Diamond District: Five Charged over $600m Illegal Money Transfers
September 13, 23
(IDEX Online) - Five men have been charged with using companies based in New York City's Diamond District to process over $600m in illegal money transfers.
They are accused of using numerous diamond, gold, and jewelry companies as fronts to conduct hundreds of millions of dollars in illegal financial transactions for customers - including converting cash to checks or wire transfers - in exchange for substantial fees.
At times, they moved millions of dollars in cash in a single day, said the US Attorney's Office, District of New Jersey.
Among the companies allegedly used as fronts were Arya Diamond Jewellery USA Inc., trading as "Karats & Carats," Diamspark LGD LLC, Royal Diamonds LLC, Raj Gold and Diamond LLC, Royal Arya Jewellery Inc, and Raj Gold and Diamond Inc.
None of them was registered as money transmitting businesses with New York, New Jersey, or the Financial Crimes Enforcement Network (FinCEN).
Raj Vaidya, 26; Rakesh Vaidya, 51; Shrey Vaidya, 23; and Neel Patel, 26, all of Edison, New Jersey; and Youssef Janfar, aka "Joe Rodeo," 57, of Great Neck, New York, are each charged by complaint with one count of operating and aiding and abetting the operation of an unlicensed money transmitting business.
They appeared before US Magistrate Judge Edward S. Kiel in Newark federal court and were released on unsecured bond.
General view of New York Diamond District