Alaska AG Settles Jewelry Store Over Fake Gold Claims

AG: Alaska Press Releases

Filed March 19th, 2026

Detected March 20th, 2026

Summary

Alaska Attorney General Cox announced a settlement with Soni Inc. (Flawless Fine Jewelry) and its officer for selling fake gold quartz and gold nuggets. The settlement requires $60,000 in disgorgement and restitution and allows for on-the-spot audits of future product representations.

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What changed

The State of Alaska, through Attorney General Cox, has settled a consumer protection lawsuit against Soni Inc. (doing business as Flawless Fine Jewelry) and its officer, Sunita Lakhwani. The lawsuit alleged that the company sold man-made facsimiles of gold quartz and gold nuggets, falsely claiming they were mined in Alaska and contained pure gold. The settlement requires the defendants to pay $60,000 in disgorgement to the State and restitution to four identified victims. It also grants state investigators the authority to conduct on-the-spot audits to verify future claims about product origin or composition.

This settlement imposes financial penalties and ongoing audit rights on Soni Inc., directly impacting its operations and compliance obligations. Retailers making representations about product origin or material content, particularly concerning valuable commodities like gold, must ensure the accuracy of these claims to avoid similar enforcement actions. The disgorgement and restitution aim to compensate consumers for deceptive practices, underscoring the importance of truthful advertising and product authenticity in the retail sector.

What to do next

Ensure accuracy of all representations regarding product origin and material content.
Be prepared for potential on-the-spot audits of future product claims.
Review internal processes for verifying product authenticity and sourcing.

Penalties

$60,000 in disgorgement and restitution

Source document (simplified)

Department of Law / Press Releases

Press Release

Attorney General Cox settles with Southeast Jewelry Store over Fake Gold Quartz and Gold Nuggets

March 19, 2026

(Ketchikan, AK) – Today, Attorney General Cox announced the settlement of the State’s consumer-protection lawsuit against Soni Inc., a jewelry retail business which currently does business in Ketchikan under the name “Flawless Fine Jewelry,” and one of its corporate officers, Sunita Lakhwani.

In 2023, Soni Inc. sold man-made facsimiles of naturally occurring gold quartz and gold nuggets to undercover investigators. Soni Inc.’s employees stated that these objects had been mined in Alaska and included 24 karat pure gold. Some employees claimed that Soni Inc. made the jewelry in Alaska. In fact, Soni Inc. had obtained these objects from a California company called TT Jewelry. The “gold nuggets” sold to investigators were low-purity 14 karat gold shaped to resemble a gold nugget, and the objects sold to investigators as Alaskan “gold quartz” were pieces of quartz which had been infused with a low-purity alloy of gold, or in one case, contained no gold whatsoever.

“Alaska is known around the world for its gold—our mines, our mineral deposits, the history behind them,” said Alaska Attorney General Stephen Cox. “When a business tells visitors that gold was mined here, people believe it. If that’s not true, it’s taking advantage of visitors—and trading on Alaska’s name in the process. Enforcing our consumer protection laws here protects tourists, and it backs up the many honest Alaska businesses that are doing it right.”

Under this settlement, the defendants will pay a total of $60,000 in disgorgement to the State and restitution to four individuals the State’s investigation identified as victims of misrepresentations. Additionally, the settlement empowers the state’s investigators to do on-the-spot audits to verify any future representations by Soni Inc. that the products it sells are made in Alaska or “Alaskan” or that gold quartz or gold nuggets it sells are natural.