money Transmitting Business
From July 2020 to November 2021, Shah also operated an unlicensed money transmitting business through companies in New York’s Diamond District, including MKore LLC, MKore USA Inc., and Vruman Corp. Using these entities, Shah conducted more than $10.3 million in illegal financial transactions, such as converting cash into checks or wire transfers.
Shah also collaborated with other jewelry businesses to move funds and, at times, processed hundreds of thousands of dollars in a single day. None of these businesses were registered as money transmitting entities with state or federal regulators, including the Financial Crimes Enforcement Network (FinCEN).
Sentencing and Financial Penalties
U.S. District Judge Esther Salas sentenced Shah to 30 months in prison, ordered restitution of $742,500 for evading customs duties, and imposed a forfeiture of over $11.1 million related to the schemes. Shah will also serve two years of supervised release after completing his prison term.
Rahul Agarwal, Shah’s attorney, commented on the sentence: “Monish’s involvement in this activity ended over three years ago, well before the Government brought charges. He is extremely remorseful. He thanks his family and friends for their continued support, and he looks forward to returning to India upon completion of his sentence.”
Industry Implications
This case demonstrates the importance of compliance with customs regulations and transparency in financial transactions for jewelers. Noncompliance carries serious legal, financial, and reputational risks.
Jewelers are reminded to implement robust compliance practices, including verifying suppliers, maintaining accurate records, and ensuring adherence to licensing requirements. This case also highlights the role of regulatory agencies in addressing fraud and maintaining fair practices within the jewelry trade.
