scrap q&a volume 33 · no. 2 | summer 2020 covid-19 c rrisi ...€¦ · charlene komar storey...

VOLUME 33 · NO. 2 | SUMMER 2020

SCRAP Q&A

CoViD-19CoViD-19c R i s ic R i s i SSToday’s Pawnbroker |P.O. Box 610 |Lady Lake, FL 32158ADDRESS SERVICE REQUESTED

Charlene Komar StoreyEditor-in-Chief

SUMMER 2020 | TODAY’S PAWNBROKER 3

Tough Times

Member of the National Pawnbrokers Association

PUBLISHERGREGORY D. STOREY

EDITOR-IN-CHIEFCHARLENE KOMAR STOREY

ART DIRECTORBOYD DELANCEY

CONTRIBUTING WRITERRIC BLUM

CORRESPONDENTSDAVID GELLER PHILLIP M. PERRYPETER B. SPECTORRICHARD WEATHERINGTON

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TODAYSPAWNBROKER. COM

Editor’s Letter

Facebook.com/TodaysPawnbrokerTwitter: @PawnbrokerMag

These are rough days for the pawn industry.To outsiders, it may seem that persons owning essential businesses — and

pawnbroking is classified as such by the federal government — would besitting in the catbird seat during the COVID-19 pandemic, but that’s notentirely so. There are local and even state officials who often have to be con-vinced of pawnbroking’s status if shops are to be allowed to remain open.There are also employees and customers to reassure and keep safe, andstrange, unexpected business trends.

We’re covering all that from pawnbroking’s unique viewpoint in this issue,building on our Spring issue coverage, as well as sharing ideas and tips thatare important now and if there is a second wave of the pandemic. Some ofthe changes pawnbrokers have made to cope may work well enough tobecome permanent, even if COVID-19 fades away faster than expected.

But just when it seemed that things were at least moving toward normal,many pawnbrokers suddenly found things going from bad to worse. Few ifany expected the explosion of protests and looting that followed the death ofGeorge Floyd. There hasn’t been such a series of upheavals since 1967, andmost pawnbrokers today weren’t running shops then.

We considered trying to cover the destruction of many pawn shops amidthe turmoil, as well as how other pawnbrokers were able to prevent or limitdamage and, importantly, what steps you can take to protect yourself in thefuture. And sadly, we know that in many cases, they are limited.

We decided to defer that until our next issue for several reasons. First, atpress time, most affected pawnbrokers are in the middle of dealing withtheir situations and are too busy to talk to us. We don’t want to be a furtherdrain on their time.

Second, many are just too upset. The stages of grief can apply to thedamage or demolition of a person’s business as well as a person’s death.Shock and denial, pain and guilt, anger and bargaining, depression, theupward turn, reconstruction and working through, acceptance and hope —it’s easy to see how all these reactions can result from the destruction of yourlife’s work.

Finally, we need time to do a decent job, talk to the right people, and learnabout the decisions pawnbrokers are making if we want to provide youinformation that you can use. And we do.

Let’s hope that there won’t be any other disasters to report on. Stay strong,and may the road rise up to meet you.

6 COVER STORY | COVID-19 CRISIS→ The Pawndemic→ Bringing People Back→ Handling Jewelry During the

Pandemic

26 THE LAWDefinition at Center of Lawsuit

36 APPEALSThief Tagged ‘Worst Offender’ AfterPawning Stolen Item

DEPARTMENTS3 LETTER FROM THE EDITOR28 FIRESIDE CHAT30 IN THE PUBLIC INTEREST31 CALENDAR32 TIPS FOR PAWNBROKERS34 BUYER’S GUIDE 37 CLASSIFIED 37 ADVERTISER INDEX

Contents Summer 2020

FEATURES



THe PAwndEmic

COVID-19 has created unprecedented challenges

for pawnbrokers.By RIC BLUM, CPP

8 TODAY’S PAWNBROKER | SUMMER 2020

COVERSTORY

Pawndemic. That’s notreally a word. I made it up for thisarticle’s title. It describes a situationpawnbrokers endure during anunprecedented pandemic of nearbiblical proportions in the modern-dayworld, during which life as we know itbasically goes to hell.

It’s when the federal government saysyou are an essential business and havethe right (and responsibility) to beopen, but some state and local gov-ernments say you need to be closed.

It’s where everyone in your pawnshop has masks and gloves on, not justrobbers or a hazmat team, whichcreates an uneasy feeling that you havenow learned to accept. (So much forsmiling at your customers.)

I Googled pawndemic to see if it wasa word. No, it does not exist. However,there is a member of the websitechess.com who goes by the handle of“pawndemic.” (chess.com/member/pawndemic). I can see this, as a pawnbeing an inconsequential chess piece.

NEW NORMALI’ve seen the stock market collapse a

few times. I’ve seen war, although notreally here in the United States. I’veseen terrorist attacks in the U.S. I’veseen hunger, anger, desperation,depression, recession, inflation, illnessand death -- but nothing like this.

It’s reminiscent of the good old daysof epidemics and pandemics whenmedical treatment was basically nonex-istent. You would think today we wouldhave the medical know-how to treatsome things faster and be better able toat least provide basic protective gear tothose in need.

The leaders of the United States, andthe entire world, really didn’t knowwhat to do about the pandemic, orwhich end was up. They didn’t have agame plan for a virus such as this. Nec-essary medications and vaccines don’texist, and no one had adequate personalprotective equipment, personnel orfacilities. Unfortunately, the learningcurve has been steep and deadly.

And now, on the home front, ormaybe I should say storefront — thatmeans in your pawn shop — it’s also agreat unknown. All owners do whatthey feel is best for themselves and theirbusinesses. There is no written rule tofollow, and it seems as though everylocal, state and federal governmentagency has its own set of guidelines —often in conflict with one another —such as stay-at-home or shelter-in-placeorders. And don’t forget social dis-tancing and whether to wear or notwear a mask and gloves.

ESSENTIAL OR NOT?Let’s start with the great debate: Are

pawnbrokers an essential or a non-essential business?

Everyone likes to think they areessential. If not, you may not be inbusiness to begin with. But what youthink doesn’t always matter. States andlocalities have issued stay-at-homeorders to keep the general populationsomewhat isolated. Decrees can vary asto who exactly is deemed essential andthus an exception to the stay-at-homeorders.

We all know that pawnbrokers areconsidered financial institutions undernumerous federal laws, and this shouldtake precedence over state and localrulings. But it doesn’t always work thatway. And in times of panic (that’spandemic minus the “dem”), it can behard to educate some governmentagencies or explain policy and pro-cedures. Nor do they always take thetime to listen.

We have federal law, decrees and

mandates that affect pawnbrokers.First, the USA Patriot Act, enacted in

October 2001, defines “financial insti-tution” to include pawnbrokers. It’scodified in 31 U.S.C. § 5312(a)(2)(o).Providers of financial services in thescope of section 5312(a)(2) also includecommercial banks and credit unions,among others.

Pawnbrokers also are providers of“financial services” as defined in section103 of the Gramm-Leach-BlileyFinancial Services Modernization Act of1999 and are subject to its Title V(Privacy), which governs providers ofconsumer financial services, and to thetwo federal consumer financial pro-tection regulations that implement TitleV. Pawnbrokers must comply with otherfederal statutes and regulations,including consumer financial protectionand anti-money-laundering statutes,that apply to banks and credit unions.

Some state laws specifically referencepawnbrokers as “financial institutions.”Others don’t. But the federal gov-ernment clearly does.

You would think that a recent memo-randum from U.S. Treasury SecretarySteven T. Mnuchin identifyingfinancial-services sector workers asessential workers would be enough forstate and local agencies and lawenforcement to accept -- but no, each ofthem believes it alone has the power tocontrol its own locality.

PREEMPTION DOCTRINEIn times of panic, laws, orders,

directives, and rulings are not always insynch. Conflicts abound.

There is something called theSupremacy Clause of the Constitutionof the United States that addresses thisvery issue.

Article VI, Clause 2 states thesupremacy of federal law, assuming theunderlying priority of federal authoritywhen that authority is expressed in theConstitution itself. No matter what thefederal government or the states might


COVERSTORY

wish to do, they have to stay within theboundaries of the Constitution. Thismakes the Supremacy Clause the cor-nerstone of the whole U.S. politicalstructure.

Then there is the matter of pre-emption. The preemption doctrinerefers to the idea that a higher authorityof law will displace the law of a lowerauthority of law when the two comeinto conflict.

Congress allows federal regulatoryagencies to set national minimumstandards, but does not preempt stateregulations imposing more stringentstandards than those imposed byfederal regulators.

Where rules or regulations don’tclearly state whether preemption shouldapply, the Supreme Court tries to followlawmakers’ intent, and prefers interpre-tations that avoid preempting state laws.

So if financial institutions areessential, and pawnbrokers arefinancial institutions, pawnbrokersshould be essential. But if a state saysthey are non-essential, is this morestringent or not?

OPERATIONAL PATCHWORKMeanwhile, there’s also no rhyme or

reason as to how pawn shops have beenoperating. Some owners made thedecision to close independently of anygovernment edicts. They may have beenconcerned about their own health, orthat of their employees and family.

Others shut their doors temporallybecause of the indecision on the part ofgoverning or regulating bodies aboutwhether they are or aren’t essentialbusinesses.

Then you have business decisionsbased on the primary type of servicespawn shops are performing. Some areonly open for financial transactions, orpawnbroking in its truest sense:making pawn loans and taking finance-charge payments as may (or may not)be specified by state or local mandates.

Others are open as usual and con-

ducting their normal daily businessfunctions. Still others have reducedtheir days or hours of operation.Everyone is doing what they feel is bestfor themselves and their customers.

I have been open my usual hours buthave closed my state lottery terminal aswell as all lottery services. I have not putany jewelry in the showcases for sale. Iview lottery as unessential. Jewelrysales, while essential to the bottom line,are too up-close, personal and time-consuming.

Admittedly, eliminating jewelry salesis going to hurt. As a side note, myjewelry repair shop is also closed, so nosizing, setting or repair. The jewelryrepair shop I use, a nationally knowntrade shop, is closed to follow the stay-at-home order issued in its state. I don’twant to call it unessential, but I guess itdoesn’t meet the qualifications in thetrue sense. The shop may have alsodecided closing was best for itsemployees, who work close together,making social distancing very chal-lenging.

Earlier in the pandemic, even jeweler-supplier Stuller closed, saying that nonew orders would be filled and itemsalready ordered would not be shipped.From Stuller’s website in April: “Theneeds of our customers, the well-beingof our associates, and the protection ofour community are Stuller's top pri-orities during this time. Click here toview our latest updates regardingCOVID-19.”

Kay Jewelers closed its stores in April,stating: “We are committed to the safetyof our staff and customers. All KAYstore locations are now temporarilyclosed as we deal with COVID-19.” Atpresstime, some stores had reopened,but not all — it depends upon state andlocal limitations.

Pawnbrokers are mostly small inde-pendents, and many make their ownindividual rules. But even those that arelarger — including local and regionalchains — still make their own rules,

adhering to what they see as the mostimportant things they should do fortheir economic future as well as thewell-being of their employees and theircustomers.

I’ve talked with a few pawnbrokerswho are open for pawn-related businessonly. They are not conducting any otherforms of business right now.

Still others are selling firearms andammunition only. As I’m sure most ofyou know, besides toilet paper, there’sbeen huge consumer demand for videogames, computers and tablets, TVs —and firearms and ammunition.

ACTIVE PAWN LOANSMany pawnbrokers throughout the

country have made the decision to notforfeit any active pawn loan for an addi-tional 30 to 60 days, since the pawnermay be facing additional financialhardships.

Others, besides holding loans longerand not forfeiting any loans, areallowing for extensions and taking on-line payments. Some are acceptingcredit card payments over the phone(not quite proper, but in uncertaintimes ...). A few pawn shops havelowered their finance charges or haveeven eliminated them for a short time.

At my two pawn shops, I instituted apolicy to hold all active pawn loans foran additional period of time. We alsomade up log sheets for loan extensions,anticipating pawners would come in orcall to ask for additional time. It didn’thappen. I had a total of eight people askfor a loan extension — fewer than wenormally get.

