Attorney General's News Release

Jan. 15, 1999

Ringleader of vending machine scam sentenced to 10 years

Liberty, MO — A Kansas City North man was sentenced today in Clay County Circuit Court to 10 years in prison for his part in defrauding investors with a business opportunity involving selling non-prescription medication from vending machines.

Harold Eugene Estes, 53, pleaded guilty in October to 10 charges of unlawful merchandising practices in connection with the scheme. The charges were brought by a Clay County grand jury at the request of Attorney General Jay Nixon and were prosecuted by the Attorney General's Office.

"This is an appropriate sentence for someone who blatantly lied to the people who paid thousands of dollars to him to set up their own vending machine businesses," Nixon said. "Using a pen and a phony spreadsheet to hold up someone is as criminal as doing it with the barrel of a gun."

Estes was the owner of a business known variously as Contemporary Marketing Services and KC Dynamic Concepts Inc. Nixon had charged that Estes made several promises to his victims about the business and about the potential for profit that Estes knew were false.

Four salesmen who worked for the business also have pleaded guilty to or have been found guilty of criminal charges in connection with the scheme. Estes also has paid $20,000 as part of the sentencing; that money will be used for restitution to his victims, most of whom reside outside Missouri. Nixon has a civil lawsuit pending against Estes to obtain additional victim restitution.

The other defendants in Clay County, all of whom are scheduled to be sentenced Feb. 5, are:

• Daniel Steven Simpson, 44, found guilty of five counts of unlawful merchandising practices by a Clay County jury on Dec. 18;
• Edward Lee Maasen, 35, pleaded guilty to one count of unlawful merchandising practices on Nov. 19;
• James Michael Simpson, 48, pleaded guilty to one count of unlawful merchandising practices on Dec. 8;.
• James Michael Horn, 50, pleaded guilty to one count of unlawful merchandising practices on Jan. 8.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818