Jewelry re-sale business practices under question

MILWAUKEE -- A Milwaukee jewelry re-sale store is accused of not following the rules. By doing so, police say Sam's Discount has made it easier for criminals to get rid of stolen jewelry.  At the same time, it is making it harder for law enforcement to track them down.

Gold is roughly $1,800 an ounce and the demand is high. Jeff Thiele with Milwaukee police says they've given Sam's on W. Greenfield Ave. enough chances, "We have written them well over 100 tickets."

Since 2009, police have done a handful of sting operations at the store. According to city ordinance, stores have to see an ID to buy gold off people. The information is then loaded into a police database. That way, if there is a stolen item, police can track it.

The owner of Sam's did not want to comment, but he referred us to his attorney, Frank Gimbel. He admits the store hasn't always followed protocol. "I think part of that was just straight up negligence and another part of it might have been some cultural issues where there was a lack of understanding," Gimbel says.

According to Gimbel, his clients have been in the country less than ten years and are simply slow learners. He says they've always cooperated with police and they know understand the law and will comply if their license is renewed.

In the interest of full disclosure, Frank Gimbel also represents FOX6 in some legal matters.

Sam's license will be voted on next week, where Gimbel will make an appeal.