In the beginning, we also stoppedsending out our forfeiting notices (statelaw requirement). After a few weeks wechanged that to at least sending out for-feiting notices to get some cash flow,but still not forfeiting those pawn loans.

After a month I started to forfeitselectively. This included items fromfirst-time pawners who probably meant

continued on page 10


COVERSTORY

to sell rather than pawn, and those withrecords of forfeiting damn neareverything they had ever pawned.

Anyone with any kind of redemptionrecord was extended. Still, I held alljewelry loans as I was not sellingjewelry, and in hope that someone

would come in and renew or redeem.

MASKS, GLOVESAll my employees are wearing masks

and gloves at all times, and everythingis cleaned multiple times a day.

I had only one issue with the stay-at-home orders. A representative of the

county Public Health Department cameto one of my pawn shops April 14 andhanded me an Order to Submit infor-mation to determine compliance withthe Ohio Department of HealthAmended Director's Stay-at-HomeOrder.

PAWNDEMIC, from page 9

Pawnbrokers have been sharing many thoughts, concerns andideas throughout the COVID-19 crisis. Here are some of them.Frontline Dispatches

I’m not certain yet what I can afford to do,

but I have customers asking for discounts

and I would like to help.

Douglas Braswell,

Braswell & Son Pawnbrokers,

Little Rock, Ark.

I would conduct business as usual and

react on a case by case appeal. . . . We are

staying open, limiting the store to three cus-

tomers at a time. As long as I can stay open, I

am going to run the business as normal. I will

send notices as usual, although I’m not

going to forfeit any loans for the time being. I

guess it will depend on how long the stay-at-

home order lasts. I don’t want to lock myself

into a situation where I can’t pull loans if I

need cash to keep writing loans.

Greg Fauver,

Alliance Loan Co.,

Alliance, Ohio

We have suspended retail sales. We only

allow two people in the store at a time at

well-separated counters. We have an

employee at the door who controls this.

Since we buzz in, it makes it easier. All

employees are gloved and masked. ... We

constantly wipe down all touched places with

disinfectant and wipes.

As far as rates, we are writing all new loans

at 50 percent of normal rate and all renewals

at 50 percent of normal rate. We have auto-

matically pushed grace periods another 30

days. We already hold 60 on a 30-day loan,

and now will hold 90 total.

Ben Levinson

Dynasty Jewelry and Loan, LTD.

Norcross, Ga.

I had my first employee come to me

today and say he doesn’t feel good. He is

upset and nervous and would like to go

home. OK, sign out and go home. I’m

thinking it is virus-related. Don’t know what

kind of grief he is getting from

home/family/girlfriend. Things like this affect

everyone differently. I’ll let him use sick

time/vacation time if he needs it.

Ric Blum

Here in New York, life is getting more and

more restricted. More and more businesses

are closing and many people are being laid

off as a result.

I have been wrestling with the dilemma as

you all have. Today, we are open, although

my stores have adjusted our hours. We are

only open 4 hours a day, five days a week at

this point. All branches are still doing

business and are operating under the con-

clusion that we are financial institutions and

will remain open unless it is mandated that

we close. Working from home is not really an

option, but I am trying to make this option

available to bookkeepers and any staff that

can. Our governor is requiring 25 percent

work force but I don’t know how to handle

that with only three employees in store.

Staff are concerned about traveling to and

from work, but they are also happy to have a

job and I am not hearing any complaints at

this point. Masks, gloves, sanitizer, social dis-

tancing are all being utilized.

It’s a scary time everywhere. Be safe, be

smart.

Eric Modell

Modell Financial Inc.

New York, N.Y.

We are in the process of installing a “Teller

Window” with large item Lazy Susan as a

base. This will allow us to transact business

through this window under some contami-

nation control. The base rotates 180 degrees

to allow the customers to insert an item while

we can see through and then spin it around

to us to remove. And of course, to pass items

back when redeemed. It has the ability to be

locked in several spots in rotation. Used this

as a late-night window at the original

location.

Phil Webb

Best Pawn and Jewelry,

Bay St. Louis, Miss.

We are open for all regular

business. However, we are limiting the

number of folks in the stores to five at one

time. We have one high-risk employee

working offsite answering phones and

making calls. We’ll most likely add to that

number. The offsite answering of calls has

alleviated a significant amount of workload in

the stores. It may be that we further develop

that after this passes.

Douglas Braswell

Braswell & Son Pawnbrokers

Little Rock, Ark.

We have had police in Fort Collins shut

down a store for being non-essential. I’m

looking for others in Colorado; contact

me. Has anyone else had any issues?

Steven Adsit

Mister Money 35

Greeley, CO

I am interested in thoughts on pawn

offerings during this time and how you are

handling existing pawn payments/

redemption fees. Offering a “free” pawn to

those affected in the community is a good

idea and would be especially beneficial in

the long-term for those who haven’t before

considered pawn a viable alternative. Maybe

set aside a limited amount of money for this

type of pawn in order to ensure revenue

during the time of “free” pawns? How to

determine who is impacted and would

qualify when everyone is impacted? First

come, first served? Target marketing efforts

at higher-dollar customers (i.e. small

business owners, etc.)?

How to handle redemptions/

payments? Offer discounted fees to existing

pawns for a period of time?

We are in a good position to help and to

survive during this type of crisis. How to build

goodwill and not be seen as profiteering?

I want to help the community, but

obviously can’t long afford to keep my folks

employed with zero/significantly diminished

revenue. Especially when sales are tanking

(except for laptops and video games).

Douglas Braswell

Braswell & Son Pawnbrokers

Little Rock, AR

From New Jersey, a pawnbroker said he

had two police officers come in to say he

would be fined for being open. He asked if

there was specific information to post and

provide for his area.

A pawnbroker in Georgia introduced “Car

Hop Pawn Shop” for disabled and elderly

customers who would rather stay in the car.


I asked why. She said someone musthave complained to them, but shedidn't know the specific reason. Peopleare calling, writing, or emailing all dayto complain about businesses beingopen. Typically, she said, they comefrom someone who saw too many carsin the parking lot or too many peoplein the store, or was just mad that abusiness was open.

I had my packet of informationshowing we were an essential businessready, but no, I needed to submit aformal response electronically. Shesaid she saw our signs limiting thenumber of people allowed, but that Istill had to submit documentation byApril 17. I was also given a copy of theOhio Department of Health’sAmended Director's Stay at HomeOrder.

It's not as if I didn't have otherthings to do, like running two pawnshops with a limited number ofemployees. Now I had to prepare aformal response to said order in threedays. As I recall, it took me about fourhours to complete.

OTHER SHOPSAs for other pawnshops around the

country, I have made a list of things Ihave read and heard (these may wellhave changed, but they’re work notingfor the record amid speculation thatthere will be another wave of thepandemic):

We have changed our hours from 9:00-5:30 to11:00-4:00. Working with 33 percent of our staff.Pawns, interest, purchasing only. No retail sales.We sell only jewelry and that requires too muchface-to-face personal contact. Our pawnwindows are behind bullet resistant glass. Washyour hands often and stay well. — DavidSchoeneman, Shane’s – The Pawn Shop, Inc.,Chicago Heights, IL

If you choose to close your shop for the healthand safety of your staff and customers, pleasepost on your building, website, social mediaaccounts: “ll pawn service payments will be sus-pended and no pawn loans will be forfeitedduring this time.” — Kelly J Swisher, ArlingtonJewelry and Loan, Inc., Arlington Heights, Ill.

Max Pawn, Las Vegas, is againoffering interest-free pawn loans — asthey did during the governmentshutdown — for those financiallyaffected by COVID-19’s economicimpact on Clark County residents. Thestore will request proof of economicimpact and asks that customers act ingood faith when requesting aninterest-free loan.

Here at EZ Pawn Corp. in NYC, I havedeclared a moratorium on forfeitures for 60 days.— David Kaminsky, EZ Pawn Corp., New York,NYA Louisiana pawnbroker said he

charges 10 percent interest and a 10percent handling fee per month. Hestopped charging interest, only thehandling fee. He froze all charges onitems that were currently in pawn for amonth. Further, he wasn’t forfeitingany past-due pawns and gave cus-tomers time to pick them up with nomore accruing interest and fees. Inaddition, he curtailed any additionalfees for items in pawn and gave a 30-day grace with no fees added to whatwas already due.

HANDLING PAWN FEESHow are you handling pawn fees at

this time? Pawnbrokers obviously needrevenue in order to remain open, butmany folks are suffering and could usesome help on their payments. Someideas:

Discount normal fee by some per-centage (50 percent off regular fees).

Charge a flat-rate fee for all pawnsmade in the last 30 days and for thenext 30 days until governmentassistance arrives ($10/month perpawn);

Forgive fees on existing pawn for 30days.

LOAN BALANCESPawnbrokers were also told at the

onset of the pandemic that we shouldscrape together every penny we couldget our hands on because the demandfor pawn loans would be going throughthe roof. We were advised not to make


COVERSTORY



Let’s go back to the basics for abrief overview of epidemics..

In the past hundred years, therehave been a number of epidemicsand pandemics that have had a dev-astating toll on human life, including:sleeping-sickness (encephalitislethargica) pandemic, polio epidemic,“Spanish Flu” pandemic, smallpox,Asian flu pandemic, Hong Kong flupandemic, HIV/AIDS, H1N1/09 swineflu pandemic, severe acute respiratorysyndrome (SARS), Ebola, the Zikavirus.

The definition of an epidemic is adisease that affects a large number ofpeople within a community, popu-lation or region. The definition of apandemic is an epidemic that’sspread over multiple countries or con-tinents.

A simple way to remember the dif-ference between an epidemic and apandemic is to remember the “p” inpandemic, which means a pandemichas a passport. A pandemic is anepidemic that travels.

But what really is a pandemic?A pandemic is a global outbreak of

disease. Pandemics happen when anew virus emerges to infect peopleand can sustainably spread betweenpeople. Because there is little to nopre-existing immunity against the newvirus, it spreads worldwide.

A coronavirus is not new. There aremany types of human coronaviruses,including some that commonly causemild upper-respiratory tract illnesses.

On Feb. 11, 2020, the World HealthOrganization announced an officialname for the disease that is causingthe strain of coronavirus outbreak thatwas first identified in Wuhan, China in2019. The new name of this disease is“coronavirus disease 2019,” abbre-viated as COVID-19: ‘CO’ stands for‘corona,’ ‘VI’ for virus, ‘D’ for diseaseand 19 for 2019. Formerly, this diseasewas referred to as “2019 novel coron-avirus” or “2019-nCoV.”

GlobalOutbreak


COVERSTORY

loans on junk because everyone wouldbe bringing in everything they had for aloan.

Just the opposite has happened. Ourcustomers are picking up their pawnloans and buying everything in sight.Well, not everything, but TVs, videogame systems, computers, tablets andsuch. I’ve even seen a surge in musicalinstrument sales. I interpret this largelyto people being stuck at home withtheir children.

It’s quite normal for loan balances todrop the first quarter of the year due totax refund season. But this year hasbeen different. It’s a compoundedredemption season: the tax refundseason, the stimulus money, and theunemployment money. Many recipientsare making more on unemploymentthan they did working.

The end result is that our loanbalances have taken a big hit. If loanbalances drop, finance-charge incomealso drops. And if items are not in pawnor being pawned, forfeitures will dropin the next few months, which will leadto fewer items on our shelves for sale.So sales will drop. It looks like oneaction feeds many others.

WHEN WILL IT END?I first thought this pandemic would

be over by the time I finished thisarticle, let alone by press time anddelivery, but it isn’t looking like that willbe the case.

Now we’re hearing speculation thatthere may be a second round of virusoutbreak in the fall, and maybe againnext year. This means social distancing,masks and restrictions on the numberof people allowed in a business may behere for a long time.

Many other businesses will be forcedto close permanently because of the lossof business and inability to cope withthe new normal.

How are we supposed to sell jewelry ifwe have to stand six feet away? To sellone ring, you often have to allow thecustomer to try on a half dozen, and

this amounts to extended close-quarterscontact. Not to mention having tosanitize every ring, watch, earring,bracelet or other jewelry item acustomer tries on. Yes, it’s possible, butnot pleasurable.

