11 NYC Jewelers Arrested in Connection with Money Laundering

Last Wednesday law enforcement teams descended on the heart of the jewelry district on NYC’s 47th street arresting 11 people allegedly involved in a drug-money laundering scheme. Federal prosecutors say the suspects shaped gold as ordinary daily objects, such as belt buckles, to smuggle drug profits out to Colombia.

Authorities say they set up an undercover operation based on information received from informers and witnesses. $1 million in gold was brought by undercover agents to different jewelry businesses that were fingered by police sources in advance.

Agents told the defendants the gold was bought with drug money and they wanted to disguise it so it could be sent to Colombia undetected. The gold was shaped as wrenches, screws and other hardware.

According to James B. Comey, the United States attorney in Manhattan, undercover agents also agreed to pay $500,000 in cash for diamonds and told jewelers the goods would be smuggled to Colombia.

Jewelers were secretly recorded discussing the plan, at least one promising to provide the gold in any shape the undercover agent wanted.