A South Central District Judge has ordered the owners of a now-defunct Bismarck spa business to pay $275,000 in restitution to consumers who tried to use gift cards for massages offered at the business.
But it's unlikely the money will be paid back.
The Attorney General’s Consumer Protection Division investigated, after a number of customers complained that the business -- Spa D'Athena -- closed its doors, and did not honor the gift cards. Division director Parrell Grossman said the owners – Jill Becker and Brent Voorhees – intentionally sold the gift cards, even though they knew the business was in financial trouble, and about to go under.
"Then, as the Attorney General started to investigate and litigate, they simply refused to accept any responsibilty, or show any remorse," Grossman said.
Grossman said the owners were legally liable to make good on the cards, or provide refunds.
"However, a while after the litigation started, Becker and Voorhees moved to Nevada, and filed bankruptcy for themselves and the business," Grossman said. "They admitted they did so to discharge these debts to consumers for the gift cards."
Grossman said with restitution being discharged because of the bankruptcy, it means there will be no money for refunds to consumers.
"That is really a most unfortunate result," Grossman said.
Grossman said there is a lesson to be learned from this – consumers need to pay attention to unused gift cards, and use the cards as soon as possible.
"Under North Dakota law, gift cards cannot expire before 6 years," Grossman said. "But I think this situation has taught us all that we should use the gift cards as soon as possible. And don't assume the business will always be there."
