Feds Arrest Mid-Level Handlers in $8 Million Gold Scam

By Ken Silva

After arresting several lower-level players over the last year in organizations that scam U.S. senior citizens out of their gold, federal law enforcement nabbed bigger fish last month—charging two alleged mid-level “handlers” who worked in an organization responsible for stealing at least $8 million in gold bars.

In early October, the FBI arrested five people as part of the scam, including 41-year-old Mehul Darji and 51-year-old Chintankumar Parekh, who are both living in the country illegally. Prosecutors have reportedly described Darji and Parekh as “handlers,” who would drive lower-level couriers around the country to meet with victims and retrieve gold bars.

According to the Justice Department, Darji and Parekh’s scam entailed telling victims that their bank accounts were compromised, convincing them to buy gold bars and then hand them over to some supposed government official for safe keeping. They’d use their lower-level mules to pick up those bars, which were eventually sent to other members of the organization.

At a detention hearing last month, Darji’s lawyer blasted the DOJ for not identifying the leaders of the criminal enterprise.

“What seems to be missing from my read of this indictment was who, in effect, was in charge,” defense attorney David Tholen said, according to the Detroit News.

Darji and Parekh remain in detention pending trial. The Detroit News reported that prosecutors had expressed concern that they could flee the country, and that they could recover the $8 million in gold they stashed.

“Like a squirrel who buries his nuts in various places in the yard, this defendant could very well have dropped off these … gold bars in various jurisdictions that he travels between,” Assistant U.S. Attorney Terrence Haugabook said during an Oct. 8 detention hearing for Darji, according to the Detroit News.

Darji and Parekh reportedly face up to 30 years imprisonment. Their incarceration comes after the FBI arrested several lower-level mules earlier this year.

For instance, in June the FBI arrested 39-year-old Ramaraj Ganesan, who was part of a scam involving a fake FBI agent named “Jon Stryker.”

After officers allegedly found 36 ounces of gold bars in his backpack, Ganesan told them he was a courier, and that the gold came from a separate pick-up. He also told them he was being threatened by someone into participating in the scheme.

Ganesan’s story is similar to that of a woman who was arrested in a Florida gold scam in May. Like Ganesan, the woman, Swetaben Patel, told officers that she was simply a courier—in her case, for a man she knew as “King.”

She reportedly told officers that one of her trips was to North Carolina to collect $25,000 from an elderly woman.

It’s not clear whether the FBI’s arrests are isolated cases, or part of an operation against a larger organization. But it’s clear many such cases have been popping up around the country.

Money Metals, the top-rated online precious metals dealer and depository, has itself seen dozens of these situations like this over the past 12 months. Other bullion dealers have made similar reports.

“We hear from potential victims of this type of scam every week who are looking to purchase large gold bars,” said Money Metals CEO Stefan Gleason. “The fraudsters are apparently very convincing. We have even asked some folks if they are being told to turn over their newly purchased gold bars to someone else.  In some cases, they will even lie — only to call back later after they realized they had been scammed.”

According to an FBI report released in April, scammers stole more than $3.4 billion from Americans aged 60 and older last year—and those are only the reported incidents. That includes victims losing over $55 million during the last eight months of 2023 to scams involving cash and precious metal couriers.

Idaho’s Department of Finance released a warning about the latest trend on May 16.

“Idahoans should be distrustful of anyone requesting the purchase of physical gold or precious metals for government or business purposes. Physical gold/precious metal scams are conducted by sophisticated illicit actors and organized crime groups, and it is vital for Idahoans to be diligent and take the necessary precautions to protect themselves,” said IDOF Director Patricia Perkins.​​​​​​​

Originally Published on Money Metals Exchange.