And then there’s the panic buying offirearms and ammunition that thosewho sell these items have all expe-rienced. Are these people going to shootthe virus? Protect their toilet paper? Orare they just afraid of the unknown andof everyone who was acting crazy?

We have also just gone through ourannual tax refund season, which mayhave offset the impact of the virus onour pawn businesses.

We can’t keep our display shelves full!Our showrooms are empty. Is that agood thing? It depends on how youview the situation. Customers like to seeitems available for sale on your shelves.It makes them think you are a suc-cessful business and someplace they’dlike to shop or pawn.

As for existing pawn loans, manypawnbrokers, including myself, havedecided not to forfeit most pawn loansfor 30/60/90 days. This also means ourshelves aren’t replenished as normal.

On top of that, not working orworking from home has caused manyto spend less than before. Not beingable to go out and eat, drink, go toconcerts, sporting events, theaters,entertainment and such, while not goodfor the overall economy, has resulted inincreased savings for a lot of people.And for those who may often fall shorton cash and seek our pawn services —well, they’re not pawning at themoment.

As I sit back and think about thisCOVID-19 pandemic situation, it willbe one for the history books. We wereunprepared. But how does one preparefor a worldwide catastrophe that may ormay not happen again?

Do you remember the fallout sheltersof the late 1950s and early 1960s? Lotsof time and money were spent toprovide for a supposedly safe spot for ashort period of time (Or they thoughtthey would be safe. Thankfully, we

never had to find out).I hope we can learn from our

mistakes and lack of preparedness forfuture issues. But I doubt it. Every eventor disaster comes with its own uniqueset of guidelines.

Many of us have limits to the numberof customers allowed in our pawnshopsat one time. Too many people and weare required to stop them at the doorand ask them to wait outside. That issurely not good for business.

I had this experience at a local homecenter not too long ago. There was along line of people outside theentrance, all standing six feet apart. Asone customer left, another was allowedto enter. Many potential customerswalked up, got in line, and after a shorttime left. They weren’t going to wait.

As long as there is social distancingand restrictions upon the number ofcustomers allowed to be in a business,we won’t be back to the old normal.

We're going to survive this pandemic,but things are going to be different for awhile. Life and business as we know it isgoing to change. Yes, people will stillneed money, and I have read that papermoney was often cited as a means oftransferring this virus (true or not). Thiscould be another factor which helpsmove us towards a cashless society.

Welcome to the new normal. And tothink, I thought the old days were oftenbad .

Ric Blum, Certified Pawn Professional, is a vice presidentof Ohio Loan Co. in Dayton, Ohio. He has served as pres-ident of the Ohio Pawnbrokers Association,secretary/treasurer of the National PawnbrokersAssociation, and as a member of the board of directorsand the board of governors of the National PawnbrokersAssociation, Ric was named the National PawnbrokersAssociation Pawnbroker of the Year in 2014, named theOhio Pawnbrokers Association 2015 Ohio Pawnbroker ofthe Year and received a Lifetime Achievement Awardfrom the Midwest Pawnbrokers Association in 2017.Please feel free to e-mail your comments or tips that youwould like to see included in this column [email protected] or mail them to Ric Blum, Ohio LoanCo., 3028 Salem Ave., Dayton, OH 45406.


COVERSTORY


State Responses VaryThroughout the COVID-19 pandemic,

a plethora of laws, rules and orders wereinstituted, changed, updated or rescindedin this country. Here are sketches of a few,starting on the state level. (Some of thismay well have changed by the time youread this, but the information is worthnoting amid predictions of a second waveof the disease.)

OHIOWhen Governor Mike DeWine had

the director of the Ohio Department ofHealth prepare a stay-at-home order —one of the first such state measures — itlisted exceptions for those in essentialbusinesses and operations. Pawn-brokers were included in the list fromthe beginning.

ILLINOISPawn shops in the Prairie State were

declared financial institutions andessential businesses, and were generallynot affected by the state’s stay-at-homeorder.

FLORIDAThe Sunshine State’s stay-at-home

order was very similar to others, but someareas — primarily in South Florida —didn’t recognize pawn shops as essentialbusinesses. Florida Gov. Ron DeSantishas largely remained on the sidelineswhile each county does its own thing.

Broward County, the state’s second-most populous county, just north ofMiami-Dade, specifically excludedpawn shops in its definition of essentialfinancial institutions. It required inputfrom the Florida Pawnbrokers Asso-ciation, the National Pawnbroker Asso-ciation’s published documents, a fewlarge public pawn corporations andmany local pawnbrokers to educatethese local governing bodies.

“You cannot imagine how helpful ourNPA team has been in providinginstant support in this battle. Worthmany times the price of membership,”one pawnbroker said.

MARYLANDThe stay-at-home order in Maryland

specifically included non-bank lendersunder the essential financial-servicescategory — but some state and local lawenforcement agencies used their owninterpretations.

A local state trooper tried to close onepawn shop because he didn’t thinkpawnbrokers were non-bank lenders.That was later corrected when pawnshops were specifically recognized asnon-bank lenders.

“Just a heads-up to Maryland pawn-brokers. I had a state trooper in my shopargue with me for an hour that I amsupposed to be shut down. I showed himeverything the NPA and the State ofMaryland provided and he didn't thinkpawn shops were non-bank lenders?With thanks to Michael Cohen from TopDollar Pawn, I was able provide a copy ofan email from the State Police that saidspecifically we were exempt. He stillwouldn't accept it until I was able to get acopy emailed to him directly from ourlocal sheriff department.

“Very polite, very professional, butdidn't really care what I had to say. So, Iwould suggest getting a copy of theemail forwarded to you from your localRAPIDS administrator and have it onhand,” stated Eric Kovandzic, CalvertPawn, Prince Frederick, Md.

NEW YORKLike many other states, New York has

had its own stay-at-home orders andlist of essential and non-essential busi-nesses. But while pawnbrokers madethe cut as financial institutions, theywere limited to operating in theirfinancial-institution capacities.

“With respect to business or entitiesthat operate or provide both essentialand non-essential services, supplies orsupport, only those lines and/or businessoperations that are necessary to supportthe essential services, supplies, or

support are exempt from the workforcereduction restrictions,” according to NewYork’s initial executive order.

KANSASGov. Laura Kelly issued an executive

order establishing the Kansas EssentialFunction Framework. It included astay-at-home order but exempted thosewho provide consumer and commercialbanking services.

DELAWAREThe state closed pawn shops as part

of its state-of-emergency provisions asof April 7. Some media coverage helpedpawnbrokers get the attention of thegovernor’s office, and pawn shops wereallowed to open by appointment.

WISCONSINOn May 13, the Wisconsin Supreme

Court ruled that the state’s stay-at-homeorder was “unlawful, invalid and unen-forceable.” Many cities and countiesmade their own orders, which essen-tially mirror the state’s mandate. Thiswas clearly a politically motivated moveby one political party toward the other.

LOCAL AUTHORITIESOn the local government front, there

were some notable developments.In the southeast part of Florida, after

some confusion, Miami-Dade CountyMayor Carlos A. Gimenez clarified May1 that pawn shops may remain openunder USA Patriot Act requirements.

A Grants, N.M., pawn shop was issueda cease-and-desist order for defying astate Department of Health order to shutdown because it is non-essential. Theywere fined $60,000 ($5,000 per day).

The biggest local issue arose in Texas.Judge Clay Jenkins of Dallas County tookit upon himself to issue a Declaration ofLocal Disaster for Public HealthEmergency that rewrote the state pawn-broking statutes. As of April 6, he limitedcustomers to only one at a time, reducedfinance charges and extended hold times.

With the easing of restrictions surroundingthe COVID-19 outbreak, pawnbrokers arestarting to bring their brick-and-mortar oper-ations back to full speed. Laid-off employees arebeing called back, opening times are going backto pre-COVID-19 hours, and marketing isreminding customers that you’re available toserve them.

A successful re-entry program will ensure thesafety of employees and customers, obviatecharges of discrimination and invasion ofprivacy, and avoid actions that inadvertentlyviolate federal, state and local employmentlaws.

Maybe the greatest challenge is convincingeveryone — employees and customers alike —it’s safe to come into your store. “Many peopleare still scared, and their fear is valid,” says BillHagaman, CEO and managing partner ofWithum. “The risk of the virus impactingsomeone at any moment continues to be veryreal.”


COVERSTORY

brinGing peoPlEbaCk

Set the stage for success with astrong programBy PHILLIP M. PERRY


COVERSTORY

It stands to reason, then, thatoperators must ensure no one gets sickby visiting their stores. But the reasonsfor doing so go beyond health andmorale. Work related illnesses canspark injury lawsuits, workers compen-sation claims, or charges the employerfailed to provide a safe workplace asdefined by the Occupational Safety andHealth Administration.

“As employers put in place theirreturn to work programs, they mustaddress legal issues concerning thesafety of employees, vendors, suppliers,clients, and customers,” says PaulEvans, a partner in the Employmentand Compensation Practice Group inBaker & McKenzie's New York office.

CLEANING UPSafety programs should begin with

the physical plant. “The store must bethoroughly clean,” says RichardAvdoian, an employee developmentconsultant in Metropolitan St. Louis.

“Attention must be paid especially tothe common areas, restrooms, counters,

chairs and desks. Sanitizing gels shouldbe made available throughout.”

Some operators will need to retooltheir entire workplace footprint,allowing space for sufficient social dis-tancing by customers and staff. Work-stations can be spread apart to the req-uisite six feet of separation. Plexiglassbarriers can be installed where appro-priate.

The back office may also needattention. “Businesses with an openmodel concept will have to consider

whether it needs to be modified,” saysBob Gregg, co-chair of the EmploymentPractice Law Group at Boardman andClark, Madison, Wis. “People will notwant to sit out in the open with otherssneezing.”

Stores may also need to modify long-standing work areas. In break rooms, asingle serve machine might replace agroup coffee maker. Conference roomchairs might be removed so people cansit far enough from one another. And


the job of turning on the lights might beassigned to one person.

Signs posted throughout the store canremind everyone to maintain propersocial distancing, keep washing theirhands and wear their masks.“Employers should ensure theirworkers refrain from unnecessarytouching or congregating in break andconference rooms,” says Susan GrossSholinsky, vice chair of theEmployment, Labor & Workforce Man-agement practice of Epstein, BeckerGreen in New York.

In deciding what to do and not to dowith their workplaces, businesses canobtain guidance from the government.Local and state authorities are issuingdiscretionary guidelines and mandatorydirectives.

Some are very detailed, limiting thenumber of people permitted in a store,for example, to 25 percent or 50 percentof its normal capacity. At the federallevel, several agencies are issuing returnto work advisories ranging from socialdistancing to the ventilation of work-spaces to health screenings foremployees. (See the Sidebar, “Resourcesfor Re-Opening” for links to theseagencies and to the National RetailFederation.)

TAKING TEMPERATURESFederal and state authorities are also

offering guidance on a popular methodfor reducing the risk of infection: takingthe temperatures of arriving employees.

“The prevailing guidance from theCenters for Disease Control and Pre-vention is that any temperature above100.4 degrees warrants sending theemployee home for the day,” says Evans.

“If the temperature is above normal,but below 100.4 degrees, then theguideline is to wait 15 minutes and takethe temperature again to see if it goesup above 100.4.”

Advisories are also available fromlocal and state authorities at variouslevels of detail. “Temperature checksmay be more important in hot spotsthan elsewhere,” says Evans.

Health procedures of any kind poselegal issues. “Taking temperatures aspeople come into the workplace startsto raise wage and hour questions ifpeople must stand in line,” says Gregg.“Employers need to ask, ‘How manyminutes are workers standing?’ And‘Should they be paid for thoseminutes?’”

Privacy issues may also arise. “Whatdo you do if a person has a fever?” posesGregg. “How do you respond in a waywhich does not single them out? Youdon't want a gong to go off or to letothers see you shuttle them to a holding

pen. You want to handle things in a waythat does not violate privacy.”

