Transient Gold Buyers Forced To Shut Down!

One of the largest transient gold buying operations in the country – THR & Associates – was forced to shut its doors late Thursday evening after Beaumont Police officers entered the temporary gold buying operation set-up at the Courtyard by Marriott near Washington Boulevard and informed them they were in violation of a number of state and local laws.

The Examiner has investigated THR and its affiliated companies for more than two-years and highlighted how the company operates by conducting undercover investigations in nine states.

Primarily, the company was in violation of a new law that went into effect on Jan. 1, 2012, requiring all buyers of precious metals to register with the state and obtain a license. Additionally, the companies must provide detailed receipts to the individuals from which they are buying, according to the law. The new law was originally pushed by the Pawn Dealers Association but also received input from several numismatic associations.

THR was also in violation of a city ordinance because none of the people buying precious metals at the Courtyard by Marriott were listed on a license application with the city of Beaumont. Both the state law and the city ordinance have criminal penalties calling for a Class B Misdemeanor that includes jail time and civil or administrative penalties or fines.

THR & Associates opened their most recent gold buying operation in Beaumont on Tuesday using the alias Mississippi Gold and Silver Refinery. The name is a spin-off of another alias – Ohio Valley Gold & Silver Refinery – and is part of a network of gold buying operations using nearly a dozen assumed names belonging to THR. The embattled company is also known as the Treasure Hunters Roadshow.

According to Sgt. Mike Mills, the manager for the Beaumont show had no clue about the state law. He said he explained to them that the company would not be allowed to operate until it was in compliance with all state and local requirements. The two employees were directed to the Beaumont Police Department in order to apply for the proper city licensing but they will also have to meet state requirements set-up by the Office of Consumer Credit Commissioner for Texas and the Texas Department of Public Safety.

Calaveras Coin & Pawn also supports similar laws in California that prohibit fly by night hotel room/banquet gold buyers to pay people pennies on the dollar.  The take gold out of the area, the money goes to a different state.  Illegal gold buyers are also not helping track down stolen goods.  If you see a gold buyer in a hotel call your local law enforcement and inquire as to whether they are turning in the proper forms to local law enforcement.

Bring your gold and silver, coins and jewelry to the name you can trust: Calaveras Coin & Pawn.  Family owned and operated in Angels Camp, CA for a quarter century.  See our expanded showroom or give us a call at (209)736-COIN

THE LAW:

California Business and Professions Code (B&P) §21626(a) defines a secondhand dealer as “any person whose business includes buying, selling, trading, taking in pawn, accepting for sale on consignment, accepting for auction or auctioning secondhand tangible personal property.” (this includes gold and silver found in items such as jewelry).

A "secondhand dealer" must be licensed. (B&P Code 21640) (Not just a city/county business license but a "Department of Justice Second Hand Dealers License" - requiring a background check and fingerprinting.)

All transactions must be done at the location on the license. (B&P Code 21642.b.1) 

All secondhand dealers shall report all transactions to the Chief of Police or Sheriff. (B&P Code 21628) 

Every secondhand dealer shall hold for 30 days all tangible personal property acquired, and shall make it available for inspection by law enforcement. (B&P Code 21636) 

Violation of any of the above is a misdemeanor with up to a $1,500 fine and/or 60 days in county jail. (B&P Code 21645). 

If you are the host of, or otherwise allow at your location, a gold party that is not in full compliance with the laws that govern and regulate a "secondhand dealer" (requiring a Department of Justice License, you may be held liable in a crime. CA Penal Code §31. [“All persons concerned in the commission of a crime, whether it be felony or misdemeanor, and whether they directly commit the act constituting the offense, or aid and abet in its commission,...are principals in any crime so committed.”] 

Also if the business transacts a certain amount in precious metals yearly a "Anti-Money Laundering Plan" (AML Plan) must also be on file with law enforcement and the hosting entity.

Come to the name that folks of the Foothills & Mother Lode have been coming to for nearly 25 years, Calaveras Coin & Pawn in Angels Camp.  Family owned and operated.  1283 S Main St. in historic downtown ANGELS CAMP (DOWNTOWN FROG TOWN).  (209)736-COIN