A McLean man has been sentenced to a year and nine months in prison for running a $1.2 million luxury watch fraud scheme.
From November 2022 through June 2024, Jaivin Raj Karnani, 45, used multiple American Express card accounts to order luxury watches and other products. He ordered the goods from Harrods Limited, a luxury department store in London. Karnani would also use fake names, such as Quinn Bash and Steve Johnson, to open new accounts.
Once Karnani was in possession of the watches, he would dispute the charges with American Express in order to have them removed from his statement. Once the charge cleared, he would then sell the watches to dealers in Michigan and New York.
“This case demonstrates how the abuse of consumer-protection systems inflicts widespread financial harm – driving up costs, eroding trust, and burdening honest businesses. The Eastern District of Virginia will hold accountable anyone who exploits these safeguards to enrich themselves at others’ expense,” Lindsey Halligan, U.S. Attorney for the Eastern District of Virginia, said in a press release.
Karnani falsely discharged $1,280,647.99 worth of luxury watches. His scheme resulted in more than $850,000 in losses to American Express and more than $426,000 in losses to Harrods. Civil disputes were also brought against the McLean resident when he abused American Express’ charge-back process to reverse legal fees owed to several of his lawyers.
In addition to jail time, Karnani must forfeit $1,280,647.99 and 23 luxury watches, including Rolex, Chanel, and Omega, seized from his McLean home.
Feature image courtesy malajscy/sotck.adobe.com
