As Feds Target ‘Blood Gold’ And Dirty Money

(December 21, 2018- Nicholas Nehamas)

In the Colombian rainforest, outlaw gold mines are poisoning workers and the environment. Police venture deep into the jungle to destroy them with explosives.

Republic Metals, the South Florida-based gold refiner that is one of the nation’s largest, has filed for bankruptcy, a further sign of trouble for the U.S. precious metals industry, which has been targeted by federal prosecutors investigating “blood gold” for more than two years.

Republic — a family-owned company with a 38-year history in South Florida — buys raw gold and silver from the United States, Canada and Latin America, processes the metal and then sells it to corporate giants, including Tiffany & Co., Apple and General Motors.

Because of its proximity to Latin America, which is rich both in gold deposits and drug traffickers seeking to launder money, Miami has become a major hub for the U.S. gold industry.

Republic’s financial problems were uncovered in April, when the company said an internal inventory could not account for a large amount of precious metal at its plant in Opa-locka. That shortfall, coupled with serious bank debt, led Republic to try to sell itself to a major Swiss gold refiner. The deal failed, leading the company to file for Chapter 11 bankruptcy in federal court in New York on Nov. 2.