Monishkumar Kirankumar Doshi Shah, a jeweler operating in New York City’s Diamond District, has admitted to evading customs duties on over $13.5 million of imported jewelry.
Shah, 39, who has residences in Jersey City, New Jersey, and Mumbai, India, pleaded guilty to charges of conspiracy to commit wire fraud and operating an unlicensed money transmitting business in a federal court in Newark. According to U.S. Attorney Philip Sellinger, the offenses occurred between December 2019 and April 2022.
Scheme Details
To avoid the 5.5% customs duty on direct jewelry imports to the United States, Shah arranged for goods from Turkey and India to be shipped to his companies in South Korea. There, shipments were relabeled to falsely indicate South Korea as the origin before being sent to the United States. This misrepresentation was supported by falsified invoices and packing lists, and Shah directed a shipping company to provide incorrect information to U.S. Customs and Border Protection.
Shah’s activities extended beyond customs evasion. Between July 2020 and November 2021, he operated several jewelry businesses, including MKore, MKore USA, and Vruman, to conduct unauthorized financial transactions. Over $10.3 million in cash was converted into checks or wire transfers for customers. These businesses were not registered as money transmitting entities, violating state and federal regulations.
Financial Consequences and Legal Ramifications
As part of his plea agreement, Shah will pay $742,500 in restitution to U.S. Customs and forfeit $11.13 million related to his activities. He could face up to 20 years in prison for wire fraud conspiracy and an additional five years for operating an unlicensed money transmitting business. Each count may also result in a fine based on the financial impact of the offense.
Sentencing is scheduled for January 2025. The investigation was conducted with cooperation from multiple federal and local agencies, including the IRS-Criminal Investigation, Homeland Security, and U.S. Customs and Border Protection.
Implications for the Jewelry Industry
This case highlights the importance of adhering to legal and ethical standards in the jewelry business. Non-compliance with customs regulations and financial laws can lead to significant penalties, reputational damage, and business disruptions. Ensuring proper registration and accurate reporting is crucial for maintaining industry standards.
