An elderly Michigan woman walked into a coin shop ready to put $385,000 into gold after scammers convinced her that the money in her bank accounts was no longer safe.
But when she arrived at Cedar Springs Coins & Jewelry, owner Josh VanderWerf noticed something beyond the size and urgency of the order. The woman was crying and appeared frightened for herself and her family, according to WOOD-TV.
Rather than simply completing the purchase, VanderWerf contacted the FBI. That decision interrupted what investigators say was an attempt to persuade the woman to convert $385,000 of her savings into gold that scammers ultimately hoped to obtain.
The investigation later led authorities to 25-year-old Sai K. Puttha, who was being held in the Kent County jail on two felony charges linked to the alleged scheme and an immigration detainer from U.S. Immigration and Customs Enforcement.
She Was Told Her Money Was No Longer Safe in the Bank
The scheme relied on fear. The scammers convinced the woman that her financial accounts had been compromised and that leaving her money in the banking system would put her savings at risk. Their supposed solution was for her to convert the money into physical gold.
The method closely matches a scam pattern identified by the FBI’s Internet Crime Complaint Center. Criminals may impersonate technology companies, financial institutions or government officials and tell victims that their accounts have been hacked or are in danger. The victim is then directed to liquidate savings and purchase gold, silver or other precious metals.
In some versions, the criminals later arrange for a courier to collect the metals while claiming the assets will be safeguarded. The FBI says the victim instead loses the property once it is turned over.
A $385,000 Purchase Was Unusual, but Her Fear Was the Bigger Warning
The woman arrived at Cedar Springs Coins & Jewelry wanting to acquire $385,000 worth of gold immediately. A transaction of that size naturally drew attention, but VanderWerf told WOOD-TV that her emotional state was what made the situation particularly concerning.
She was crying and appeared afraid for both herself and members of her family. VanderWerf recognized that the urgency did not look like an ordinary customer making an independently planned precious-metals purchase. Instead of pushing the sale through, he contacted the FBI.
The Investigation Led Authorities to Sai K. Puttha
WOOD-TV reported that the investigation led to Puttha about a week after the coin-shop intervention. He was being held in the Kent County jail in connection with the case.
Puttha faces two felony charges linked to what investigators describe as a broader scheme targeting older people. The available reporting also says an ICE immigration detainer was lodged against him.
Puttha has been charged, not convicted, and prosecutors must prove the allegations against him through the criminal process. The reporting also does not establish that Puttha was the person who made every communication with the woman or that he acted alone.
Two Other Similar Scams Had Already Been Stopped in the Area
The attempted $385,000 loss was not the only recent case of its kind encountered by authorities in the Kent County area. WOOD-TV reported that two other similar schemes had been thwarted locally since May.
The FBI has warned nationally about the same tactic, particularly when scammers target older adults. In a January 2024 alert, the bureau said complaints involving criminals directing victims to turn assets into cash or precious metals had produced more than $55 million in reported losses between May and December 2023 alone.
Gold Does Not Make a Compromised Bank Account Safer
A demand to move money into gold because a bank account has supposedly been hacked should be treated as a scam warning. The FBI says legitimate businesses and the U.S. government will not instruct people to purchase gold or other precious metals to protect their funds.
A bank also does not need a customer to remove hundreds of thousands of dollars from the financial system and hold the value in physical metal to investigate suspicious account activity.
If someone claims an account has been compromised, end the unexpected call or conversation. Contact the bank directly using the telephone number on the back of a bank card, an official statement or the institution’s verified website.
Never Hand Gold or Cash to a Courier Sent by a Caller
Someone who has already purchased gold after receiving suspicious instructions should not give it to a person who arrives to collect it. If a pickup has already been arranged, contact law enforcement before meeting the courier and explain that the transaction may be connected to a fraud. Do not confront, follow or attempt to detain the person yourself.
Anyone who has begun withdrawing money or arranging a large precious-metals purchase should also tell the bank or dealer why the transaction is happening. Explaining that a caller said the money was unsafe gives employees information they may not otherwise have when assessing an unusual transaction.
Victims should preserve phone numbers, emails, text messages, names used by the scammers, bank-transfer information and details about any precious-metals dealer or proposed courier. The FBI asks victims to report this type of activity as quickly as possible through IC3.gov. Older adults who need assistance reporting suspected fraud can also contact the Department of Justice’s National Elder Fraud Hotline at 1-833-372-8311.