If doorway health inspections helpboost morale, employers should realizethey are not sure things. “An individualcan be infected with COVID-19 withouthaving a fever,” says Evans. “However,the medical community still seems tothink of temperature checks asimportant tools for ensuring workplacesafety.”

GRADUAL RETURNSNo safety plan can succeed if too

many people crowd into the store andback office, placing themselves andothers at risk.

“Employers should consider the feasi-bility of staggering shift times or ofestablishing an alternating workday orworkweek schedule,” says Sholinsky.“They should be flexible and creative indeveloping policies that maximize pro-ductivity and ensure the highest levelsof safety.”

If some employees are too eager toreturn, others will be fearful of doing sotoo quickly. Allowing those individualsto continue to work remotely, ifpossible, may help obviate safety risks.

“If your business is set up for someemployees to work from home, thenconsider allowing them to continue todo so,” says Hagaman. “Give specialthought to parents of school-agedchildren in states where schools haveshut down for the remainder of theyear. Remote working capabilities canalso protect employees who take publictransportation to work by limiting theirexposure.”

AVOIDING DISCRIMINATIONEmployers need to avoid intentional

or nonintentional discrimination in thepool of people returning to work.

“When everyone is not recalled, somepeople are laid off,” says Gregg. “Thedemographics of the exceptions shouldbe worked through.” There should be nopattern by age, disability, race or gender.

Particular care should be taken ifsomeone in a managerial role isoverheard saying the pandemic has

BRINGING PEOPLE BACK, from page 17


COVERSTORY

Resources for Re-opening

Businesses looking to create a safeand efficient back-to-work program mayobtain guidance from these sources.

The National Retail Federation haspublished a 10-page “Operation OpenDoors Checklist” that covers a host ofareas such as preparing stores foropening, dealing with employmentmatters, promoting contactlessshopping, and adequate cleaningroutines. (Navigate to nrf.com and click“Operation Open Doors.”)

The Centers for Disease Control andPrevention offers guidance on decidingwhen and how to open, cleanliness anddisinfection, and reducing the trans-mission of infection among employees.(Navigate to cdc.gov, then click on“Learn More About Covid-19” and then“Businesses and Workplaces.”)

The Occupational Safety and HealthAdministration offers guidance on howCovid-19 spreads, how to assesspotential hazards, and how to controlthe risks to workers. (Navigate toosha.gov, then click on “Coronavirusresources” then “Control and Pre-vention”)

State and local agencies also maintainwebsites with helpful materials.

created a golden opportunity to notbring back a “difficult” employee.

“You have to take a step back andfigure out why the employee is labeleddifficult,” says Gregg. “Is it because ofpoor performance, or because they havespoken up on protected matters con-cerning safety or employment?”

The law explicitly prohibits adverseactions against anyone who has takentime off as a direct result of the COVID-19 outbreak.

“Employers may be subject to retal-iation claims when employees are ter-minated or otherwise subject to adverseemployment actions after they havetaken sick leave, a leave of absenceunder the Family and Medical LeaveAct, or under a COVID-19-specific law,such as the Families First CoronavirusResponse Act,” says Sholinsky.

ACCOMMODATING DISABILITIESThe Americans with Disabilities Act

and equivalent state and local lawscreate an especially hazardous legalterrain. An employer should not deny arequest to work from home if thatarrangement would be a reasonableaccommodation for a COVID-19related disability.

“There may be a charge that theemployee should have been allowed towork remotely if that individual has acompromised immune system or a con-dition identified by the CDC as one thatwould make the employee more vul-nerable to being sickened by COVID-19,” says Sholinsky.

Ironically, the prevalence of remotework arrangements in recent monthsmay have weakened employers’ tradi-tional legal defenses in this area.

“Given that employers allowed peopleto work from home for so long duringthe pandemic, it may be much moredifficult to claim undue hardship as abasis for denying a request to do the

same as an accommodation under theADA,” says Gregg.

It may be wise now to record any inef-ficiencies that have arisen from recentwork-from-home activity. “Waiting todocument difficulties until after arequest for continuing home-basedwork is made will seem like an after-the-fact justification,” says Gregg. “Thatcarries much less weight with investi-gators or courts.”

The ADA legal coin has an obverseside. “Some employers may decide tokeep people with underlying con-ditions, the at-risk folks, out of theoffice,” says Gregg. “The fear is that ifthey come back they will be more sus-ceptible to catching the virus with amore serious result.”

Yet excluding at-risk people can betricky. “Who is at risk?” poses Gregg.“Anyone over the age of 60. So, theemployer is tempted to say, ‘Olderpeople cannot come back.’ Well, that



COVERSTORY

means they cannot earn money andthat can create an age discriminationissue.”

The decision to exclude people from aback to work program must be basedon more than a stereotypical pre-sumption, says Gregg. The ADA’s“direct threat standard” states thatemployers can exclude workers onlywhen there is actual evidence that theypose direct threats to themselves orothers—perhaps because they have toldthe employer they have an underlyingcondition or they have a relevantsymptom.

The need for a direct threat extends toa requirement for a medical exami-nation. “The employer cannot sendsomeone to the doctor to validate thatthey are okay to come back to work, ifthat same requirement was not madefor everyone else,” says Gregg. “Thereneeds to be more than a perception of adisability to send a person to thedoctor.”

Attorneys caution that pay equiv-alency is not a defense against discrimi-nation in these cases. “Even if the salarywould be the same, the individual madeto stay at home may lose out onvaluable perks of actually working atthe store or office,” says Gregg. Thesemight include commissions, contacts,or just generally being “in the know.”

“They might even miss out on pro-motions: If you are not seen, you arenot considered,” says Gregg. “So if youpick and choose who stays home, youhave to be careful about picking somepeople and not others.”

The above considerations apply toemployers of all sizes: While the ADAcovers businesses with 15 or moreworkers, most states have similar lawsfor smaller organizations.

WORKER COMPLAINTSAs careful as an employer may be in

designing a safe and effective back towork program, it’s likely that noteveryone will be pleased.

“Employers should put mechanismsin place to deal with complaints about

working conditions, including practicessuch as social distancing to ensure thesafety of the work environment,” saysEvans.

“Some people may feel the employerhas not gone far enough or has notenforced the rules appropriately.Employers need to be ready to makenecessary changes and ensure there isno retaliation against people who filecomplaints. This is important from thestandpoint of both employee relationsand whistleblower laws.”

Managers and supervisors, too,should receive special training on thenew workplace rules and how torespond if anyone complains aboutthem or refuses to cooperate. A pointperson can help.

“One way to minimize risks is toestablish a reopening coordinator whounderstands all of the moving parts of aback to work program,” says Evans. “It’sgood to have someone who makes surepeople understand the rules and theirresponsibilities.”

POSITIVE TONECreating a safe store is one thing.

Building the trust of employees isanother. People must understand thateverything possible has been done toprotect their health and safety.

“Transparent communication iscritical right now,” says Hagaman.“Employers need to prevent confusion

among their work teams by answeringtheir questions before they re-enter theworkplace.”

Hagaman suggests addressing thesequestions: How will you assess thehealth of your employees prior towalking into the building? Where willyour employees find supplies such asface masks and sanitizing wipes? Whatparts of their workspace will be closed?Will conference and break roomsremain open? And who will be allowedin the building, and when?

Not the least of challenges is that ofcommunicating the panoply of newprocedures to employees who may feeloverwhelmed by a long list of to-dosand do-nots.

Some employers are sending emailbroadcasts with answers to suchquestions. Others are postinginformative signs in the workplaces.And others are packing personal pro-tective gear into “goody bags” andhanding them out to returningemployees.

All such steps can calm fears. Andgiven the negative emotions that havesurrounded the COVID-19 outbreak,employers should try to present theircommunications in a forward-lookingspirit.

“As people start re-entering theworkplace, employers might create areturn-to-work rally with a positivetone, applauding the performance ofthe staff in light of everything that hashappened,” says Avdoian. “And as thingsmove forward one way to encouragegood morale is to ask for volunteers toserve on a committee that addressesstaff concerns.”

The pandemic itself might presentpawnbrokers with the opportunity toretool their operations, finding ways towork more productively and to utilizetechnology more efficiently.

“We should create new policies andprocedures in response to the pandemicas we do when faced with any obstacleor challenge in the business world,” saysAvdoian. “We are always looking forways to enhance our services. This isanother opportunity to do so.”

BRINGING PEOPLE BACK, from page 19


COVERSTORY Creating a

safe store isone thing.

Building thetrust of

employees isanother.

I sent out an email on my thoughts ofhandling customers’ jewelry during thispandemic. I have since received somevery good suggestions from jewelers ondoing a better job and want to sharethese with you.

Also, I found some places for you toorder hand sanitizer, facemasks andalcohol.

The best and easiest solution to start isan item you can hardly find: Clorox Dis-infecting Wipes. Since they are so dif-ficult to find and we need even bettercleaning solutions, we’ll go a differentroute:


COVERSTORY

handlinG jewElryduring the Pandemic

Sometimes the simplest waysare the best.

By DAVID GELLER

I had recommended some cleaningsolutions for the front counter:

• Barbicide• UV cleaning machine• AlcoholI recently received a very detailed

email from a jeweler named Annie whowas originally trained as a nail tech-nician.

I looked it up, and you do have to gothrough training and a state licensingtest. Who knew?

Her email was quite detailed, so Ibelieve and recommend what she said,and will share her information.

BARBICIDEBarbicide was invented in 1947 for

the barber and hair style industry.When you get your hair done, next tothe mirror is a tall jar of blue or greenfluid in which combs and brushes sit forcleaning. You buy it by the gallon.

This fluid will kill all viruses,

including COVID-19. Because this killseverything, I had recommended it todip jewelry and thought a quick dipwould do it.

Annie’s email corrected me:A. It’s not a quick dip. Items must stay

in for at least 10 seconds. That’s not thatlong but —

B. The item must be cleaned first. Soextra work.

So, this is no longer a first choice forme. Still good, but not my first choice.

UV SANITIZER MACHINEA jeweler told me he had found a UV

sanitizer machine for jewelry. I had rec-ommended one made for cell phonesthat should work.

UV sanitizers are used for hospitalmedical equipment and to sanitizerooms. I had found a machine that hadthe UV sanitizer along with a steamerand ultrasonic.

It’s a home unit, so it’s not industrial

strength. It’s called Trioshine, and costs$199.

Annie’s email pointed out:A. The UV light must hit every spot to

be cleaned directly. So it won’t affect theareas underneath rings, behind stones,etc.

B. To be effective, the light must bedirected to the object for at least 30minutes.

C. A very good UV cleaning machinecosts thousands of dollars, nothundreds.

This is completely off my list.

ALCOHOLThis is the ticket! Your mom and your

doctor used alcohol on cuts andscrapes.

Seventy percent isopropyl alcohol isthe way to go. A 70 percent concen-tration is what it takes to kill microbes,and it’s safe for almost all jewelry. A



COVERSTORY

minimum 10 second dunk is all it needs— 10 seconds.

This is my choice to use at thecounter.

I had read that 60 percent alcoholand some water mixed in would do thejob, but that turned out to be falseinformation. Use 70 percentisopropyl alcohol.

If you can find it in local stores, buy it.Here are a few sites I found that sell it

by the gallon. Amazon had it but soldout:

eBay: $38 to $70 plus shipping.Uline: Four 1-gallon containers $88

plus shipping. Sam’s Nail Supply: $27 +Shipping. Free shipping if over $100.

Plus Sam’s has masks & latex gloves.I’ve had many people ask me about

cleaning watches, most likely for batteryreplacement. My suggestion would beto soak a paper towel with alcohol andrub over the watch case/crystal andband as well as possible. Once you openthe case, I don’t see a problem insidethe watch. I’d for sure wash my handsafter handing the watch back to thecustomer.

Sam’s Nail Supply sells latex glovesyou could use, and I’ve taken here athome to using the rubber gloves we useto wash dishes. Durable and reusable.So, after we handle things with thesegloves, we use soap and water and cleanthe gloves just as if it were our skin.

ULTRASONIC MACHINELet’s not forget our trusty ultrasonic

machine. I always used L&R ammo-niated ultrasonic solution in our shop inthe ultrasonic. I received an email froma jeweler who sent me a link that showsno matter what solution is inside themachine, the actual ultrasonic wavesthemselves kills viruses.

