A Tysons man will spend nearly two years in prison for fraudulently claiming that he didn’t receive more than $1 million in luxury watches he had ordered, when he was actually attempting to resell them for profit.
Jaivin Raj Karnani, 45, was sentenced Thursday (Jan. 8) to one year and nine months in prison after pleading guilty to one count of mail fraud, announced federal prosecutors with the U.S. Attorney’s Office for the Eastern District of Virginia.
He must also forfeit more than $1.2 million and 23 watches that were seized from his residence, according to court records.
Between November 2022 and June 2024, Karnani purchased and received nearly two dozen watches — brands like Rolex, Moser, Oris and others — from Harrods, a London-based department store. Despite receiving the watches, he fraudulently contested the charges, according to a statement of facts.
“After the luxury watches arrived, Karnani would initiate a dispute with American Express in an attempt to have the charges for the watches removed from his statement and balances due, while Karnani actually had received the watches and intended to sell them for money,” the document says.
Karnani used his own name and two aliases to carry out the scheme, which was uncovered last April after a search warrant was executed at his residence.
In all, Karnani fraudulently discharged more than $680,000 under the claim that he didn’t receive watches that he had ordered. He attempted to discharge an additional amount of nearly $1 million, but those charges were unsuccessfully disputed.
“This case demonstrates how the abuse of consumer-protection systems inflicts widespread financial harm – driving up costs, eroding trust, and burdening honest businesses,” U.S. Attorney Lindsey Halligan said in a press release. “The Eastern District of Virginia will hold accountable anyone who exploits these safeguards to enrich themselves at others’ expense.”
Halligan’s status as the acting U.S. attorney for eastern Virginia has been challenged by courts, with a federal judge ordering the Department of Justice last week to explain why she remains in the role after another judge declared her appointment unlawful in November.
Photo via Daniel Hay on Unsplash
