In Show Low, Arizona, at a coin shop, the owner had seen his fair share of large transactions, but the phone call he received this time caught him off guard. An elderly man from nearby Snowflake town called expressing his interest in purchasing tens of thousands of dollars worth of gold coins.
The next day, when the man walked into the shop in Show Low, it was evident he was very nervous. Clutching his phone tightly, he listened carefully to the woman on the other end of the line, as if she was guiding him.
“Before we even sat down to discuss prices, products, or anything else, he had a cashier’s check for $180,000 ready,” the anonymous shop owner told The Epoch Times. “It struck me as a bit odd.”
The individual struggled to answer even basic questions, appearing keen on completing the transaction as quickly as possible.
The shop owner grew increasingly suspicious. He wondered if this elderly customer was being targeted by scammers.
Careful not to alert the woman on the phone, he discreetly passed a note to the man, inquiring if he needed help. Convinced that something was amiss, he contacted the authorities.
The FBI and other agencies quickly took over the case. Two weeks later, they apprehended a suspect and uncovered a complex fraud scheme that had swindled $100,000 worth of gold coins from the 79-year-old man.
However, such cases are not isolated incidents. Since May 2023, the Internet Crime Complaint Center (IC3) reported a surge in scams impersonating government agencies involving gold bars. In September, the FBI warned that these scams had resulted in losses exceeding $186 million.
This type of scam, known as the “gold bar” scheme, specifically targets unsuspecting elderly individuals, retirees, and vulnerable populations.
According to the Ohio Department of Commerce, these schemes typically begin with someone impersonating a U.S. government or law enforcement official. In January of this year, local media reported that an 89-year-old woman in Sylvania, Ohio, lost over $1 million in a similar scam.
Victims often receive letters, emails, or phone calls claiming their identity has been stolen, putting their bank or investment accounts at risk.
Subsequently, victims may be told that taking prompt action can protect their wealth within a short period.
Scammers persuade victims to purchase gold, silver, or other precious metals and arrange for couriers to collect them. They claim that this prevents the theft of these precious metals.
Fraudsters warn victims not to discuss the ongoing situation with banks or anyone else and threaten legal repercussions if they do.
A scheme may involve multiple fraudsters manipulating victims, each playing different roles such as tech company employees, bank representatives, or government officials.
In some cases, as in the Snowflake man mentioned at the beginning of this article, victims may be asked to provide funds to avoid criminal charges or prove their sincerity.
“This is essentially a very common scam,” said Detective Amity Toth of the Snowflake-Taylor Police Department, the lead investigator in the case, to The Epoch Times. “These scams are both cunning and cruel.”
Toth noted that victims often cooperate with fraudsters out of fear of false arrest or lack of legal knowledge.
The man from Snowflake fell into this category. He told investigators that in October, a woman with a foreign accent called him, claiming to be U.S. Marshal Holly O’Brien.
She informed him that someone had stolen his identity, rented a car in his name, and abandoned it in El Paso, Texas.
Subsequently, the woman alleged that drugs and bloodstains were found in the driver’s seat by law enforcement. She warned the man that unless he provided detailed information about personal belongings to prove his identity, he would face criminal charges.
He complied with her instructions. Later, he agreed to hand over $100,000 worth of gold coins from his private collection to a courier on October 27.
However, Toth said the scammers were not satisfied.
The scammer directed the man to withdraw $180,000 from the bank and purchase more gold coins, to be picked up by a courier on November 14.
“I believe they will stop at nothing until they’ve bled him dry,” Toth said. “They’ll find alternate ways to keep extorting money from him.”
Toth has been investigating fraud cases for over a decade. She described these fraudulent activities as a “significant national issue.”
She stated that scammers who exchange cash for gold typically target victims randomly.
“They cast a wide net. Essentially, it’s a cold-call. They create a sense of urgency,” Toth remarked.
“Most people would hang up or not answer calls, but there’s always one in a thousand who will believe them,” she added.
Similar to the Show Low case, victims are instructed to liquidate assets or buy gold, silver, or other precious metals for safekeeping.
“Unfortunately, victims often lose contact with the scammers and end up losing all their money in the end,” stated the Ohio Department of Commerce.
This year, at least four individuals have been convicted of similar crimes.
