Law Enforcement Cracking Down on Jewelers That “Fence”

By Rob Bates | February 04, 2026

A recent spate of arrests and prosecutions shows that law enforcement is taking a tough line against jewelers who buy pilfered property, Scott Guginsky, executive vice president of the Jewelers’ Security Alliance, tells JCK.

Last week, Salim Sakal, 55, co-owner of Ramoun Jewelry in Queens, N.Y., pleaded guilty in federal court to one count of conspiracy to sell and receive stolen goods. According to a Justice Department statement, Sakal had regularly purchased items from a Colombian gang that committed burglaries against jewelers in six states.

Also last week, two Texas jewelers were arrested for their alleged roles in a scheme involving gold bars that had been scammed from senior citizens.

In addition, over the past six months, jewelers have been charged with fencing in upstate New York, Seattle, and New York City’s Diamond District.

None of this is surprising, says Guginsky, since the trade-in business is booming as gold and silver prices have soared to record highs. He advises jewelers to be extra careful when they buy “off the street.”

“You should definitely think twice when people come in offering a large amount of gold, or jewelry in bulk, at under market value,” Guginsky says. “You need to be asking for identification, you need to have the proper books, you need to have the required secondhand license, and you should have security cameras filming these transactions. If it’s too good a deal, you should know that something is up.

“When these gangs are arrested, the first person they throw under the bus to save themselves is the jeweler that’s been buying the stolen property,” he continues. “A lot of times, there’s no affiliation between the gang and the fence. There’s no loyalty.”

That said, prosecutors typically don’t distinguish between co-conspirators. “Law enforcement is going to look at a jeweler who keeps buying stolen property as part of the gang, and they’re going to be held accountable,” says Guginsky.

In the Texas case, the two jewelers allegedly purchased gold bars that were obtained in a con that’s popped up nationwide. The ruse typically involves fraudsters who pose as government agents and tell seniors they’ll be arrested unless they turn their savings into gold, which must then be handed off to “couriers” for safekeeping.

According to news reports, police discovered $30 million in metals inside the two Texas jewelry stores, which were raided simultaneously to avoid one notifying the other.

Sakal, the jeweler charged in Connecticut federal court, was cited for not having a valid New York City secondhand dealer license and not maintaining the records required of retailers when they buy used goods, such as the sellers’ identifying information, a description of the items, and the date and time of the purchase. As part of his plea deal, Sakal has agreed to pay $2.5 million in restitution. He faces five years in prison. His lawyer declined comment.

More information on recent cases can be found on JSA’s website.

(Photo: Getty Images)