A McLean resident used multiple American Express accounts that bilked the credit card company and Harrods out of more than $1.2 million in luxury watches.
A McLean, Virginia, resident was sentenced Thursday to a year and nine months in federal prison for mail fraud after prosecutors say he carried out a sprawling luxury watch scam.
Jaivin Raj Karnani, 45, used multiple American Express accounts — including two cards under his mother’s name, according to court documents — that bilked the credit card company and a famed London retailer out of more than $1.2 million in luxury watches.
“This case demonstrates how the abuse of consumer-protection systems inflicts widespread financial harm — driving up costs, eroding trust and burdening honest businesses,” Lindsey Halligan, U.S. Attorney for the Eastern District of Virginia, said in a statement.
Prosecutors said Karnani used American Express cards to buy watches from Harrods Limited, the iconic London department store known for its upscale brands.
But, once the watches were delivered to his McLean home, Karnani falsely reported to American Express that he never received them, all in order to trigger credit card disputes and erase the charges.
Karnani placed orders under his own name, as well as under aliases like “Quinn Bash” and “Steve Johnson,” and then tried to resell the watches to luxury dealers in Michigan and New York, prosecutors said.
How the scam unfolded
Between late 2022 and mid-2024, federal authorities said Karnani falsely charged roughly $1,280,648 worth of luxury watches — including brands like Rolex, Gucci, Omega, Chanel, Tudor and Porsche Design.
After disputing the charges with American Express, the disputes ultimately led to more than $850,000 in losses for the credit card company and more than $426,000 in losses for Harrods.
The scheme also included an abuse of the charge-back process tied to legal fees, which prosecutors said later resulted in civil judgments against Karnani.
In addition to his federal prison sentence, Karnani must forfeit the full amount of the fraudulent purchases — $1,280,647.99 — and 23 luxury watches seized from his McLean residence, officials said.
