Chinese gang caught selling fake gold jewellery to Shanghai pawn shops

Members of a Chinese crime ring that sold silver jewellery covered in a thin layer of gold in Shanghai, causing eight local pawn shops lose about $41,000, were charged Wednesday with contract fraud, Shanghai Daily reports.

The group leader, Zhu, said he learned the "gold coat trick” after being cheated by someone else, reports the newspaper:

"My eyes turned green when I learned the business was so profitable. The trick is very easy. I have the skills and I can do it better than common people," Zhu told prosecutors.

The six band member sold most of the fake gold necklaces in February this year, but their trick was not detected until late March.

“Experts could have easily found the flaws in the fake necklaces, but pawn shops were just too careless to check,” Zhu was quoted as saying.

The gang leader is facing maximum penalty, which it is  life in prison in cases of contract fraud.