What I can tell is James was/is playing many sides against each other.
In hindsight, seems James is the one with a penchant for scamming/bouncing checks. Perhaps he is the one that has been selling.
IMO, it would have saved a lot of anguish had Jeff done a background check on James, but we are all human - I know Jeff has been trying to do the right thing here.
However, Jeff did have the wherewithal to write up the deal in a way that if obligations weren't met, NHSH was protected.
The saga continues...