U.S. Dangles Carats in Front of Buyers

How about a thick gold chain with “Big Daddy” spelled out, in diamonds, in the center?

Or a hefty gold ring, the size of a golf ball, topped by a flat bed of encrusted diamonds?

But maybe your taste is more religious? Try a three-inch-long gold pendant with the ruby-studded image of the Virgin of Guadalupe?

It’s jewelry favored by drug dealers and it’s going to be for sale, probably at bargain prices, during a government auction Saturday in the City of Industry.

Federal authorities seized $1.5 million worth of such glitzy items over the last four years from more than 50 drug busts--including “Operation Polar Cap,” the February, 1989, raid on Los Angeles’ downtown jewelry district.

Now, with the dealers convicted and related civil lawsuits litigated, the booty--4,000 items in more than 350 lots--is being sold, said U.S. Marshal Craig Meacham, head of the seven-county Central California District.

Proceeds from the auction, touted as one of the largest ever, will be returned to the agencies that made the arrests and the federal Bureau of Prisons.

To whet public appetite for Saturday’s expected six-hour auction, Meacham on Tuesday displayed part of the take in 15 black velvet trays loaded with $300,000 worth of the gaudy stuff.

Gold South African krugerrands, banned for sale through regular channels by the U.S. government because of apartheid, were piled next to Canadian Maple Leaf gold coins that sat next to a solid silver bar.

A six-carat diamond ring valued at $25,000 was plunked down next to a plastic bag containing gold earrings valued at a couple of hundred dollars.

Meacham casually fingered the larger, custom-made pieces. Many bore names--”Morris,” “Ray” and “Young Tom”--the diamond-studded remnants of fleeting drug-day glory.

“Whoever ‘Stan’ is, he’s history. This now belongs to us,” Meacham said proudly as he hefted one such necklace. “Hopefully, we’ll find a buyer named Stan who’s impressed with this.”

Or maybe not.

“Well, it just goes to show you, money doesn’t buy taste,” one onlooker muttered as she stared at a three-inch-wide gold slave bracelet and a cookie-sized gold-and-diamond pendant with the words “Mercedes-Benz” surrounding the distinctive three-point car logo.

Although the gold rope chains and big flashy watches would suit the muscular Mr. T to a T, more sedate buyers will probably go for the watches bearing such brand names as Piaget, Cartier, Omega, Rolex, Baume Mercier and Gerald Perregaux.

Some may buy the glitzier pieces just to pop out the diamonds and melt down the gold, said Armando Camarena, an executive with The Nationwide Cos., a 10-year-old firm that handles auctions for 80% of city and county law enforcement agencies statewide.

“Believe it or not, we have millionaires come here,” he said. “They want to pick up a nice Rolex and it’s cheaper than retail.”

The auction, at 13005 Temple Ave., will begin at 10 a.m. Items will be on display from 9 a.m. to 5 p.m. Friday. All sales are final, cash or cashier’s check only, officials said.