Gold Tools for Drug Money Suspect Pleads Guilty

After a sting operation in NYC uncovered this June a money laundering operation that shocked the hub of the jewelry industry in the city, last week a key figure in the scheme pleaded guilty to molding gold into tools for Colombian drug lords.

On Thursday Jamie Ross, of the Manhattan gold refining business Ross Refiners, pleaded guilty to charges of money laundering and failing to file currency transaction reports for large business cash deals.

Last June law enforcement teams descended on the heart of the jewelry district on NYC’s 47th street arresting 11 people allegedly involved in the scheme. Federal prosecutors said the suspects shaped gold as ordinary daily objects, such as belt buckles and wrenches, to smuggle drug profits out of the U.S. to Colombia.

According to the prosecutors, the defendants received money generated from drug deals, created the gold objects and painted them to dupe customs inspectors.

During the sting operation, agents agreed to pay cash for diamonds and told jewelers the goods would be smuggled to Colombia. Jewelers were subsequently recorded discussing the plan, at least one promising to provide the gold in any shape the undercover agent wanted.