12 NJ “Cash For Gold” Shops Busted in Undercover Sting
An undercover operation dubbed "Operation Going for Gold" led authorities to level charges against 12 jewelry purchasing shops in New Jersey.
Undercover investigators visited the shops, brought items and offered to sell them at the shops, observing the jewelers for potential violations.
The investigation uncovered multiple abuses at the hands of the "Cash for Gold" shops against the customers who were trading in jewelry for cash.
“When consumers choose to part with their jewelry in exchange for cash, it is often a difficult decision made during hard economic times,” Attorney General Jeffrey S. Chiesa said in a news release. “Our laws protect those consumers, by helping to ensure transparency by jewelers who price, weigh, and evaluate the precious metals brought in by individuals seeking to sell them. Jewelers who fail to comply with these laws will be held accountable.”
One hundred seventy-one civil complaints were filed and 30 municipal code violations were discovered. In some cases, the companies used uncertified scales or unapproved scales to weigh the gold. In other cases, the buyers failed to measure the jewelry in plain view of the seller, while some gold-buyers failed to issue proper receipts for the purchased merchandise. Some shops failed to have prices posted for precious metals inside their stores, in accordance with the law.
List of NJ Jewelers Accused of Violations:
- Bayar Jewelers in the Jewelry Exchange
- D'Malke Jewelers in the Wayne Diamond and Jewelry Exchange Center
- Gallo Jewelry in the Wayne Diamond and Jewelry Exchange Center
- Jewelry by Eric, in the Jewelry Exchange
- Jewelry by Jakup in the Wayne Diamond and Jewelry Exchange
- Jewelry by Marcus at Route 46 East
- Kemerli Millenium International at the Wayne Diamond and Jewelry Center
- M.A. Jewelers in the Wayne Diamond and Jewelry Exchange
- Obsession Diamonds in the Jewelry Exchange
- Pink Diamond in the Wayne Diamond and Jewelry Exchange Center
- Six Stars Jewelers in the Jewelry Exchange
- Verdi Jewelry in the Wayne Diamond and Jewelry Exchange Center
The undercover operation was a group effort among The NJ Division of Consumer Affairs, the State Office of Weights and Measures, the Passaic County Prosecutor's Office and the Wayne Police Department.
Some tips for consumers:
- Make sure any weighing of jewelry is done in front of you.
- Check the scale, it should have a blue NJ Office of Weights and Measures sticker.
- Prices for precious metals must be posted clearly in the establishment.
- Make sure you receive a detailed, signed sales receipt.
- After the sale, the buyer is required to keep the item for at least two business days.
Consumers who believe they have been cheated or scammed by a business can file a complaint with the State Division of Consumer Affairs here or by calling 1-800-242-5846 or 973-504-6200. Consumers can contact the State Office of Weights and Measures directly at 732-815-4840.