This is a good lesson on extending credit to buyers whose credibility appears good on the surface, but once the goods are received become the sellers worst nightmare, so before you extend credit to anyone it would be prudent to do a search on them and see if anything appears off. IMHO this is a staggering amount for this one to have gotten on credit.
Former Jeweler Indicted for Not Paying for Memo Goods Rob Bates | December 21, 2015
"A former jeweler has been indicted for allegedly not paying for almost a half million dollars in memo goods.
The indictment, filed Dec. 14 in North Carolina federal court, charges Dina R. Garfinkel—described as the former owner and operator of Nikki B. Designs in Flat Rock, N.C—with 33 counts of fraud. The suit alleges Garfinkel didn’t pay for around $400,000 in goods, which she received on consignment from 10 wholesalers from Los Angeles to Atlanta.
“Early on in her dealings with each seller, she paid for the goods as promised,” the indictment states. “Having established credibility with the sellers in this manner, Garfinkel later ordered goods ‘on memo’ from the same sellers and either withheld payment for the goods altogether, or made partial payments, or intentionally issued worthless checks to the sellers drawn on accounts she knew had insufficient funds.”
Both of my parents knew numbers and I think it sunk in early (Dad was from Missouri and Mom was from Queensland) credit is a rich mans game and a poor mans shackle. I resented the expectation of "you are supposed to trust us for it later" instead of cash and carry for ownership fully protected by the fraud and theft laws let alone instant insurance if paid by credit. I don't like it naturally, but when I front something on consignment it's in the back of my head it is the same as if I am giving it away to that person, because that is what it is on the bottom line. Hoping for a gift of payment later. Cost of business for the big boys, death knell for the small guys.
