Two Jewelry Stores Accused Of Melting Gold And Reselling In $55 Million Scam

Photo: Tilak Jewelers

India-West News Desk

FRISCO, TX – Authorities on January 29 raided Tilak Jewelers in Irving and Saima Jewelers in Frisco as part of a sweeping investigation into what Collin County Sheriff Jim Skinner described as a coordinated effort to defraud elderly Texans, seizing millions of dollars in cash and gold and arresting three people.

The raids followed a yearlong investigation led by the Collin County Sheriff’s Office in coordination with federal partners. According to investigators, the two jewelry stores were allegedly purchasing gold from couriers who had collected it from scam victims. Authorities say the gold was then melted down into items such as bracelets and either resold to unsuspecting customers or exported overseas.

The alleged operation is part of what law enforcement calls the “gold bar scam,” a scheme that has spread across Texas and other states. The scam typically begins with emails or messages sent to elderly individuals, warning them of fictitious federal investigations and threatening arrest unless they follow strict instructions in secrecy.

“The suspects convinced victims they were under federal investigation and instructed them to comply under strict secrecy,” Skinner said. “Victims were directed to liquidate their assets or purchase large quantities of gold and precious metals.”

In Collin County alone, authorities estimate that about 200 victims aged 65 and older lost more than $7.28 million in retirement savings. Statewide losses tied to the scheme exceed $55 million, according to investigators. One victim was defrauded of more than $1 million in cash.

A task force has been targeting suspected couriers across the Dallas Fort Worth area since early last year. During the January 29 raids, two arrests were made at the Irving store and one at the Frisco location. Dozens of officers from multiple agencies took part in the operations.

Investigators removed all inventory from display cases and vaults, transporting the seized gold and cash in a Brinks armored truck. Authorities said the assets will be subject to forfeiture proceedings, with the goal of reimbursing victims.