ACCS is one of several defendants named. The prosecutor's office is not a party to the lawsuit.

Dvorak and ACCS teamed up in a three-year contract signed in March 2004 to help merchants recoup thousands of dollars in annual losses from bad checks and deter future incidents.

Monthly warnings of prosecution, jail, fine

On July 22, 2004, Maria Hamilton received a document titled "Official Notice" on the letterhead of the St. Joseph County prosecuting attorney concerning a check that had been returned for insufficient funds.

After that, she received the following mail concerning her participation in a supposedly optional bad check restitution program, which she says she never entered.

Sept. 7, 2004: "Notice of Failure to Comply" ... saying her failure may result in the filing of criminal charges.

Oct. 4, 2004: "Notice of Late Payment" ... saying if payment and a $10 late fee are not received within 72 hours, she will be considered in breach of her agreement.

Nov. 12, 2004: "Case Information" ... saying she must pay $230.28 and complete a class for the prosecutor to discharge a crime report.

Dec. 13, 2004: "Notice of Late Payment" ... saying payment plus a $10 late fee must be paid within 72 hours or she will be considered in breach of her agreement.

Dec. 21, 2004: "Notice of Payment Agreement Termination" ... saying, "Your failure to keep the payment arrangements constitutes a breach of your agreement with the prosecuting attorney which may result in the formal filing of criminal charges," and adding, "Should criminal charges be filed, you may be punished with a jail sentence and/or fines OVER AND ABOVE the amount of restitution."

Jan. 4, 2005: "Notice of Failure to Comply" ... saying her failure to respond may result in the filing of criminal charges.

Jan. 19, 2005: "Official Notice" ... saying failure to contact the office by Feb. 2 may result in criminal prosecution.

Feb. 3, 2005: "Warning" ... saying to contact the office immediately to avoid potential arrest and prosecution.

March 21, 2005: "Important Notice" ... saying to contact the office about a bad check crime report on file.

ACCS representatives did not return requests for comment, but Dvorak released a statement saying the notices and the wording they contain have been approved by the prosecutor's office.

People are referred to the prosecutor's office for possible charges, Dvorak explained, only after the retailers have made attempts to collect payment on the bad checks.

First-time offenders can enter the diversion program as an alternative to prosecution. They gain personal finance skills, and the victimized businesses receive restitution for unpaid checks.

Check writers are not forced to enter the program, he stated. They can choose instead to defend their case in a criminal court.

"The prosecutor's office," he added, "has received a uniformly positive reaction from retailers in St. Joseph County, who are pleased with the rate of restitution and the lack of recidivism by offenders who enter the program."

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