Fraud Ring Allegedly Drains $55,000,000 From Seniors in Nationwide ‘Gold Bar Scam’ – Why Authorities Are Raiding Jewelry Stores in Texas

Authorities in Texas say they’ve uncovered a nationwide scam that’s drained $55 million from hundreds of elderly victims.

Federal, state and local officers just raided two jewelry stores in Irving and Frisco in connection with the so-called “gold bar scam.”

The businesses are accused of working with scammers who threatened elderly people with false claims that they were under criminal investigation, reports CBS News Texas.

Says Sheriff Jim Skinner,

“The suspects convinced victims were under federal investigation and instructed them to comply with specific instructions under strict secrecy for all the obvious reasons.

The victims, they were directed to liquidate their assets or purchase large quantities of gold and precious metals.”

Authorities say the victims would typically buy gold and hand it to couriers posing as officials.

The couriers would then sell the gold to Tilak Jewelers in Irving and Saima Jewelers in Frisco, which melted it into jewelry and resold it, with all parties taking cuts.

Three arrests were made during the raids, with millions in assets seized.

The suspects face wire fraud and money laundering charges, with sentences of up to 20 years each.

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