According to the U.S. Attorney’s Office for the Western District of Texas, in a case back in June, an Indian citizen residing in the U.S. on a student visa pled guilty, leading to elderly victims losing hundreds of thousands of dollars in cash and gold.
Dhruv Rajeshbhai Mangukiya, a 21-year-old with a student visa, was sentenced to over eight years in prison after pleading guilty in a federal court in Austin. He was also ordered to pay over $2.5 million in restitution.
The Department of Justice mentioned that Kishan Rajeshkumar Patel, a 20-year-old, alongside Mangukiya, participated in a scam in 2024 involving millions of dollars. After pleading guilty, Patel was sentenced to over five years in prison.
The fraud ring sent out false internet communications and posed as U.S. government officials, with Patel collecting cash and gold from victims, distributing some to other members of the scheme while keeping a share for himself.
In November last year, two men from Southern California admitted to defrauding a woman in Carlsbad of nearly $1.5 million over several months.
Xilin Sun, 35, and Alexander Charles James, 21, impersonated government, bank, and tech support personnel in the California scam.
The scheme in California began with a pop-up message on the victim’s computer. The message warned the victim that her computer had been hacked.
They convinced her that she could deposit funds into a supposed U.S. Treasury safe box to secure her funds. The final amount was to be deposited in the form of $100,000 in gold bars. Fortunately, this turned out to be a sting operation, no funds were transferred, and it ultimately led to the arrest of the fraudsters.
Sun and James admitted to participating in an organization that engaged in various forms of fraud across the U.S., including tech support scams, posing as banks, and impersonating government entities with victims nationwide. They are set to be sentenced in February 2026.
Regarding the Show Low case, Toth noted that the scam call purported to be from U.S. Marshals, using an official tone to invoke fear and anxiety in the victim.
The fraudster successfully persuaded the victim to provide crucial information, including his name, birthdate, social security number, and a list of financial assets.
“I was beside him multiple times when he was talking to her,” Toth said. “There was a lot of background noise when she spoke to him. Therefore, I theorized she was working in a call center. The likelihood of this call center being in the U.S. is slim.”
Toth revealed that the coin shop owner in Show Low managed to delay the delivery of the second batch of gold coins by two weeks, allowing authorities more time to gather evidence and prepare for the arrest of the courier coming to retrieve the gold.
On November 14, near the victim’s home in Snowflake town, Navajo County, Arizona police arrested Ankit Sahoo, a 27-year-old resident of New Jersey, as he attempted to flee the scene driving an SUV before retrieving the 43 Australian one-ounce gold coins from the victim.
Investigators discovered that Sahoo entered the U.S. with an expired Indian student visa and was flown from St. Louis, Missouri, to Phoenix, Arizona, to collect the payment.
“He flew in that night. He rented a car that was supposed to be back that night. I’m sure he’d have flown back to where he came from after returning the car,” Toth said.
Sahoo is currently held on $400,000 bond and refused to plea on December 4. The Epoch Times reached out to Sahoo’s attorney for comment but did not receive a response.
Toth believes that the victim’s $100,000 worth of gold coins is gone for good.
“They extort in multiple ways. They don’t use receipt numbers. It’s all hand-to-hand trades, making it nearly impossible to trace,” she said.
A business partner of the coin shop owner in San Diego informed The Epoch Times that he had seen several similar gold bar scams.
He said, “They tell people their identity has been stolen and they need to get things out of the bank. They say the safest way is to buy gold and have it picked up by a courier. People believe them.”
He continued, “As the prices of precious metals continue to rise, I think crimes involving these metals are rapidly escalating.”
In October, gold prices hit a record high of $4,381.60 per ounce and have since remained high.
Toth believes that the best way to prevent gold bar scams is by empowering people with the knowledge to identify these scams and avoid becoming victims.
The FBI issued a public service announcement cautioning individuals against sharing personal information with strangers over the internet or phone.
Toth emphasized that law enforcement agencies would never demand personal financial information over the phone or threaten with arrest.
If someone claims to be a law enforcement officer or government employee and requests personal financial information, Toth advised asking for their name, badge number, warrant number, and any other detailed information that can verify the caller’s identity.
She stressed that remaining calm is crucial.
“You’re actually very skeptical in your mind, but the question always arises, ‘What if it’s true? I don’t want to go to jail,'” Toth said.
However, once the targeted individual starts pushing back, the scammer will decide, “Hang up the phone; it’s over.”