Alejandro Mendieta Blanco was the ringleader in the scheme to buy $218,848 in stolen gold jewellery and other precious gems, melting them down to avoid detection.

Unknown to him, some of his customers at Gold Buyers Melbourne were actually undercover police officers who brought the racket crashing down in October 2017.

The 34-year-old was jailed in Victoria's County Court on Tuesday for four months. He must complete a two-year community correction order, including 200 hours of unpaid work, after his release.

He'd been on $365,000 a year running the gold business but wanted more.

He, his old brother Julio and a third man, Chey Tenenboim, bought gold rings, watches and other precious items from a host of shady characters.

The goods often came from home burglaries and were melted down straight away to avoid detection. Sellers were given a lower rate in off-the-book transactions in exchange for not having to provide ID.

"There is no evidence you experienced any shame or disquiet during your offending,"Judge Scott Johns told the younger Mendieta Blanco brother.

He was known for being extremely gifted, resourceful and driven. He finished high school in his birth country of Colombia at the age of 15 before coming to Australia for a better life.

"It's a great shame that you have sullied such a fine reputation by succumbing to the temptation of easy money," Judge Johns told him.

He was initially charged with 450 separate offences before pleading guilty to one charge of receiving stolen goods over a three-month period.

Julio Mendieta Blanco also admitted the same offence.

He's due to be sentenced later on Tuesday, but Judge Scott Johns indicated the elder brother would not receive any jail time.

Tenenboim was last week jailed for 12 months for his role in the scheme.

Australian Associated Press