Attorney General Cox says state settles with company selling fake gold

By SUZANNE DOWNING

March 20, 2026 – Alaska Attorney General Stephen Cox announced Thursday that the State has reached a settlement in a consumer protection case against Soni Inc., a jewelry retailer operating in Ketchikan under the name “Flawless Fine Jewelry,” and one of its corporate officers, Sunita Lakhwani.

The case stems from a 2023 investigation in which undercover agents purchased items marketed as authentic Alaska gold products. According to the State, employees of Soni Inc. told investigators that the jewelry contained 24-karat gold mined in Alaska and, in some cases, claimed the pieces were made locally.

Investigators later determined those claims were false.

The items had been sourced from a California supplier, TT Jewelry, and were not natural Alaska gold as advertised. Products sold as “gold nuggets” were found to be low-purity 14-karat gold shaped to resemble nuggets, while items marketed as “gold quartz” were quartz pieces infused with low-grade gold alloy—or, in at least one instance, contained no gold at all.

“Alaska is known around the world for its gold—our mines, our mineral deposits, the history behind them,” Cox said in a statement. “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 the terms of the settlement, Soni Inc. and Lakhwani will pay a total of $60,000, which includes disgorgement to the State and restitution to four individuals identified as victims of the misrepresentations.

The agreement also imposes stricter oversight moving forward. State investigators will have the authority to conduct on-the-spot audits to verify any future claims by the business that its products are made in Alaska or contain natural Alaska gold.

The case highlights ongoing concerns about deceptive marketing practices in Alaska’s tourism-driven retail sector, where products tied to the state’s mining heritage can command premium prices. State officials say enforcement actions like this are intended not only to protect visitors, but also to ensure a level playing field for businesses that accurately represent their goods.