Bill requires pawnbrokers to record gold transactions
Published: August 10, 2010
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ST. CROIX — An act that would require pawnbrokers that deal in gold and precious metals to install video cameras as a deterrent to illegal activity does not go far enough, according to some senators and the police commissioner.
“Pawnbrokers are not the only businesses involved in the cash-for-gold enterprise,” said V.I. Police Commissioner Novelle Francis Jr. “There are businesses and individuals licensed as traders in gold, silver and other valuable items.”
Sen. Wayne James and Sen. Terrence Nelson said they wanted to see stronger language regarding how the valuable items and those involved in the transaction are documented. Photo identification of the items sold and the seller also should be required, they said.
Despite the concerns, the bill was passed out of the Committee on Public Safety, Homeland Security and Justice on Monday and will go before the Committee on Rules and Judiciary.
The bill comes about in the aftermath of a police initiative to crack down on cash-for-gold dealers that were accepting shady transactions, in which no proof of ownership and no identification were received. The problem was that the undocumented sale of gold caused a wave of gold-related thefts, robberies and even killings, police said.
Currently, a cash-for-gold business is required to make a copy of the seller’s identification, obtain a statement of
ownership and make an inventory of all the items sold, Francis said. That information is sent to the Police Department for review. If the items have not been reported stolen within 10 days, the businesses can move the inventory off island.
According to Francis, there are four licensed dealers on St. Thomas and three on St. Croix.
Earlier this year, the Police Department conducted information sessions with the businesses to inform them of what is required of them by law. There have been a number of arrests for noncompliance since that time.
The video cameras will be a visible deterrent for criminals, said Sen. Louis Hill, who co-sponsored the bill with Sen. Carlton Dowe.
“We want to record the transactions,” Hill said. “Because, if it turns out that this gold was taken illegally, then we will have them on camera.”
Under the proposed bill, any pawnbroker dealing in gold or precious metals without a video camera would be subject to a fine of twice the value of the transaction.
Pawnbrokers would have six months from the enactment of the bill to install video cameras.
A quorum of the Public Safety, Homeland Security and Justice Committee — Sen. Sammuel Sanes, Sen. Patrick Simeon Sprauve, James and Nelson — approved the bill. The other members of the committee — Sen. Celestino White Sr., Sen. Alvin Williams Jr. and Sen. Shawn-Michael Malone — were absent.