The whole article is athttps://bit.ly/2UpzNy1 but I havecopied and pasted the most importantparagraph below. The thing is, you haveto take the jewelry to the ultrasonicmachine. If the item can be placedinside your ultrasonic and steamcleaned, you could bypass the alcohol,

just lay it on a towel/plate, take toultrasonic, use tweezers to insert, andthen steam and feel confident.

Ultrasonic cleaners use sound wavesproduced at frequencies higher thanour ears can perceive. The processinvolves the use of a generator, called atransducer, in a water tank, whichcreates high-frequency sound waves.

As the sound waves move through theliquid, they create compression wavesthat “tear” the liquid apart, leavingbehind many millions of microscopicvoids or partial vacuum bubbles. (Thetechnical name for this effect is cavi-tation.)

These small bubbles expand andeventually implode when they strike anobject, and this energy dislodges con-taminants even from intricately shapedsurfaces.

I’d still recommend a dip in thealcohol pool first.

MORE1. A jeweler’s pickle pot will of course

kill viruses, but it’s nasty and not usuallyused by the sales staff. This is a benchjeweler item.

2. For an easy take in, try the small ziplock bags we use. Open it up and allowthe customer to drop the item in there.If all you need to do is look throughyour loupe for a basic pawn or repair,then this would work just fine. If moreserious examination is necessary, thenyou would need to perform a morethorough cleaning first.

Thank you to all who have emailed

me, but especially, a big shout out toAnnie for her valuable tips.

PROMOTE HOUR SERVICELastly, many stores across the country

are starting to open; some have to waita bit longer. Reports I receive are, ofcourse, mixed. It will just take a whilefor business to reach former levels.

This said, however you market I’drecommend urging customers to gettheir “yukky, gross, dirty, germ-ladenjewelry” cleaned at your store imme-diately.

My book suggests charging forcomplete refinishing. Maybe for thistime we would do much of this at nocharge to:

• Get store traffic• Do something nice for our fellow

humans• Maybe get some repairs from

inspectingAnd remember, every piece of jewelry

in your showcase which you hand to apotential customer needs to be cleanedbefore it goes back on display.

Here’s wishing you the best.

David Geller is the author of Geller’s Blue Book toJewelry Repair & Design, a pricing book for makingmoney in repairs and custom design for jewelers andpawnbrokers, and is a consultant to jewelers on storemanagement. You may reach him at [email protected], (888) 255-9848 or (404) 255-9565, orthrough his website www.JewelersProfit.com. His repairpricing book is made for the counter at take-in. It's puttogether to make it easy for the staff to use but there isalso some free video training on his website. There istraining for each chapter of the book, and he also trainsyour staff how to sell repairs. Just go to www.jewelerprofit.com/trainingvideos.html — the password is geller.

HANDLING JEWELRY, from page 23


COVERSTORY Urge customers to get their

“dirty, germ-laden jewelry”cleaned at your store immediately to build

store traffic.


Inspecting jewelry is a necessarypart of establishing the correct valuewhen someone seeks a pawn loan. Buteven if a loan is not made, a pawnshopcould still face a legal fight. After anOhio pawnshop declined to make aloan on a pendant, the pawnshop wassued when the owner of the pendantclaimed that it had been damagedduring the inspection.

On Aug. 11, 2015, a woman, whosefirst name was Blanche, visited an Ohiopawnshop. She was interested inobtaining a loan on a sterling silvermetal cross with diamonds (pendant).Blanche had previously pawned itemsat the store.

The pawnshop clerk asked Blanche toallow him to inspect the pendant, towhich Blanche agreed. The clerkremoved the pendant from Blanche’s

line of sight and inspected it. The clerkthen returned the pendant to Blanche,declining to make a loan. Blanche didnot sign any paperwork or otherwiseprovide any information to thepawnshop.

After leaving the store, Blanche dis-covered that the pendant had been cutand some form of acid poured over thependant. She had no further contactwith the pawnshop.

Blanche believed that it would costapproximately $40 to $45 to fix thependant.

Blanche filed suit against thepawnshop in the United States DistrictCourt for the Southern District of Ohioas a class action. She brought variouslegal claims including: (1) Trespass toChattels, such as the direct interferenceand injury to property owned byanother person; (2) Fraudulent Con-

cealment/Nondisclosure; (3) Breach ofBailment such as a breach in the rea-sonable duty to care when taking tem-porary possession of someone’sproperty; (4) Violation of OhioDeceptive Trade Practices Act; (5) Vio-lation of the Ohio Consumer SalesPractices Act and (6) DeclaratoryJudgment/Injunctive Relief.

The pawnshop filed a Motion forPartial Judgment on the Pleadings.Blanche filed a Memorandum in Oppo-sition, and the pawnshop filed a Reply.

At issue here, said the court, wasBlanche’s Fifth Claim — Violation ofthe OCSPA, which she brought onbehalf of herself and the Ohio subclass— consumers who had jewelryappraised and inspected by thepawnshop in Ohio. Specifically, Blancheclaimed that

1. The pawnshop had committed and

Definition at Center of Lawsuit A damaged pendant leads to a suit centering on whether a customer transactiontook place. By Richard Weatherington

THE LAW

continued to commit unfair and deceptive practices in con-nection with consumer transaction, namely damaging con-sumers’ personal property.

2. The pawnshop committed and continued to committhese unfair and deceptive acts.

3. The pawnshop’s unfair and deceptive practicesdeceived Blanche and the Subclass.

4. Blanche and the Subclass had been damaged as adirect and proximate result of the pawnshop’s deceptiveand unfair practice.

5. The pawnshop violated the Ohio Consumer SalesPractices Act.

The District Court noted that a motion for judgment onthe pleadings under Rule 12 of the Federal Rule of CivilProcedure is analyzed using the same standardsapplicable to a motion to dismiss under the Federal Ruleof Civil Procedure.

To survive a motion to dismiss, a complaint mustcontain (1) enough facts to state a claim to relief that isplausible, (2) more than a formulaic recitation of a causeof action’s elements, and (3) allegations that suggest aright to relief above a speculative level.

A claim, said the court, has facial plausibility when thepleaded factual content allows the court to draw the rea-sonable inference that the defendant was liable for themisconduct alleged. Although the plausibility standard isnot equivalent to a probability requirement, it asks formore than a sheer possibility that a defendant had actedunlawfully.

The District Court noted that in reviewing a motion todismiss, it must “construe the complaint in the light mostfavorable to Blanche, accept her allegations as true, anddraw all reasonable inferences in favor of Blanche.

The Federal Rule of Civil Procedure requires only a shortand plain statement of the claim showing the pleader isentitled to relief. Specific facts are not necessary; thestatement need only give the defendant fair notice of whatthe claim is and the grounds upon which it rests.

The OCSPA sets forth standards of conduct for suppliersof consumer goods in connection with consumer trans-actions. The OCSPA defines “supplier” as a seller, lessor,assignor, franchisor, or other person engaged in thebusiness of effecting or soliciting consumer transactions,whether or not the person deals directly with theconsumer. For purposes of the pawnshop’s motion only,the pawnshop did not dispute that Blanche was aconsumer and it was a supplier.

Ohio Revised Code (“R.C.”) Section 1345.02(A)provides: “No supplier shall commit an unfair or deceptiveact or practice in connection with a consumer transaction.Such an unfair or deceptive act or practice by a supplierviolates this section whether it occurs before, during, orafter the transaction.” Whether a consumer transaction




I hope you are all up and running andback to some semblance of normalcy inthe crazy world we are all experiencingright now. I wish you all the very best ofhealth, happiness, success and safety,always.

I wanted to do something differentfor this column, instead of writingabout silver or gold prices. I decided Iwould list in random order a variety ofquestions I have answered in my 20-year career in the refining industry.

I hope you will find this extremelyhelpful and will want to print thisarticle out, post it on a board and shareit with your managers and employees,both new and experienced.

I like to try to think outside the box,and I know we all have to do that moreoften as the world changes.

Be adaptive, listen, speak, learn,teach, be caring and helpful both inyour personal lives and your work lives.Let’s all be better —myself included.

Question: Should I separate scrap Iam sending to my refiner by karat?

Answer: It’s OK to keep it separated

— not betteer or worse. It does make iteasier to identify any mistakes inshipping weights that may occur.Sometimes we at Geib Refining willsplit off a larger amount of one karat tomelt and assay separately. Refining lotsare treated the same whether they aremixed or sent in as separated karat.

Ultimately, everything gets meltedtogether and becomes an alloy of thekarats. Whatever is best for you worksfor me and I’m sure other companies aswell.

Q: What is the best method to testgold scrap?

A: It’s best to use up-to-date acids,scratch and use your senses. Gold isodorless and won’t smell like iron.Check stamps, file and place aciddirectly on the piece whenever possible.Kee testers are great for scrap as abackup, and coin testers like SigmaMetalytics are helpful.

Magnets are also an essential first lineof defense for gold-plated-over-ironmaterials. Karat gold-plated-over-copper/ brass will not be attracted to a

magnet, and thus sometimes may foolyou.

Q: Will I get paid for silver and othermetals in my scrap?

A: You should get credit for both goldand silver in most cases, but it dependson what the materials are. If you aresending high-grade 22kt gold, theamount of silver will be a lot less than ifyou are sending in materials thataverage 45 percent gold. If we findplatinum or palladium in recoverableamounts, we will pay you for them.

Talk to your refiner and find out whatyou are being credited for and the what-ifs of other metals if recovered duringthe refining process.

Q: Why don’t you offer free shipping?A: There is no free shipping. Don’t

buy into it. Someone has to pay for it,and it will be you. Free shipping at$1,700 market is .032 troy ounces ofgold to cover that cost. Would younotice that? Probably not.

Tell your refining company you wantto pay for shipping, but you want a full,honest accurate account of your metals

FIRESIDE CHATBy PETER B. SPECTOR

The Straight Reference Guide to Scrap

FIRESIDE CHAT


— you should always sleep well at night,knowing liberties are not being takenwith your shipment.

The same hold true for $25 coupons— .015 toz will cover a $25 free coupondiscount. You won’t miss it, but you willthink you are getting it free or dis-counted when you are really paying forit. I don’t like games.

Q: Can I put sterling silver, pure silverand 80 percent silver in the same silvershipment?

A: Yes. If you have pure bullion, youwant to bag or box it separately, as mostrefiners will pay you more for the pureand pay without refining charges.

If you don’t have pure bullion, youwant to be careful of putting too muchlower-grade silver in with higher-grade.You do not want to bring the assay downbelow a certain level, or that couldchange the terms/schedules and may bea lesser percent payable. Best to keep itover 80 percent accountability. Or send40 percent in alone if you have enough.

Q: What’s the best way to ship metalsto my refiner?

A: It’s best to ship high-grade karatscrap FedEx priority overnight, orsecond day if it is of lesser value. I likeFedEx ground for silver and polishingdust shipments.

You can use USPS regular insured,but it sometimes can take seven to 10days. That can make people like me alittle more nuts waiting.

Make sure materials are double-boxed, securely sealed, and there is apacking list inside the inside box.

Q: Will I get back all my diamondsand stones that I send to you in a stoneremoval lot?

A: Yes. If you trust your refiner, thentrust this process too. We have no need,want or use for diamonds. It’s not ourbusiness.

You will get all your stones returned,separated, and the diamonds will beseparated from color goods. Thediamonds will always be frosted tocloud the CZs to easily pick them out.

We offer a service to get yourdiamonds quoted and paid for, but Ilike to just send them back to most of

my clients to use for repairs, in jewelryto sell or to take to trade shows to sell.

Q: Can I send something to be X-rayed if we aren’t sure of the karat orwhether it’s real?

A: Yes. We are happy to X-ray bars,rings, and the like. No charge. Mostrefiners will do this for their clients. Askthem to X-ray report, and either add tomelt or return alone or at same time asthey return stones to cut down onshipping expense.

We always send back magnetic or no-value goods so our clients can learnfrom them and see where mistakeswere made.

Q: What is the best way to find a rep-utable refiner to work with?

