Spindle City will face a public hearing at the December 6 Board of Selectmen meeting to decide if the business will face potential suspection, license revocation, or modifications.
According to Ouellette, the allegation is that Spindle City has not been following the license, registering each sale, and tracking where the metals have come from.
"Thieves steal precious metals and attempt to sell, so by having certain requirements for keeping records and holding onto the merchandise for a certain number of days, there is an ability to track where the items came from," said Town Manager Wayne Marquis. "There are regulations that have to be followed."
Similar to standard liquor checks, the Danvers Police Department checked in with the kiosk on July 12, and in the process discovered that there were some difficiences in their operating system.
Marquis said after police pointed out that the business needed to be more diligent with tracking and use of spreadsheets, when they returned to check back on August 3, the same problem was still apparent.
"We don't want the business to be a vehicle for thieves to sell their stolen merchandise," said Marquis.
At the December 6 meeting the business will have an opportunity to speak, hear a completed briefing from Ouellette, and the Board will vote on how to take action.