21 ‘cash-for-gold’ stores cited in NJ crackdown

Avenel, N.J.--A recent investigation by the New Jersey Division of Consumer Affairs on “cash-for-gold” retailers has resulted in 936 civil citations at 21 stores for alleged violations of state consumer laws, spurring a year-long investigation by state authorities.

The department’s Office of Weights and Measures--along with the Essex County Prosecutor’s Office, Middlesex County Prosecutor’s Office, Edison Police Department, and the Fairfield Police Department—recently conducted an investigation across northern and central New Jersey, which included undercover visits to jewelry stores by officers who posed as consumers that were looking to sell their jewelry.

Alleged offenses include failure to post the prices offered, failure to maintain receipts with required information, and failure to keep the scale in plain view of the seller, among other things.

The civil violations against the stores were filed as summonses in municipal court, according to the DCA. Each violation carries a penalty of between $500 and $1,000.

Two jewelers also currently face criminal charges related to the investigation.

International Gold Buyers in Edison, N.J., was cited for 209 violations in the investigation, according to the NJ DCA release. Owner Rakesh Loorkhoor is also charged with hindering and receiving stolen property.

A second store owner, Robert Tudor, of another Edison store called Tudor Jewelry, has also been charged with receiving stolen property, though his shop was not one of the 21 listed in the NJ DCA’s release as being cited for violations.

Neither jeweler could be reached for further comment on the charges by press time, though Loorkhoor reportedly told local news sources that he believes he followed the rules, and that he disputed the number of violations he is facing.

With the announcement of the citations, the Division of Consumer Affairs said that it will launch a statewide, year-long investigation that will include both undercover operations as well as unannounced inspections at jewelry shops that buy precious metals from consumers.

“Especially now that the price of gold appears to be rising, we are focusing on the integrity of those businesses that attract consumers who may face financial hardships with the promise of cash for gold, silver and precious jewelry,” said Division of Consumer Affairs Acting Director Steve Lee. “This enforcement action is just the beginning of a year-long focus to ensure jewelry stores comply with our cash-for-gold laws.”