A: Ask your fellow pawnbrokers. Talkto people at shows or in Facebookgroups.

Don’t settle on a company becausethey offer free giveaways. See what theysponsor, see who uses them and figureout who youcan have a rela-tionship with— a realfriendship. Youwill use acompany, butyou will rely onyour sales-person or rep.

Q: Can I lockgold before Iship?

A: Yes. Youcan lock metalsany time before,during or afterthe process.Talk to yourcompany aboutwhat they offer.Keep in mindduring volatiletimes if you lock10 toz at $1,695and the marketgoes up to$1,750, the first10 toz is lockedat $1,695. You

also are still locked at $1,695 for 10 toz ifthe market drops to $1.590.

Trust is a two-way street and businesshas to be fair. Don’t ever walk awayfrom a hedge over a few dollars. It’s notfair to the company you deal with tohave to eat that expense.

Q: How much gold-filled do I need tosend in to be worthwhile?

A: Gold-filled will typically run 3percent to 4 percent, so you should havea minimum of 100 toz (maybe 7 lbsminimum.)

Q: What is the difference betweenrefining companies?

A: Labels or names don’t change thefact that we are all moving metal andmoney all day long. Refining com-panies, just like pawn shops, jewelers,dentists, lawyers, or whatever, are forthe most part about relationships.

We at Geib aren’t tied to our banks —we have our own money, we’re


PLEASE CUT OUT THIS PAGE AND POST

Have You Seen Us?THESE CHILDREN ARE REPORTED MISSING. YOU CAN HELP IN THE EFFORT TO FINDTHEM. THE NATIONAL CENTER’S TOLL-FREE, 24-HOUR PHONE LINE 1-800-843-5678 ISOPEN FOR THOSE WISHING TO REPORT INFORMATIONION MISSING OR EXPLOITED CHIL-DREN. THE TDD HOTLINE (FOR THE HEARING IMPAIRED) IS 1-800-826-7653 & THE NCMECBUSINESS NUMBER IS (703) 235-3900.

C H I L D R E N™


Jada was last seen on May 26, 2020.

KYREONNA STATONMissing: 5/29/20Age now: 12 yearsSex: FemaleRace: Black Hair: BrownEyes: BrownHeight: 4 ft. 11 in.Weight: 100 lbs.Missing from: Norfolk, Va.

M i s s i n g

Kyreonna was last seen May 29, 2020. She was wearinga pink tank top and black shorts.

TERRANCE GINDHARTMissing: 5/25/20DOB: 11/14/02Age now: 17 yearsSex: MaleRace: BiracialEyes: BrownHeight: 5 ft. 7 in.Weight: 160 lbs.Missing from: Blythewood,SC

M i s s i n g

Terrance may travel to New Jersey. Terrance is Biracial.He is Black and White.

ANASTASIA RAWLSMissing: 5/20/20DOB: 3/17/05Age now: 15 yearsSex: FemaleRace: Black Hair: BlackEyes: BlackHeight: 5 ft. 6 in.Weight: 180 lbs.Missing from: Homestead, Fla.

M i s s i n g

Anastasia was last seen on May 20, 2020.

DATAVIUS ELDERMissing: 5/23/20DOB: 4/18/05Age now: 15 yearsSex: MaleRace: Black Hair: BlackEyes: BrownHeight: 6 ft. 4 in.Weight: 180 lbs.Missing from: Houston, Texas

M i s s i n g

Datavius was last seen May 23, 2020.

C'NYA BLUEMissing: 5/22/20DOB: 9/15/04Age now: 15 yearsSex: FemaleRace: Black Hair: BlackEyes: BrownHeight: 5 ft. 1 in.Weight: 170 lbs.Missing from: Decatur, Ga.

M i s s i n g

C'Nya was last seen on May 22, 2020.

CARDIA SAUNDERSMissing: 5/22/20DOB: 1/20/06Age now: 14 yearsSex: MaleRace: BlackHair: BlackEyes: BrownHeight: 5 ft. 8 in.Weight: 120 lbs.Missing from: Springfield, Ma.

M i s s i n g

Cardia was last seen May 22, 2020.

ELIJAH HARPER

M i s s i n g

Elijah is biracial. He is Black and Hispanic. Elijah may goby the alias date of birth June 24, 2003.

Missing: 5/25/20DOB: 6/25/03Age now: 16 yearsSex: MaleRace: Biracial Hair: BrownEyes: BrownHeight: 6 ft. 1 in.Weight: 206 lbs.Missing from: Hawthorne,

Calif.

JADA MURDAUGHMissing: 5/26/20DOB: 1/25/04Age now: 16 yearsSex: FemaleRace: Black Hair: BlackEyes: BrownHeight: 5 ft. 6 in.Weight: 130 lbs.Missing from: Albany, NY

M i s s i n g

KEVON MILES

M i s s i n g

Missing: 5/28/20Age now: 16 yearsSex: MaleRace: Black Hair: BlackEyes: BrownHeight: 5 ft. 9 in.Weight: 150 lbs.Missing from: Henrico, Va.

Kevon was last seen May 28, 2020. He may still be in thelocal area.

FIRESIDE CHAT

financially strong and that works for usand our clientele.

We don’t need to sell ourselves anyother way than to know how we treatour clients. We work hard, we do thebest business we can and our money isalways good.

Q: Do we need to break cement andstainless out of silver shipments?

A: No. You do not have to empty outsilver, but you do have to account forsome weight loss in the melt if it is notclean upon receipt at your refiner.

For instance, 925 knives with stainlessshould be figured at 13 percent to 15percent, as a conservative estimate.

Q: Are the white dental bridgesplatinum?

A: No. There are no precious metalsin these appliances. Don’t buy them.They falsely will test as platinum, butthey contain no precious metal.

Q: Will acid during the stonedigestion process hurt diamonds andother stones?

A: Diamonds will go through the acidsunharmed, as will most colored stones.

Anything organic such as pearls andopals, will dissolve. If you want them,please take them out before sending for

refining, or they will be washed away inthe process.

Q: Can I put my gold or silver onaccount, and is there a cost?

A: Yes, you can consign your metalsfor sale at a later date. It stays onaccount net to you. You can sell off inpart or in whole at any point in timeand there is no cost.

We at Geib send monthly statementsto our clients who hold metal on account— ask your refiner what it offers.

It’s a great way to keep metal out ofyour shops and safes during these tryingtimes. You can sell it at a moment’snotice or take bullion back against it.

Q: What if I have a small amount ofplatinum to send in?

A: It’s OK. Send this in with yourgold scrap lot, but in a separateenvelope or bag marked platinum. Tellyour rep it’s included.

Q: Can I just throw some silver inwith my gold scrap shipment?

A: Please don’t. If you put 4 toz ofsilver in with your gold, there shouldhypothetically be over 2 toz of pure goldcontained in the materials. Instead ofbeing over $3,000 more in value, youwill have $60 in value and your refinerwill be on the short end and look badwhen they have done nothing wrong.

Keep small amounts of silver baggedand send it separately. You can send itat the same time as your gold, but bagand mark it silver or ag and again, letyour rep know it’s coming in the sameshipment. Communication is alwayskey, from both sides.

Q: What should pawnbrokers alwayskeep in mind?

A: Be mindful of who is selling yougold. Are they from out of town? Arethey in a hurry, or too relaxed? Bewatchful of groups of two or morepeople asking for your attention.

Remember, higher priced itemsshould be shown in private, one itemsat a time, and a driver’s license shouldbe taken during this time. You’re youreyes on your parking lot.

Be cautious. Remember, you don’thave to take every deal, and if it soundstoo good to be true, it usually is. Thereis no African gold coming to Elgin, Ill.,by the tonnage to be refined.

Best wishes always and happyrefining.

Peter B. Spector is the senior national account managerat Geib Refining, based in Warwick, R.I. He can bereached at (401) 595-4516 – cell; (401) 738-8560 –office; (800) 228-GOLD (4653) Ext. 216; or [email protected].


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Sept. 7-9Dixie Conference and Trade ShowPerdido Beach ResortOrange Beach, Ala.Contact: Tim Collier (800) 497-4548 or [email protected]

Nov. 8-11FiSCA MoneytrendsAustin Marriott DowntownAustin, TexasContact: LeeAnn Thompson, (202) 327-9714

* *Calendar

Note: The dates of some conventions have been changed due to the pandemic. It’s possible that others may be changed or those already shifted may have to bedelayed further. These dates are all accurate at presstime, but please check with the convention organizers before making any plans.

continued from page 29

I don’t have an anecdotal intro-duction this issue. Sometimes myoriginal thoughts morph into a full-blown article, as was the case this time.

My humble beginnings to discuss theeffects of COVID-19 on pawnbrokingjust grew and grew, eventuallybecoming the “Pawndemic” articlewhich you will find on page 6.

That, on top of running an essentialbusiness that isn’t closed, not followingthe governor’s and state medicaldirector’s “stay-at-home” order becausemy business and employees areessential (despite the local countyhealth departments serving me ordersto justify my remaining open during thepandemic), while also shutting down apawnshop and moving it, I just haven’thad a lot of free time to write.

And, to top it off, on the positive side,we have been selling everything we havein stock in the way of TVs, video games,computers, tablets, etc., as I assume arethe rest of you. If you sell firearms, youreally know what I mean.

And if that weren’t enough, everyone

seems to have plenty of money, so theyare not pawning but instead redeemingtheir pawns at unprecedented rates. It’slike two tax refund seasons back toback.

Enjoy it while it lasts.

TIP NO. 299As I've mentioned a time or two, I

have consolidated my two pawnshops.Among the "few" items I had to move

are four safes. I'm not doing thatmyself; I know my limits. I hired pro-fessional safe movers.

However, I think I know a thing ortwo about safes, and was trying to beprepared for the day the safe moversarrived. You know, little things likeemptying out the safes and moving thecontents ahead of time.

Did you know that most quality safeshave internal relockers -- spring-loadedreinforcing bolts that can be activated ifmoved in an improper manner? Theseare specifically designed to engage as ifsomeone tried to force entry.

Not wanting to experience tripping a

relocker, with screwdriver in hand, Iremoved the inside panel of the safedoors to have access to the lock and boltwork.

The first one was not a problem.Although I couldn't find a proper sizecotter pin anywhere in the pawnshop, Iused a nut and bolt to pin the relockerin the open (safe) position.

Then on to the next safe. It had tworelockers built in. And to my surprise, Ididn't need to pin them for moving.

Whoever installed this safe and set itup never removed the factory shippingsafety/moving cotter pins from therelockers. They were still in the same“safe” position they were in when it leftthe factory. Or should I say, therelockers were in the locked openposition.

So, after the safes were moved, Iopened them up again and removed thefactory installed shipping safety cotterpins from the one safe and the nut andbolt I installed in the other safe. Two ofmy safes, older models, did not haverelockers. But we don't keep high-dollar


Safe Maintenance

TIPS FOR PAWNBROKERSBy RIC BLUM, CPP


merchandise in them – we use themmainly for records, as they are fireresistant.

Some safes have two types ofrelockers. The first is built inside thecombination lock mechanism, such as aspring-loaded trigger in the lock andmechanism to help thwart drilling,punching or manipulation of the com-bination lock or mechanism.

The second is outside of the combi-nation lock mechanism, connecting theback plate of the lock (often attached toa glass plate with cables) to a spring-loaded firing pin(s) that interlocks withthe locking bolts, cams or gear-drivemechanism if disturbed.

Those were the relockers I describedabove.

So, has everyone checked their safesfor this issue? Like I say, many of thetips I offer come from personal expe-rience and this is one I’m not proud of.At least I caught it in time before anybreaching incident.

TIP NO. 300

Since we’re on the subject of safes, I’mgoing to tell you about my next step –servicing my safes.

It’s been a number of years since Ihave had any of my safes serviced,probably like most of you – it’s onlydone when there is an issue.

Since I have just had four safesmoved, I’m going to call my safe tech-nician and schedule service for all of my(regularly used) safes. I have a lot ofthem. Safes for pawns, safes for records,safes for inventory, safes for backstock,safes for the jewelry removed from theshowcases at night, and a few more.

