BISMARCK — North Dakota Attorney General Drew Wrigley announced Thursday, Jan. 26, that his office reached a tentative settlement with Glasser Images, a defunct Bismarck photography business that state officials had accused of consumer fraud.
As part of the tentative settlement, Glasser Images admitted it engaged in acts or practices constituting consumer fraud, according to a statement from Wrigley's office.
The settlement, which Wrigley has filed with the Burleigh County District Court for final approval, would ban the company, its owner Jack Glasser, and a former employee of the business, Jace Schacher, from owning or operating a photography business in the state for at least 15 years and requires payment of $807,188 in restitution to affected consumers and subcontractors, Wrigley's office said.
The settlement would also impose a $30,000 civil penalty, Wrigley's office said.
Tim O’Keeffe, an attorney representing Glasser Images, said Thursday that for Jack Glasser, the worst day in his more than 16 years in business was having to close the doors of his photo studio.
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"As a young man, Jack Glasser started a business in Bismarck, employed many good people, served thousands of customers, and was successful for more than a decade and a half," O'Keefe said. "Since closing the doors, Jack and Jace have made extraordinary efforts to distribute the photography and videos to their valued clients. They sincerely hope this settlement agreement brings much needed closure."
As part of the proposed settlement, Glasser and Schacher, each of whom filed bankruptcy last August, agreed that the restitution and civil penalty would not be responsibilities that could be eliminated as part of their respective bankruptcy cases, according to Wrigley's office.
The consumer protection division of the attorney general's office opened an investigation in October of 2021 into Glasser Images and its sudden closure.
Following a six-month investigation, the consumer protection division filed its civil action , alleging that Glasser Images, Glasser and Schacher violated North Dakota’s consumer protection laws by soliciting advance payments from consumers for wedding photography or videography, and then failing to provide the services because of financial problems that were not properly disclosed to consumers, Wrigley said in the statement.
Wrigley added that the investigation revealed that Glasser and Schacher wrongfully paid for personal expenditures using Glasser Images’ funds, including advance payments that were entrusted to the business by consumers seeking photo services.
Glasser Images’ records reflected that its financial problems predated the COVID-19 pandemic and were exacerbated by Glasser and Schacher’s use of Glasser Images’ funds for personal expenditures, according to Wrigley.
"These defendants promised important services to wedding couples who paid for photography and video services on one of the most important days of their lives and then failed to do so, causing almost incalculable distress,” Wrigley said.
Wrigley noted that the attorney general's office received 540 complaints for things like undelivered photographs and videos as well as cases involving advance payments without any photography services being provided.
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He said the matter required an extensive effort by his office to reconcile each consumer complaint to determine who ultimately received delivery of products and who was still owed restitution for services not provided.
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