State Announces Charges Against Somerset County “Cash For Gold” Shops

John J. Hoffman

Acting Attorney General John J. Hoffman

SOMERVILLE – New Jersey Acting Attorney General John J. Hoffman, Somerset County Prosecutor Geoffrey D. Soriano, and State Division of Consumer Affairs Director Eric T. Kanefsky today announced criminal and civil charges against the operators of Somerset County jewelry shops, resulting from a joint “cash-for-gold” undercover sting called “Operation Somer Gold.”

Undercover investigators from the Somerset County Prosecutor’s Office, New Jersey Office of Weights and Measures, and Somerset County Weights and Measures visited a total of eight cash-for-gold shops in Bound Brook, Franklin Park, Franklin Township, and Green Brook. The investigators brought items of jewelry and offered to sell them at the stores, while observing whether the jewelers followed state laws intended to protect consumers who seek to sell their precious metals – as well as laws intended to protect against the sale of stolen goods.

Hoffman said, “New Jersey’s cash-for-gold laws remove an avenue for burglars who profit by stealing precious items from law-abiding citizens. They also protect consumers who make the difficult decision, often during hard economic times, to part with their jewelry in exchange for cash.”

As a result of the investigation, the owners of two shops now face criminal charges filed by the Somerset County Prosecutor’s Office. Highland Park resident David Rubin, 55, the owner of Cash4Gold/Wireless Source in Franklin Township, is charged by the Somerset County Prosecutor’s Office with third-degree receiving stolen property, and with third- and fourth-degree attempted receipt of stolen property. He allegedly was found to be knowingly in possession of property that had been stolen during residential and commercial burglaries.

South Plainfield resident Michal Khalaf, 51, owner of Khalaf Jewelry in Bound Brook, is charged by the Somerset County Prosecutor’s Office with second-degree conducting unlawful credit practice. After receiving a gold item from an undercover investigator, he allegedly attempted to pawn it at an annual interest rate exceeding 300 percent. Soriano said Khalaf was not licensed by the State to operate as a pawn broker.

Soriano said, “Joint operations such as this bring together the State and County Offices of Weights and Measures, which focus on protecting consumers who sell their jewelry, with criminal law enforcement, enabling us to identify and stop businesses that knowingly buy stolen property – especially items that are stolen during residential burglaries.”

In addition to the criminal charges, a total of four shops – including Cash4Gold/Wireless Source – are charged with civil violations, for allegedly failing to abide by New Jersey’s cash-for-gold consumer protection laws. Cash4Gold/Wireless Source was charged in the Franklin Township Municipal Court with 30 civil violations; Venus Jewelers was charged in Franklin Township Municipal Court with 439 civil violations; Las Americas was charged in the Bound Brook Municipal Court with 87 civil violations; and Hillsborough Rare Coins was charged in the Green Brook Municipal Court with 27 civil violations.

Each civil violation carries a maximum penalty of $500.

“Consumers deserve clear and accurate information when they shop around for the best value for their family’s jewelry. That’s why the Office of Weights and Measures certifies the scales, ensures jewelers test and weigh precious metals right in front of the consumer, and that they provide a detailed receipt about the items purchased,” Eric T. Kanefsky, Director of the New Jersey Division of Consumer Affairs. “I commend the Somerset County Prosecutor’s Office and the Somerset County Office of Weights and Measures for their proactive participation in this investigation.”

To help ensure consumers are not cheated when they sell precious metals, New Jersey law requires, among other things, that the buyer must weigh the precious metals, and test their fineness, within clear sight of the seller. The buyer must use a scale that has been certified by the Office of Weights and Measures. The buyer also must post a sign clearly showing the prices he or she offers, by weight and fineness, for various precious metals.

To help prevent the sale of stolen jewelry, and help return stolen jewelry to its rightful owner, State law requires that the seller must obtain proof of identification from the seller; and must create a serialized receipt that includes the date of the transaction; the name, address, and signature of the seller; the name and address of the buyer; and the types of precious metals purchased, their weight and fineness, and the prices paid. The buyer must give the seller a copy of the receipt, and must keep another copy for the buyer’s own records for at least one year. The buyer also must retain any precious metals in the form in which they were purchased, for no less than two business days.

The charges on indictment are merely accusations, and the defendants are presumed innocent unless and until they plead guilty or are proven guilty by the state.

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