AG wins consumer caseagainst CoiNuts owner

COEUR d'ALENE - Idaho Attorney General Lawrence Wasden won a consumer protection case that requires CoiNuts owner Kevin Mitchell to pay more than $578,000 to customers.

A state judge signed an order this week against Mitchell, 49, who was accused of taking money from customers and then not delivering on his promise of gold and silver as part of his Coeur d'Alene business.

The coin shop, which was located at 296 W. Sunset Ave., has been closed since the summer of 2012.

"This case represents an increasing problem in Idaho," Wasden said Friday. "Business owners accept consumers' payments, but fail to deliver their purchases, then shut down operations and ignore refund requests."

In the civil case, Wasden accused Mitchell of committing multiple violations of the Idaho Consumer Protection Act between 2008 and 2012. Consumers came to Mitchell's store to buy gold and silver coins, and they paid him thousands of dollars, expecting delivery.

Over time, it became clear to customers that he had misrepresented his ability to acquire the coins.

Wasden initially filed a lawsuit against CoiNuts, the business entity, and Mitchell personally in April 2013. A judge in that case entered a $743,00 default judgment against the business itself in September 2013.

A year later, the court ruled that Mitchell personally violated state consumer protection laws and he was permanently barred from owning and operating a coin business in Idaho.

"Business owners who are headed down a similar path taken by Mr. Mitchell must stop and contemplate how their misdeeds will damage consumers and the marketplace," Wasden said. "I encourage all business owners who face financial problems to immediately consult with an attorney. Ignoring your customers is not an option."

In March, Mitchell was given as long as seven months local jail time - with work release privileges - in a separate criminal case in 1st District Court in Kootenai County. He was sentenced on six counts of misdemeanor petit theft.