CoiNuts owner gets jail time; prosecutor explains challenges of case
DAVID COLE/[email protected] | Hagadone News Network | UPDATED 10 years, 8 months AGO
COEUR d'ALENE - He's currently living in a "barn," but CoiNuts owner-operator Kevin E. Mitchell will now be provided with temporary quarters - for six, possibly seven, months - at the Kootenai County jail.
Mitchell, 49, of Hayden Lake, was sentenced Thursday by 1st District Court Judge Fred Gibler on six counts of misdemeanor petit theft. He had been charged with felony theft by false promise, but that changed after a deal was struck following two days of mediation last week.
Along with the mandatory six months, Mitchell faces an additional month of discretionary jail time. Mitchell will be on supervised probation for four years.
Several former customers gave victim-impact statements at his change-of-plea and sentencing hearing.
Mike Haenke, of Coeur d'Alene, told Gibler his family paid Mitchell $50,000 for gold and silver coins, which would be an investment for his disabled daughters, both of whom are grown but still live at home.
"That money was going to be for their future," Haenke said from the witness stand.
Haenke read a couple Bible verses to Mitchell, recalling how Mitchell told him in May 2012 that he is a man of God and recited some lines from the Bible about the value of gold and silver just before their transaction was completed.
"Kevin, you have a much larger problem than this court can give you," Haenke concluded.
Delia Beck, of Blanchard, told the court her family gave Mitchell $20,000 for gold and silver that wasn't delivered.
Beck said Mitchell disguises himself as a sheep, but, she added, "You really are a wolf who tore us all apart."
Many of the former customers had the same complaint that Mitchell didn't keep up his end of the bargain in transactions. Mitchell would take their money or valuables and would be evasive with answers when they confronted him about what he owed them.
Gerald Park, of Post Falls, who bought $49,000 in gold coins had to regularly confront Mitchell. He went once or twice a week to Mitchell's store until it was closed in the summer of 2012. The gold was a retirement investment for him and his disabled wife.
"(The gold) would be there 'next week' would be the standard answer," Park said when he would confront Mitchell. That went on for months.
Park got so frustrated that he threatened Mitchell with "bodily harm."
"I was ready to go over the counter after him," Park said.
Kootenai County Prosecutor Barry McHugh told Gibler that Mitchell consistently failed to deliver on promises to customers, and only customers who continuously badgered Mitchell ever got anything they were owed. McHugh said Mitchell often told customers "lie after lie."
"It suits his business model," McHugh said. "Still, I don't believe Mr. Mitchell gets it."
He entered an Alford plea to the charges, which is essentially a guilty plea for sentencing purposes though he doesn't specifically admit guilt. He does admit there is enough evidence that he would likely be convicted at trial.
His trial for this spring has now been vacated.
All the charges stem from transactions at his coin shop at 296 W. Sunset Ave. in Coeur d'Alene. Some customers paid for gold and silver coins Mitchell never delivered on, while others sold coins to Mitchell only to find he had paid them with bad checks.
Mitchell told Gibler he did millions of dollars in business each year, and only a few customers either didn't get money or coins owed to them. He said most of those customers didn't get what was owed because his business was shut down.
He said his reputation "was shot" after the closure and the media publicity that ensued, and that has hurt his ability to pay back his customers.
His Hayden Lake home was taken in a foreclosure, and many of his other assets were seized by authorities and sold.
He has currently been working to build a business that grows and sells organic basil. He uses the production method of aquaponics.
His stepdaughter, 32-year-old Sarah M. Mitchell, also entered an Alford plea Thursday. She worked at the coin shop and handled many of the transactions.
Following the mediation, her felony charge of theft by false promise was reduced to one count of petit theft.
Her sentence primarily consists of serving 240 hours of community service, which was converted from 30 days of jail time.
She will be on supervised probation for two years.
She offered some words of apology to customers.
After the store was closed down, "It kind of left everybody in a bad way," Sarah Mitchell said.
Her attorney, Jed Nixon, said she does have "empathy" for the customers who lost money.
"She didn't receive any luxuries out of this," Nixon said.
Hartmut Leuschner, a customer who dealt with Sarah Mitchell, got taken for $77,850.
He said the loss has caused a lot of sleepless nights.
"It was money for my retirement," Leuschner said.
In Kevin Mitchell's case, the parties agreed that he would pay restitution of $50,000 to the Haenke family, $6,230 to Frances Parody, $4,700 to Gerald Park and $20,000 to Delia Beck.
Restitution for former customers Thelma Hallgren and William Highly need to be arranged.
Sarah Mitchell was ordered to pay restitution in the amount of $101,000. That's a total for five victims.
Others have received civil judgments for money owed by the Mitchells.
ARTICLES BY DAVID COLE/[email protected]
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