Houston Police Department Burglary and Theft Division

Precious Metals UnitPublic Safety and Homeland Security

Committee Meeting PresentationAugust 28, 2012

Issue/Problem

Precious Metals Value – Last 10 years

674% increase in gold1000% increase in silver

High End BurglariesOver 4,800 burglaries of $10,000 or more in stolen precious metals, stones, gems, or jewelry (July ‘10 – June ‘11) *

August 28, 2012 2

Trends in Jewelry Crime

2007 Monetary Loss of Jewelry Related Crime $21,512,228

2011 Monetary Loss of Jewelry Related Crime $41,165,888

Close to 100% increase in 4 years.

August 28, 2012 3

Conduct Inspections

Ensure the businesses are recording, reporting and holding property correctly per current law and complying.

Offer assistance and knowledge to other investigative divisions when called upon.

Liaison between the business community and law enforcement to establish healthy working relationships.

Precious Metals Unit Goals

August 28, 2012 4

Revise current city ordinance to assist law enforcement in tracking stolen crafted precious metals.

Educate precious metals dealers on state law, current city ordinance and proposed changes to city ordinance.

Training officers and businesses on how to use Electronic Web Based Reporting System.

Precious Metals Unit Goals

August 28, 2012 5

Community Involvement/Public Education:

Informing the citizens about ways to make their valuables easier to identify.

Jewelry AppraisalEtching Identifiers in the jewelryTaking Photos of the jewelryUsing a web based inventory system (www.leadsonline.com)

August 28, 2012 6

Business Education

Reviewing the existing laws with businesses:

Texas State LawHouston City Municipal Code

Business Association Meetings:Disseminating information Gaining feedbackListening to concerns

Fostering a working relationship with Secondhand Precious Metals Dealers in the City of Houston.

August 28, 2012 7

Two Permits Required

August 28, 2012 8

State Law Requirements Texas Administrative Code, Title 7, Part 5, Chapter 85, Subchapter B, Division 2, Rule 85.2001

…..dealer must prepare a transaction report form….. Including the date of purchaseIncluding the name and address of the dealer's business location; Including the name and address where the dealer purchased the precious metal;

August 28, 2012 9

Reporting Requirements (Cont.)

The dealer's registration number; The full name of the seller, as listed on the seller's driver's license A physical description of the seller to include:     (A) date of birth;     (B) height;   (C) eye color;      (D) gender; The seller’s address at the time of the transaction; The seller's driver's license number A description of the crafted precious metal purchased

August 28, 2012 10

August 28, 2012 11

August 28, 2012 12

Precious Metals Unit Recommends:

A clear photocopy or digital photograph of all items purchased by the dealer;

Web-based reporting

August 28, 2012 13

Web Based Reporting System

August 28, 2012 14

August 28, 2012 15

August 28, 2012 16

Proposed Changes to Municipal Ordinance

Hold period for records. Change from 2 years to 3 years to match state law.Time period to report to police. Change from no mention in ordinance to daily.Electronic reporting. Change from reporting by mail to electronic reporting.Pay by check. Change from no mention in ordinance to pay by check.

August 28, 2012 17

Proposed Changes to Municipal Ordinance

Expand definition of crafted precious metals. Change from Gold, Silver, or Platinum to Gold, Silver, Platinum, Palladium, Iridium, Rhodium, Osmium, Ruthenium, or an alloy of those metals.Thumb print. Change from no mention in ordinance to a clear thumb print of the seller.Digital photograph of jewelry. Change from no mention in ordinance to a clear digital image of the Jewelry.

August 28, 201218

Proposed Changes to Municipal Ordinance

Digital photograph of seller. Change from no mention in ordinance to a clear digital image of the seller.Temporary dealer requirements. Change from no specific mention in ordinance to….

Must be licensed by the jurisdiction where the permanent business is located and address must be visible on the license.

August 28, 2012 19

Proposed Changes to Municipal OrdinanceA copy of this license is to be submitted to COH with the business application for a temporary license.Temporary dealer displays all applicable license numbers on all advertisements.

License numbers on advertisements. Change from no mention in ordinance to … must provide all applicable and valid city and state license numbers….

August 28, 201220

Proposed Changes to Municipal Ordinance

Move Crafted Precious Metals Section. Move from Article II to it’s own section in Article IV.Add “purchase” to Sections…

Definition: …offering of used items for sale, “purchase”, or trade…Penalty for Violations: …owner/operator/person permits the sale or “purchase” of any goods…License fees: Any dealer described herein who desires to sell or “purchase” items at shows…

August 28, 2012 21

Dealer Committee MembersHarold Reese, Owner Harold Reese Jewelry

Dominic Rodriguez, Owner Gold Rush

Jose Rodriguez The Goldmine Gold, Silver, and Jewelry BuyersSam Rodriguez Houston Gold Merchants

H.R. “Bob" Sandler, Owner Designer Jewels inc

Brad Schweiss, Owner Houston Gold Exchange

Steven Silver, Owner Jewelry Appraisal Services

Rex Solomon, President Houston Jewelry

Connie Stagner, Owner Acori Diamonds and DesignBilly Stagner, Owner

Juan Tavarez, Owner GSS (Gold Simple Secure)

August 28, 2012 22

Dealer Committee MembersDavid Baker, President Global Stone and Metal

Rick Crumly, Owner ITB

Amelia Culwell, Owner Gold & Silver Buyers

Scott Dekilder, Owner/manager Alpha Gold Services

Aron Frank, Owner Amco Jewelry Co, inc

Veronica Guajardo Aztec Gold & Silver Buyers

Amber Gustafsa, Owner Ambersdesigns.com

David Harleston Royal Coin

Hal Martin, Owner Hal Martin's

Bruce A. Pollak, Owner Houston Estate Jewelry Liquidators August 28, 2012 23