Former Goodrich resident and business owner Bernadette Jacobs was back in court on Tuesday for a restitution hearing.
In January, Jacobs pleaded guilty in 7th Circuit Court before Judge Joseph Farah on two counts of felony check fraud.
The charges stem from bad checks Jacobs wrote to pay sellers as owner of The B Hive, 7285 M-15, in Atlas Township which she opened in 2012. The 22,000-square-foot facility included consignment items, a weekly flea market and was home to her auction company, Legacy Estate Services. Jacobs closed the operation in December 2013.
On Jan. 24, 2014, Bernadette Jacobs was arrested in her driveway by Genesee County Sheriff’s deputies and later charged with four felony counts of check fraud. She has no prior offenses. Sheriff’s deputies searched her home following the arrest and recovered property belonging to several victims.
In September two of the felony counts were dismissed. The two remaining charges had carried a two years in jail term and/or $2,000 in fines, however, as part of a plea agreement there will be no jail time.
On Tuesday attorneys for both sides had settled on $29,137.76 in restitution for 29 victims of Jacobs. However, five alleged victims of Jacobs were subpoenaed to testify at the hearing regarding compensation for items sold. Two of the victims attended the hearing in 7th Circuit Court before Judge Farah.
Both victims testified that many items ranging from snow blowers to a Chippendale desk to Waterford Crystal were allegedly put up for auction by Jacobs or offered at the B-Hive. The victims claim they were never compensated for the sale of many of these items. They also claimed only a fraction of the estimated value of the items was paid after it was sold. The estimated value they claimed was in excess of $15,000.
‘It’s not eBay,? Jacobs told the court room from the witness stand. ‘What people ask for and what they sell for are different.?
Jacobs gave an example of vintage refrigerators that are often considered collectible items.
‘I have them (vintage refrigerators) lined up in my showroom selling for $10 or $20 each. Office chairs are $5 each,? she said.
Jacobs said the agreements were 50/50 with customers, thus such small payouts are common. She explained how a customer would claim a used snow blower was worth $1,000 at auction, but would net only $125. Then she would take 50 percent of that or $62.50.?
Judge Farah questioned Jacob’s claim of such a low sale price.
‘What motivation is there?’he said. ‘Why expend the effort? It’s a lot more trouble for such a little profit.?
Jacobs? attorney Monica Wilson responded.
‘She had a few business problems,? she said. ‘And personal problems. The business did go under.?
After about an hour of deliberation Judge Farah added $2,425 in restitution for the two plaintiffs in court on Tuesday. The new total restitution is now $31,563 owed the victims of Jacobs.
‘How are they going to get money out of her?? asked Farah, following the testimony. ‘We are at $32,000 now, how is she going to pay $6,400 a year on what we have here? The court has no fund of money to pay the victims. What is the plan here? Do you want her to go to jail? (Paying this back) It’s a pipe dream.?
‘My client thinks $500 per month for five years is doable,? said Wilson in response to Farah. ‘That would be $100 per week for five years.?
Farah did not agree.
‘Why can’t she get a charge card at 18 percent?? quipped Farah. ‘A lump sum is better and reasonable. At $500 per month for 30 people is a total of $20 per month.It’s an irritation to people.?
A second restitution hearing will be set for Jacobs with three victims that were subpoenaed for Tuesday’s court but did not appear.