Combination locks have been aroundfor more than 100 years and are still theNo. 1 method of securing a safe door,although electronic and biometric locksare becoming more and more popular.

Combination locks are no differentfrom any other ordinary lock in thatthey have moving parts and should beserviced periodically. What many safe

owners don’t consider is that their safecan potentially get “locked up” or youmay experience a “lockout” if thisservice is not done regularly.

Safe combination locks usually havethree wheels in the wheel pack, eachwith a small cutout on the edge calledthe gate. When the proper combinationis dialed, the three gates link up and thefence drops in, allowing the hardwareto withdraw the locking bolts. Just likeany mechanical device, they canbecome dirty or worn with use.

It is recommended that safe combi-nation locks be serviced every 2 or 3years. If you don't dial open your safevery often, you should still have yourlock serviced, but it does not need to bedone as frequently as with heavy use.

If the safe is “locked up” and the com-bination lock fails because it is dirty andworn, it will require the safe to bedrilled open and repaired. During thisprocess, it is possible that the lock may

TIPS FOR PAWNBROKERS


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BUYER’S GUIDEAPPRAISAL/CERTIFICATION:DIAMONDS, COLOREDGEMS & JEWELRYEGL USA580 Fifth Ave Ste 2700New York, NY 10036-4701(212) 730-7380; Fax (212) 730-7453www.eglusa.com

EGL USA550 S Hill St Ste 840Los Angeles, CA 90013-2409(213) 534-2223; Fax (213) 534-2224www.eglusa.com

DIAMONDSBLUESTONE TRADING COMPANY INC5244 Mayfield Rd 2nd FloorCleveland, OH 44124-2473(440) 442-7280: Fax (440) 442-0026www.bluestone-trading.com

DIAMOND AUCTIONSRAPAPORT1212 Avenue of the Americas Ste 801New York, NY 10036-1614(212) 354-9800; Fax (212) 840-0243www.rapaportauctions.com

DIAMOND BUYERSABC JEWELRY INC42380 Silverwood DrSterling Heights, MI 48314-2940www.abcdiamondbuyer.com

BLUESTONE TRADING COMPANY INC5244 Mayfield Rd 2nd FloorCleveland, OH 44124-2473(440) 442-7280: Fax (440) 442-0026www.bluestone-trading.com

JAY PAYS5 S Wabash Ave Ste 319Chicago, IL 60603-3099(877) 955-7297; Fax (888) 316-5616www.jaypays.com

PALAK DIAM INC550 Hill St Ste 880Los Angeles, CA 90013-2428(213) 268-8485; Fax (213) 622-4038www.palakdiamond.com

WHITE PINE TRADING LLC535 5th Ave 11th FloorNew York, NY 10017-3696(646) 758-0292; Fax (212) 869-3032www.whitepinesales.com

DIAMOND AND JEWELRYBUYERSBLUESTONE TRADING COMPANY INC5244 Mayfield Rd 2nd FloorCleveland, OH 44124-2473(440) 442-7280: Fax (440) 442-0026www.bluestone-trading.com

MIDSOUTH PM114 W Magnolia St Ste 411Bellingham, WA 98225-4394(800) 895-1874; Fax (360) 671-7936www.midsouthpm.com

PALAK DIAM INC550 Hill St Ste 880Los Angeles, CA 90013-2428(213) 268-8485; Fax (213) 622-4038www.palakdiamond.com

PAUL REISER & ASSOCIATESPO Box 1595Green Bay, WI 54305-1595(877) 475-4367; Fax 920-432-5797www.paulreiserandassociates.com

SIMPLEX DIAM50 W 47th St, Ste 2011New York, NY 10036(212) 883-0888; Fax (212) 883-9532www.simplexdiam.com

WHITE PINE TRADING LLC535 5th Ave 11th FloorNew York, NY 10017-3696(646) 758-0292; Fax (212) 869-3032www.whitepinediamonds.com

EDUCATION/HOME STUDYINTERNATIONAL GEMOLOGICAL INSTITUTE (IGI)551 Fifth Ave Floor 7New York, NY 10176-0001(212) 753-7100x3357; Fax (212) 644-8378www.igiworldwide.com

FINANCE/FINANCINGPAWNBROKER FINANCING2701 W. 84th Ave.Westminster, CO 80031(303) 373-1300; Fax (303) 373-4424www.pawnbrokerfinancing.com

GEM & JEWELRYAPPRAISALS/CERTIFICATIONINTERNATIONAL GEMOLOGICAL INSTITUTE (IGI)551 Fifth Ave Floor 7New York, NY 10176-0001(212) 753-7100; Fax (212) 644-8378www.igionline.com

INTERNATIONAL GEMOLOGICAL INSTITUTE (IGI)550 S Hill StLos Angeles, CA 90013-2401(213) 955-0008; Fax (213) 955-8060www.igiworldwide.com

GEM LAB APPRAISERPROFESSIONAL GEM SCIENCES LABORATORY- PGSL5 S Wabash Ave Ste 315Chicago, IL 60603-3517(312) 920-1541; Fax (312) 920-1547www.pgslaboratory.com

FIREARM VALUATIONSERVICESBLUE BOOK PUBLICATIONS INC8009 34th Ave S Ste 250Minneapolis, MN 55425-1676(800) 877-4867www.bluebookofgunvalues.com

INSURANCEALL RISKS LTD10150 York Rd., 5th FloorHunt Valley, MD 21030(410) 828-5810 ext. 3568www.allrisks.com

JEWELERS MUTUAL INSURANCE GROUP24 Jewelers Park DriveNeenah, WI 54956800-336-5642, ext. 2118JewelersMutual.com/Pawn;[email protected]

MARSHALL & STERLING110 Main StPoughkeepsie, NY 12601-3080(800) 333-3766x1; Fax (845) 454-0880www.marshallsterling.com/pawnbrokers

PAWNINSURANCE.COM5225 N Central Ave, Ste 110Phoenix, AZ 85012-1495(800) 545-5624; Fax (602) 265-9763www.pawninsurance.com

WEXLER INSURANCE AGENCY INC1120 Ponce De Leon BlvdCoral Gables, FL 33134-3321(800) 432-1853; Fax (305) 448-8189www.wexlerinsurance.com

JEWELERS SUPPLIESINTERNATIONAL GEMOLOGICAL INSTITUTE (IGI)551 Fifth Ave Floor 7New York, NY 10176-0001(212) 753-7100x3357; Fax (212) 644-8378www.igionline.com

STULLER INC302 Rue Louis XIVLafayette, LA 70508-5735(800) 877-7777; Fax (800) 444-4741www.stuller.com

LASER INSCRIPTIONSERVICESINTERNATIONAL GEMOLOGICAL INSTITUTE (IGI)551 Fifth Ave Floor 7New York, NY 10176-0001(212) 753-7100; Fax (212) 644-8378www.igiworldwide.com

LOSS PREVENTION,SAFESHOLLON SAFE COMPANY227 44th St.Corpus Christi, TX 78405(888) 455-2337www.hollonsafe.com

ONLINE EDUCATIONGIA5345 Armada DrCarlsbad, CA 92008-4606(800) 421-7250x4001; Fax (760) 603-4003GIA.edu

PAWNBROKING SOFTWARE SOLUTIONSBRAVO PAWN SYSTEMS1865 Village Center CircleLas Vegas, NV 89134-6369(888) 407-6287; Fax (702) 749-9119www.bravopawnsystems.com

HI-TECH PAWN SOFTWARE1365-A Maley Hollow RdDayton, TN 37321(423) 285-5750; Fax (423) 285-5754Hitechpawn.com

PAWNDEX 3000 West Memorial Rd., Suite 123-628Oklahoma City, OK 73120(405) 755-6710; Fax (405) 755-3874www.pawndex.com

PAWN-SAFE351 Linden Ln #160Fort Collins, CO 80524-4416(800) 671-3102www.pawn-safe.com

REFINERS/PRECIOUSMETALSGEIB REFINING CORP399 Kilvert StWarwick, RI 02886-1344(800) 228-GOLD; (401) 732-2841www.geibrefining.com

HI-TECH PRECIOUS METALS & REFINERY13620 Gamma RdDallas, TX 75244-4406(972) 239-0597; Fax (972) 239-0598www.hitechpmr.com

MANHATTAN GOLD & SILVER45 W 47th StNew York, NY 10036-2837(212) 398-1454; Fax (212) 391-7853www.mgsrefining.com

MID-STATES RECYCLING & REFINING1841 Busse HwyDes Plaines, IL 60016-6726(847) 298-0010; Fax (847) 298-3910www.midstatesrecycling.com

UNITED PRECIOUS METAL REFINING INC2781 Townline RdAlden, NY 14004-9676(716) 683-8334; Fax (716) 683-5433www.unitedpmr.com

WILLIAMS GOLD & SILVER3638 E Sunset Rd Ste 100Las Vegas, NV 89120-7226(702) 485-1414; (702) 485-1973www.williamsgoldandsilver.com

REFINING & STONEREMOVALPEASE & CURREN REFINERS75 Pennsylvania AveWarwick, RI 02888-3028(401) 739-6350 or (800) 343-0906www.peaseandcurren.com

UNITED PRECIOUS METAL REFINING INC2781 Townline RdAlden, NY 14004-9676(716) 683-8334; Fax (716) 683-5433www.unitedpmr.com

To advertise your business/servicein the Buyer’s Guide,

call (772) 232-8888 ext 101 or email

[email protected]


SAFESWORLDWIDE SAFE & VAULT INC3660 NW 115th AveMiami, FL 33178-1863(800) 932-2278; Fax (305) 477-9744www.worldwidesafe.com

SCHOOLSINTERNATIONAL GEMOLOGICAL INSTITUTE (IGI)551 Fifth Ave Floor 7New York, NY 10176-0001(212) 753-7100x3357; Fax (212) 644-8378www.igiworldwide.com

STEWART’S INTERNATIONAL SCHOOL FORJEWELERS651 W Indiantown RdJupiter, FL 33458-7557(800) 843-3409 www.stewartsintlschool.com

SHIPPING SOLUTIONSJM SHIPPING SOLUTION855-474-4756JewelersMutual.com/[email protected]

TRAININGIAS TrainingP.O. Box 27803Denver, CO 80227(800) 248-7703www.iastraining.com

UNLOAD DEBIT CARDSALTERNATIVE FINANCIAL SOLUTIONS351 Linden Ln #160Fort Collins, CO 80524-4416(800) 671-3102www.alt-banking.com

WATCH CERTIFICATION& COUNTERFEIT IDENTIFICATIONWATCH CERTIFICATION SERVICES OF AMERICA6843 Sparrow Hawk DrWest Palm Beach, FL 33412-3053(888) 937-9272; Fax (480) 287-8703www.watchcsa.com

BUYER’S GUIDE

had occurred is a question of law for thecourt to determine.

The pawnshop argued that Blanchefailed to state a claim because noconsumer transaction occurred. R.C.Section 1345.01 defines consumertransaction as follows:

(A) “Consumer transaction” means asale, lease, assignment, award bychance, or other transfer of an item ofgoods, a service, a franchise, or anintangible, to an individual forpurposes that are primarily personal,family, or household, or solicitation tosupply any of these things. “Consumertransaction” does not include trans-actions between persons, defined in theRevised Code sections 4905.03,covering public utilities and 5725.01covering financial institutions andinsurance companies, and their cus-tomers, except for transactionsinvolving a loan made pursuant tosections 1321.35 to 1321.48 of theRevised Code covering short termlenders and transactions in connectionwith residential mortgages betweenloan officers, mortgage brokers, ornonbank mortgage lenders and theircustomers; transactions involving ahome construction service contract asdefined in the Revised Code; trans-actions between certified publicaccountants or public accountants andtheir clients; transactions betweenattorneys, physicians, or dentists andtheir clients or patients; and trans-actions between veterinarians and theirpatients that pertain to medicaltreatment but not ancillary services.

In determining the existence of a

consumer transaction, the DistrictCourt noted that a court shouldexamine the totality of the circum-stances as evidenced by the objectivemanifestations of the parties at the timethe parties entered into the agreement.The OCSPA, said the court, is remedialin nature and, thus, should be liberallyconstrued in favor of consumers.

