Federal and state authorities raid jewelry stores in multi-state $50 million gold bar scam

Federal and state law enforcement agencies raided multiple jewelry stores across Georgia, Texas, and Florida on Wednesday, uncovering a massive fraud scheme involving more than $50 million worth of gold. 

The coordinated raids targeted businesses suspected of participating in what officials are calling a "gold bar scam" that has victimized hundreds, primarily senior citizens.

One of the raided businesses, Milani Jewelers on DeKalb Industrial Way in Decatur, Georgia, was among several stores implicated in the investigation. 

Simultaneous raids also took place at jewelry stores in Richardson, Texas, and Orlando, Florida. 

Authorities say these operations were central to a wide-ranging network that laundered stolen gold by melting it down and converting it into jewelry, especially bracelets. The finished items were then sold to unsuspecting customers or allegedly smuggled out of the country.

According to investigators, the scam operated by fraudsters contacting victims—often seniors—via email or text message. Posing as law enforcement officials, the scammers would claim the victim's bank account had been hacked or that they were in legal trouble. Victims were then instructed to withdraw their savings, purchase gold bars, and hand them over to couriers. 

The stolen gold was subsequently sold to jewelry stores, including Malani Jewelers and Saima Jewelers, both of which are accused of running illegal gold melting operations.

CBS News Texas spoke with the daughter of a retiree in Little Elm, Texas, who lost $2 million to the scam. "It cleaned out his retirement savings," she said. Her father died last November without ever recovering the stolen funds.

So far, about 20 arrests have been made in connection with the investigation. Authorities say there are more than 200 known victims and are focusing efforts on recovering lost funds to return to those affected.