Rubin.Khalaf.jpg

David Rubin, left, Michael Khalaf.

(Somerset County Prosecutor's Office)

SOMERVILLE — Operators of six "cash for gold" shops in Somerset County have been charged with multiple violations after an undercover investigation by state and county detectives.

Bound Brook, Franklin Township and Green Brook jewelry shops targeted by the "Operation Somer Gold" sting operation has resulted in criminal or civil charges against their operators, according to a statement by New Jersey Acting Attorney General John J. Hoffman, Somerset County Prosecutor Geoffrey D. Soriano, and State Division of Consumer Affairs Director Eric T. Kanefsky.

Undercover investigators from the Somerset County Prosecutor’s Office, New Jersey Office of Weights and Measures and Somerset County Weights and Measures visited eight cash-for-gold shops around the county offering to sell jewelry items to see if the business owners followed state consumer protection and stolen goods laws, the statement said.

"New Jersey’s cash-for-gold laws remove an avenue for burglars who profit by stealing precious items from law-abiding citizens," Hoffman said. "They also protect consumers who make the difficult decision, often during hard economic times, to part with their jewelry in exchange for cash."

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The owner of Cash4Gold/Wireless Source in Franklin Township, David Rubin, 55, of Highland Park, was charged with receiving stolen property and with the attempted receipt of stolen property, the statement said.

Rubin was allegedly found to be in possession of property he knew had been stolen during residential and commercial burglaries, the statement said.

Michael Khalaf, 51, of South Plainfield, owner of Khalaf Jewelry in Bound Brook, was charged with unlawful credit practice after attempting to pawn a gold item he received from an undercover investigator at an annual interest rate exceeding 300-percent, without a state license to operate as a pawn broker, Soriano said.

"Joint operations such as this bring together the state and county Office of Weights and Measures, which focus on protecting consumers who sell their jewelry, with criminal law enforcement, enabling us to identify and stop businesses that knowingly buy stolen property — especially items that are stolen during residential burglaries," Soriano said.

Four shops were also charged with more than 500 civil violations, each of which carries a maximum penalty of $500, for allegedly failing to follow state cash-for-gold consumer protection laws, the statement said.

Cash4Gold/Wireless Source in Franklin Township was charged with 30 civil violations, Venus Jewelers in Franklin Township was charged with 439 violations, Las Americas in Bound Brook was charged with 87 violations and Hillsborough Rare Coins in Green Brook was charged with 27 violations.

"Consumers deserve clear and accurate information when they shop around for the best value for their family’s jewelry," Kanefsky said. "That’s why the Office of Weights and Measures certifies the scales, ensures jewelers test and weigh precious metals right in front of the consumer, and provide a detailed receipt about the items purchased."

"I commend the Somerset County Prosecutor’s Office and the Somerset County Office of Weights and Measures for their proactive participation in this investigation," Kanefsky said.

County detectives from the Somerset County Prosecutor’s Office Burglary Task Force, under Detective-Sergeant Joseph J. Walsh, participated in the operation, Soriano said.

The state Office of Weights and Measures inspectors led by Robert J. Campanelli, acting state superintendent of the Office of Weights and Measures, and John T. McGuire, state supervisor of enforcement for the Office of Weights and Measures, along with state Weights and Measures investigators Kathy Belknap, James Logothetis, Rick Pluymers, Robert Spiegel and Yocelin Tejada, also participated, the statement said.

The State Division of Consumer Affairs offers advice and information for those wishing to sell their precious metals or jewelry on their website.