The difficulty with these kinds of cases, coming from the legal field is two-fold:
1. She likely in time will be criminally prosecuted, if she isn't already and I wasn't sure what the status of that is. While she may end up doing some time (more likely probation), the courts don't often have a lot of success getting victim compensation or restitution. Even if awarded, it's very hard to collect unless she is not judgment-proof (i.e., has more debts than assets - which is probably likely).
2. Even if you sued her civilly, there are several hurdles: (a) you would have to have proof not only that you gave her the bag, but that you weren't paid for it. This person could literally lie and say - yes - I sent her a letter saying I would pay her by so and so, and I did - she came in - in person - and I gave her cash - probably wouldn't be successful, but it's plausible somewhat because consignors are often paid on a cash basis - "on the spot" or in person; (b) that you have something more than an oral contract regarding the same (oral contracts can be difficult to enforce in some states); and (c) that you preferably have a written contract and what it's terms were (and that they were indeed legally enforceable in your state - i.e., a contract that was legally viable between the two of you under your state's statutes).
While it is much more likely you could be awarded a judgment under a civil rather than criminal venue, the difficulty is enforcing the judgment. That's always the difficulty. It's relatively easy to get a judgment. Enforcing it and actually seeing any money is a huge hurdle and very difficult to do. You likely will need an attorney to help you with that aspect of things (depending on the enforcement of judgment statutes in the state she lives in). Also, most states in the U.S. have defendant-friendly statutes in terms of exemptions from judgments. What that means is that when a judgment is taken against someone, the person has a right to exempt herself civilly from execution on much of her tangible personal property (car, bank accounts, etc.), depending on her assets and debts, income, and what her personal financial equity is. There is a lot of paperwork involved, and it's time consuming and can be quite expensive when you add in legal fees (and there are legal quagmires involved if papers are filled out incorrectly, and timing is not followed in terms of which legal papers follow the previous and the like. I'm afraid, start to finish, in a civil venue, you may be looking at more in fees than you would ever see in return, and possibly more than the items were worth in the first place.
If these were indeed Hermes bags and very high ticket items, then it could fall into the realm of a superior court case. So it's not the lower cost filing fee that you would have in small claims (for instance if the value total is over $5,000.00). Superior court filing fees typically are $250.00 just to file the lawsuit. Hopefully, this would still fall in small claims. However, small claims can be magistrates or judges that are less likely to throw the book at someone because they are so jaded and tired in their lives dealing constantly with riff raff. Anyway, then you can have other associated costs related to filing on the execution of the judgment. And it's not a one-time thing. You may be able to garner $50.00 or $100.00 each time, but then when something opens up again where you think there is money available again - you need to go through the execution process again - and so on, and so on.
Typically, for most attorneys, they won't even bother handling judgments and enforcements unless the value is well over $10,000, and they don't ever take these cases on a contingency fee basis because there literally is never any guarantee that their client (or they as attorneys) will ever see any money as a result of the time-consuming hard work. An attorney in Beverly Hills? I shudder. You're probably looking at an hourly rate of $250 (at the very bottom) to up to $750 or more. Add that to 5-8 (or more hours) - it adds up fast. Add in court costs and fees - you're going up exponentially. I have no doubt an attorney would run well more than the $3,500 you are talking about if you consider start to finish and court costs and fees. Most attorneys would probably ask for a $2,500 retainer just to start the process. And that's in North Carolina. It's very likely retainer rates would be higher in Beverly Hills. But it's definitely not a contingency fee case. Attorneys only do those in cases where there is more than a 90% probably of being paid. There just isn't in these cases, so you'd be looking at a retainer and hourly rates.
So, for most people, unless it's a promissory note worth much much more, it's not feasible financially to use an attorney. Then you're going pro se which has it's own set of issues and problems and the rate of success - a return on your money - is much lower, and the headaches and frustrations are much higher.
It's heartbreaking really. But this is why scammers do this. They know well the ins and outs of the system, and they know how to work it. They typically realize that any criminal retribution will likely be a slap on the wrist, and they manage often to work the district attorneys and criminal system to the extent that this is looked at like a business failing, rather than a criminal offense. Unfortunately, prior bad acts are almost never allowed in a new criminal trial, so if they do get arrested, and get a good attorney, prior similar offenses are not likely to be allowed as evidence before a jury, and they can spin this to their hearts content that it was a business going down the tube as a result of the poor economy and "woe is me." If jurors don't hear about them doing it before (and it actually can be a liability if they actually were arrested and convicted before because that definitely can't be brought into evidence - it's almost better if there are other acts that can be coupled as companion cases) - but anyway if the jurors don't hear about a history, and they aren't likely to, they may give the person the benefit of the doubt and either let them off, or slap them on the wrist. It simply may be looked at as if it's a business that unfortunately went down the tubes.
These scammers also often don't care if you get a judgment against them. They may already have many. Some have hundreds. They may be "judgment-proof" in terms of their own personal financial situation. They may be well aware how difficult, expensive, and time consuming it is to collect on judgments, how you have to keep going back again and again, and that the vast majority of people who do manage to get a judgment against someone end up giving up after a year or so of trying to collect on it. And if she files bankruptcy, and the bankruptcy trustee allows the "assets/deficits" of the business to be included in the voluntary petition, you are SOL. Most of these types of people manage somehow to file Chapter 7, rather than Chapter 11 bankruptcy as well - which leaves no money to be paid out. All debts are literally discharged. It's only in Chapter 11 bankruptcy that the person will pay a trustee monthly for a number of years and then those funds are dolled out to any creditors, and even then it's typically only secured creditors (i.e., with full legal proof of claim, written contracts, and the like). Other creditors - if you manage to even get that standing (which might be unlikely in a consignment situation due to proof and evidentiary issues) would likely be unsecured creditors (paid last or not at all). Creditors in bankruptcy matters usually end up with pennies on the dollar, if they end up with anything.
So, either way - it's lose lose for the poor victim. Even if criminal prosecution does happen (i.e. if the DA decides it's worth his time, and has the time to take the case on), and is successful, and even if the jury allows something for restitution, if the funds are gone or the person's net worth is low enough, a judge isn't likely to take food off the table so to speak. Courts often look at "justice" as simply being that the person was punished criminally, rather than realizing that the victim hasn't been made "whole." If a civil judgment is pursued and is successful, enforcing it is really really difficult, expensive and time-consuming.
I'm so sorry OP - this is just awful. I think there is a special, very hot place, where these people should, and will, spend their eternity. I'm so sorry this happened to you!
UPDATED: I just read all the info about the Ponzi Scheme, etc. HOW UTTERLY HORRIBLE!!!!!!!!!
