Police Monitor Cash for Gold Shops to Deter Illegal Activity

As more cash for gold shops open for business in Lindenhurst, Suffolk Police are monitoring them, putting them in the same category as pawn shops - which have been known, they said, to be a magnet for stolen goods.

"Given the economy and the fact that gold is at a record high value means that there are those who'll sell jewelry and those who'll buy expensive pieces of jewelry at a fraction of the cost. There's a definite interest," said Inspector Gerard Gigante, First Precinct commanding officer.

"So there's a legitimate reason for cash for gold stores and pawn shops, and there's never a shortage," he told Lindenhurst Patch. "But as a whole we monitor the industry because it tends to be a market for stolen goods."

Monitoring
According to Gigante, cash for gold stores and pawn shops are required by law to enter all goods bought, including each piece of jewelry, into a database. Then they're required to hold goods for 21 days in case someone reports them stolen.

The shops only run into a problem with police or are flagged by police if they don't comply with the holding period or they don't properly document the jewelry and other goods they purchase from customers, the inspector noted.

Proper documentation includes taking a copy of photo identification of the customer selling the shop his or her jewelry or other goods and keeping that as part of the records that go into the database that's monitored county-wide by Suffolk Police.

"It gets into a gray area if the place is too general in their documentation or doesn't stick to the holding period," Gigante said.

Now while the inspector couldn't speak in specifics about any of the cash for gold shops that have opened in Lindenhurst, he did say that police have recovered stolen items from pawn shops in Lindenhurst and other parts of their jurisdiction in Town.

"We have recovered stolen items from pawn shops," he said. "And we've had people arrested for burglary who've pawned things, too."

Lukewarm Reception
That's why cash for gold stores and their pawn shop cousins seem to get such a lukewarm reception in most areas in which they open - especially in Lindenhurst.

In fact, just like the police, the Village sees cash for gold stores more like pawn shops than jewelry shops since they advertise that they buy and sell gold.

This distinction - and the possibility of the illegal activity they could attract - has caused the to take a closer look at them and pawn shops as a whole. (To read more about this, click .)

The presidents of the and the Village's Business Improvement District () also see them similarly, and put them in the same category as check-cashing places. (To read more about this, click .)

According to officials, the Town does require pawn shops to carry higher insurance premiums due to the possible safety and security risk they might represent with a lot of expensive merchandise and cash.

But while police have recovered stolen items from these shops, it seems that neighboring businesses haven't been negatively affected by their presence, according to Gigante.

"It's more of a matter if it fits into the [commercial area] where it is. Our concern is if it's a market for stolen property or not," Gigante said. "That's why the industry needs to be regulated. We have to be careful, and we don't want to provide a market for stolen property."

For the inspector it all boils down to the responsibility the owners of cash for gold stores and pawn shops have to run their businesses legitimately.

"They need to be held to the same standards as any other businessperson running a business," he said. "[Because] people have legitimate reasons for needing quick cash - especially in this economy. Unfortunately, there are others who view this as an illegal outlet."

Editor's Note: Lindenhurst Patch will continue to look at the business trend of cash for gold shops in Lindy in the coming weeks.

We'll talk to the , , the Business Improvement District (), the shops themselves, their business neighbors, the Town, the and other business experts about their long-term viability.

Check back next week for the next installment in the series. Missed last week's installment? Click .

Be sure to share your thoughts about this business trend in the comments below, on Facebook and Twitter, and or by e-mailing barbara.loehr@patch.com.