BROWNSTOWN — A Scott County man faces serious felony charges after allegedly swindling a local buyer out of tens of thousands of dollars using counterfeit precious metals, according to the Jackson County Sheriff’s Department (JCSD).
James Everett Jenkins, 45, was arrested Tuesday following an undercover sting operation. He has been booked into the Jackson County Jail on two preliminary counts of fraud, both classified as Level 4 felonies. In Indiana, a Level 4 felony carries a penalty of up to 12 years in prison and a fine of up to $10,000 per count.
The investigation began on May 26, when a Jackson County resident filed a fraud report with the sheriff’s department. The victim explained to deputies that over several weeks, he had purchased what he believed to be hundreds of genuine silver bullion bars from the suspect, shelling out a total of $38,250.
Sensing something might be wrong, the victim later took the bars to a local coin dealer. The dealer used specialized metal-analysis equipment to test the bars, confirming the victim’s worst fear: the bars contained absolutely zero silver.
After taking the report, Jackson County detectives began digging into transaction records, social media messages, and other digital evidence to identify the seller.
During the investigation, detectives discovered that the suspect was actively orchestrating an even larger deal. He was allegedly attempting to sell a massive cache of precious metals, including gold bars, to another party for roughly $210,000.
Recognizing an opportunity to catch the suspect in the act, JCSD set up a “controlled operation” at a residence in Jackson County on Tuesday. When Jenkins arrived at the home to finalize the $210,000 transaction, waiting detectives swarmed the scene and took him into custody without incident.
Upon his arrest, deputies seized the alleged gold and silver bars Jenkins brought to the meeting. Subsequent testing confirmed that nearly all of the bars were entirely counterfeit.
While Jenkins is currently behind bars, local authorities emphasize that the case is far from closed. Detectives are continuing to investigate his criminal history and are currently seeking a prosecutorial review regarding the potential involvement of a second individual in the counterfeiting scheme.
The Jackson County Sheriff’s Department is asking anyone who may have purchased precious metals from Jenkins, or who has information regarding this scheme, to contact Detective Sergeant Jesse Hutchinson or Detective J.L. McElfresh at 812-358-2141.
