In the article, the Los Angeles Police Department was quoted incorrectly as it referred to the businesses to which they served warrants as "pawn shops"." These downtown businesses were not licensed pawn shops but were, in fact, illegal gold buying operations. Illegal gold buyers are typically unlicensed and do not follow the stringent state and local laws with respect to the reporting, holding, and capturing of customer information. Licensed pawn shops are financial institutions that fall under the jurisdiction of the Department of Justice and are held to rigid standards of practice under state "Business and Professions" and "Financial" codes. Pawn shops report all transactions to local law enforcement, follow all holding requirements, and, as is required by law, capture detailed identification of each pledger. Pawn shops file this information with local law enforcement agencies on a regular basis.
CAPA led the initiative to pass the recent "Statewide Digital Database" bill, AB 391 that was signed into law by the Gov. Jerry Brown. This bill, under the direction of the Department of Justice, will make it possible for law enforcement to quickly and decisively track tangible personal property transactions.
As the association for California's pawn industry, CAPA is dedicated to promoting the highest standards of professional conduct to the public and cooperation with law enforcement at all levels. CAPA applauds LAPD for their vigilance in shutting down the illegal gold buying businesses in their jurisdiction.
For more information about CAPA, visit www.CaliforniaPawnbrokers.org.
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California Pawnbrokers Association (CAPA) is an association of pawnbrokers and secondhand dealers and is the only one of its kind in California. CAPA's members strive to maintain the highest level of ethical conduct by following established best practices and adhering to federal, state and local laws and regulations. Since its founding in 1956, we have served the interests of tens of thousands of responsible pawnbrokers and secondhand dealers. The association serves its membership through legislative advocacy, professional education, industry programs and legal resources. Our members strive to be valued and respected by their communities by taking part in community outreach programs, as well as encouraging and fostering good relationships with law enforcement, state legislators, local government and community leaders. For more information please visit www.CaliforniaPawnbrokers.org.