Police: Fly-By-Night Gold Sales Up

Parties, Hotel Room Sales Raise Concerns

TULSA, Okla. -- High gold prices have led to an increase of jewelry theft and "fly-by-night" unlicensed dealers in Tulsa and across the country, authorities said.

"This year, more than any other in the past, we are seeing jewelry taken in burglaries. They are bypassing the flat screens and going for grandma's heirloom jewelry in some cases," said Sgt. Brandon Watkins.

"Most people are unaware that purchasing gold requires a state-issued license," Lesher said. "As a result of the unfamiliarity of state licensing laws, the department has issued seven cease and desist orders against unlicensed persons in the last five months.

"Last session, the Legislature recognized the significance of unlicensed gold buying and passed legislation authorizing civil penalties up to $5,000.00 for offering to engage or engaging as a precious metal and gem dealer without a license, he said.

The legislation became effective July 1.

Lesher also warned that dealers purchasing precious metals and gems without a license could face a criminal misdemeanor charge; subsequent convictions are felonies.

Lesher and police both said that some people developed creative business practices to avoid state licensing requirements.

"At least two companies the department is aware of are now involved in gold buying parties at private residences," Lesher said. "Companies pay a fee and or a percentage of sales to a person for hosting the gold buying party at their home. The party host invites family and friends to attend the party and sell their unwanted gold or jewelry.

"Regulating gold buying parties is difficult because authorities do not know when and where the parties occur. Watkins said that sometimes the dealers set up shop in hotel rooms.

Watkins said that police have met with the Department of Consumer Credit about the unlicensed dealers. Police can write citations to the unlicensed buyers if they are aware of what they are doing.

Watkins said that police want to do what they can to address the problem because the cases where victims retrieve their stolen jewelry "are few and far between," since the unlicensed dealers quickly melt the gold so it cannot be identified as stolen.

Lesher advises entities and individuals to contact the department before operating as a precious metal and gem dealer in Oklahoma. The current cost of a dealer license is $425 and a $10,000 surety bond is required. Employees of a precious metal dealer are also required to be licensed and pay a $100 license fee.

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