PAWNSHOP’S ARGUMENTThe pawnshop argued that Blanche

did not (and could not) allege any sale,lease, award or other transfer tookplace. Thus, the pawnshop argued thatBlanche failed to plead that thepawnshop entered into a consumertransaction with her. Rather, thepawnshop clerk inspected the pendantand declined to make a pawn loan.

On the other hand, Blanche arguedthe pawnshop’s reading of Section 1345was too narrow. She argued that atransfer of services—the pawnshop’sinspection of the pendant—occurredbetween her and the pawnshop, qual-ifying the parties’ interaction as aconsumer transaction.

Of importance, in this case, noted theDistrict Court, is that it is not necessarythat a sale actually take place. Rather,solicitation of a consumer transaction issufficient. In the 1989 case ofMcDonald v. Bedford Datsun, the courtheld that despite no sale being con-summated, negotiation of a salesagreement amounted to solicitation,making the OCSPA applicable.

In this case, noted the District Court,Blanche did not specifically allege thatthe pawnshop solicited a consumertransaction. Rather, she alleged that she

took the pendant to the pawnshop’sstore because she was familiar with thestore and its operations, because shehad previously pawned TVs and DVDsthere.

After arriving at the store, thepawnshop clerk removed the pendantfrom Blanche’s line of sight andinspected it with her permission. Theclerk then returned the pendant toBlanche, advising her that it would notmake a loan on her piece of jewelry.

Viewing the allegations of the com-plaint, said the District Court, in thelight most favorable to Blanche,accepting her allegations as true, anddrawing all reasonable inferences infavor of Blanche, the court found thatthese allegations were sufficient to statea plausible claim against the pawnshopfor a violation of the OCSPA.

Although not a completed trans-action, the inspection of the pendantcould be considered part of the nego-tiation process for a transaction andthus, a solicitation. Accordingly, at thisstage in the litigation, said the court,the pawnshop’s argument was unper-suasive.

The District Court on Sept. 16, 2016ruled that, consistent with the foregoing,the pawnshop’s Motion for PartialJudgment on the Pleadings was grantedin part and denied in part. Count Fourthat claimed violation of the OhioDeceptive Trade Practices Act was dis-missed. All other claims remained.

Readers who would like a free copy of this case sentelectronically should send an E-mail to [email protected] “Pendant” in the subject line.

DEFINITION, from page 27

APPEALS


Some criminals seem to beunable to figure out that whenthey pawn a stolen item they aredealing with a trade that isheavily regulated, closelywatched, and required tomaintain a clear paper trail thatoften leads right back to thethief or an accomplice.

Recently, after pawning astolen mountain bike, whichwas quickly identified by thebike’s owner, the thief was clas-sified as a “worst offender” andsentenced to five years inprison.

A man named William visitedFairbanks, Alaska, with his wifeto ride his mountain bike onbiking trails. William had pur-chased a mountain bike, whichoriginally retailed for $5,000,on Craigslist for $1,700, and hehad affixed a small sticker to itsframe.

William locked the bicycle toa picnic table at a campsite while heand his wife went to a nearbyrestaurant to eat lunch. They returnedto find the bicycle was gone.

William began telephoning localpawnshops. The second one he calledhad just taken in a bicycle likeWilliam’s; further, affixed to the framewas the small sticker that William hadsecreted there. According to thepawnshop’s records, the bicycle waspawned by a man whose first name was

Frank, who provided an address he hadnot lived at for many years.

PAWNER CHARGEDFrank was charged with theft under

two theories, stealing William’s bicycleor, in the alternative, recklesslyreceiving it as stolen property .

Frank testified in his own defense. Heclaimed that while he was staying at thesame campground as William, anotherperson offered to sell the bicycle to

Frank for $50. He agreed, andthen immediately pawned it for$150. Frank said that when helater returned to the pawnshop,he learned that the bicycle hadbeen reported stolen.

The Superior Court Judgeinstructed the jury on two legaltheories of theft — taking theproperty of another with intentto deprive, and recklesslyreceiving stolen property. Afterthe jury trial, Frank was con-victed of second degree theft forstealing a bicycle valued at$500 or more.

Frank appealed to the Court ofAppeals of Alaska, arguing thatthe evidence was insufficient tosupport his conviction. He alsoclaimed that the prosecutor mis-stated the law during his closingargument. Lastly, Frank chal-lenged his sentence as excessive,arguing that the judge waswrong in ruling that Frank was a“worst offender” and in rejecting

his two proposed statutory mitigators.The Appeals Court noted that

evidence is legally sufficient to supporta criminal conviction if the evidenceand the reasonable inferences to bedrawn from it, when viewed in the lightmost favorable to upholding the jury’sverdict, are sufficient to convince fair-minded jurors that the governmentproved its allegations beyond a rea-sonable doubt.

Thief Tagged ‘Worst Offender’After Pawning Stolen ItemA mistake by a prosecutor was ruled unimportant. By Richard Weatherington


become damaged, which means it willneed to be replaced, the cost of whichwould be substantially higher than aregular servicing plan.

Periodic service of combination lockscan usually prevent the lockup of yoursafe. The safe technician will disas-semble the wheel pack, clean thewheels and other parts, replace anyworn parts, and lubricate the lock,which results in a smoother, morereliable combination lock.

WARNING SIGNS OF LOCK FAILURE• Operating the dial is stiff or tight• You hear clicks or other unusual

noises when dialing the lock• The lock wants to spring back as

you dial

• The lock is difficult to open on thefirst try

• The lock assembly appears loose,crooked or wobbly

• The combination changes over time• The door(s) feel stiff or are difficult

to open or closeOf course, if you notice any of the

warning signs above, you should havethe safe looked at by a professional safetechnician immediately to prevent alockout.

I have experienced two safe lockoutsthat I remember. They are usually firstthing in the morning and not a greatway to start your day.

Ric Blum, Certified Pawn Professional, is a vice presi-dent of Ohio Loan Co. in Dayton, Ohio. He has served aspresident of the Ohio Pawnbrokers Association, secre-tary/treasurer of the National Pawnbrokers Association,and as a member of the board of directors and the boardof governors of the National Pawnbrokers Association,Ric was named the National Pawnbrokers AssociationPawnbroker of the Year in 2014, named the OhioPawnbrokers Association 2015 Ohio Pawnbroker of theYear and received a Lifetime Achievement Award fromthe Midwest Pawnbrokers Association in 2017. Pleasefeel free to e-mail your comments or tips that you wouldlike to see included in this column to [email protected] ormail them to Ric Blum, Ohio Loan Co., 3028 Salem Ave.,Dayton, OH 45406.


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Many of the tips I offer will be of more benefit to newer pawnbrokers, but some more experienced pawnbrokers mayfind something new and interesting, also. If you are new tothis column, I share three or four tips per issue that you canuse in your pawnshops to help sales, security, merchandis-ing, or make life a little easier. Since we all run our pawn-shops differently, I try to cover a broad range of subject areasto appeal to a wide scope of interests. Many of these tipscome from personal experience (that translates into trial anderror). Others come from fellow pawnbrokers kind enough toshare something that has worked well for them. You mayeven want to contribute a tip or two for future columns.

TIPS FOR PAWNBROKERS, from page 33

The Appeals Court said it had inde-pendently reviewed the record in thiscase and concluded that the evidencepresented at Frank’s trial was legallysufficient to support the jury’s verdictunder either theory of theft presented.

Frank’s second claim on appeal wasthat the prosecutor committed plainerror during his closing argument.

Frank argued that the prosecutor sug-gested that the culpable mental state ofnegligence necessarily includes theculpable mental state of recklessness,rather than the converse. Frank arguedthat this erroneous characterization ofthe law manifestly confused the juryand prejudiced him.

Frank’s attorney did not object to theprosecutor’s remarks, so he must showplain error. To show plain error, Frankmust establish, in part, that the pros-ecutor’s argument was obviouslyincorrect and that it affected his sub-stantial rights. That is, he must demon-strate that the prosecutor’s argument,taken as a whole, was so egregious as to“undermine the fundamental fairness ofthe trial.”

CONFUSION IN CLOSINGSDuring his closing argument, Frank’s

defense attorney argued that Frank hadtestified truthfully about how heobtained the bicycle, and that he did notbehave recklessly when he purchased thebicycle. The defense attorney contrastednegligence with recklessness and pointedout to the jury that merely negligentconduct was insufficient to convict Frankof theft by receiving stolen property.

During his rebuttal argument, theprosecutor displayed momentary con-fusion about the relationship betweennegligence and recklessness. The pros-ecutor said that Frank was negligent,and included with that, he was reckless.

But the prosecutor then correctlyexplained to the jury that there were dif-ferent levels of culpability. The top levelis intentionally. Below intentionally isrecklessly, and the civil level is negli-gently. The civil level is not applicable; it

is included in recklessness. The prosecutor later stated properly

that Frank was guilty if he intentionallytook William’s bicycle or if he pur-chased it while recklessly disregardingthat it was stolen.

The Appeals Court concluded thatthere was no reasonable probabilitythat the prosecutor’s brief, inaccuratecharacterization of these culpablemental states affected the jury’s verdict.Accordingly, the court found that therewas no plain error.

PRESUMPTIVE SENTENCEBecause Frank had more than two

prior felony convictions, he was subjectto a presumptive sentencing range of 3to 5 years. The judge sentenced him tothe maximum sentence of 5 years toserve, a sentence that required thejudge to find that Frank was a “worstoffender.”

Frank now argued that the judge waswrong, both in finding him to be a “worstoffender” and in rejecting Frank’s twoproposed statutory mitigators. Frankalso challenged his sentence as excessiveand asserted that he should only be sen-tenced to a maximum of 3 years.

The Appeals Court noted that Frank,who was 39 years old at the time of sen-tencing, had acquired 24 convictions inthe preceding 21 years, nine of themfelonies. His record included con-victions for residential burglaries,thefts, and forgeries, as well as pro-bation violations. Frank was on misde-meanor probation when he stole thebike and pawned it. The presentencereport characterized his prospects forrehabilitation as “dismal, at best.”

Moreover, before the calendar call forthe present case, Frank absconded fromcustody, stole a vehicle, and engaged thepolice in a high-speed chase. The judgefound that this recent conduct, viewedtogether with Frank’s criminal history,suggested that the “day he is out ofcustody is the likely day of his nextoffense.”

The Appeals Court said that based onFrank’s extensive record of criminality

and his commission of new crimesbefore the trial, the judge’s finding thathe was a “worst offender” was notclearly erroneous. Thus, the judge waswithin his discretion to sentence him tothe maximum sentence of 5 years.

Frank also argued that the judge waswrong in rejecting two mitigators: thathis crime was among the least serious ofsecond degree thefts and that the harmhe caused was consistently minor andtherefore inconsistent with a sub-stantial period of incarceration.

The Appeals Court’s review of ajudge’s ruling on the applicability of astatutory mitigator or aggravator is atwo step process. The court reviews thejudge’s factual findings for clear error.But whether those facts justifyacceptance or rejection of a mitigator oran aggravator is a legal conclusion thatthe court reviews with a fresh view.

Frank argued that the least seriousmitigator applied to his crime becausehis theft was opportunistic rather thanpremeditated. The judge rejected this,noting that the bicycle’s fair marketvalue exceeded $3,000. The judgeadopted the prosecutor’s argument thatthe brevity of the period betweenWilliam’s discovery of the theft and thebicycle’s recovery didn’t render the theftless serious, because William’s recoveryof his bike was fortuitous and due solelyto his own quick action.

The judge found that the harm in thiscase was not minor and that Frank’sprior offenses did not cause minorharm either.

The Appeals Court said it inde-pendently reviewed the record and con-cluded that the judge’s factual findingswere not clearly erroneous. Thus, thejudge was not wrong in rejectingFrank’s proposed least serious and con-sistently minor harm mitigators.

Therefore, on Aug. 16, 2017, theAppeals Court in an unpublishedopinion affirmed the judgment of theSuperior Court.

Readers who would like a free copy of this case sentelectronically should send an e-mail to [email protected] “Worst Offender” in the subject line.


APPEALS

‘WORST OFFENDER,’ from page 36

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