Attorney General's News Release

February 8, 2000

Nixon sues Oklahoma company for fraudulently selling alarm systems; salesman arrested on criminal charges

Jefferson City, Mo. — Attorney General Jay Nixon today filed a lawsuit against a Oklahoma company whose salesman Nixon said fraudulently sold alarm systems to several elderly Missourians after telling them falsely that they would receive government or tax rebates of more than 90 percent of the price of the system. The price of the system in some cases exceeded $4,000.

Nixon filed the lawsuit in Phelps County Circuit Court against Alarm Professional Services (APS), of Oklahoma City; the company's director, Gary D. Richardson; and salesman Walter R. Zitlow. Nixon also has filed three criminal charges of unlawful merchandising practices in Callaway County Circuit Court against Zitlow for alleged criminal conduct in connection with the sales. Zitlow is out on $30,000 bond.

The criminal complaint and the civil lawsuit both allege that Zitlow falsely told some elderly consumers who purchased the systems which contained a medical alert feature that because they were under medical care or had a medical condition, they would receive rebates in excess of 90 percent of the purchase price from Medicare or a Medicare-like agency or as a tax rebate.

The civil lawsuit seeks restitution for consumers who may have been defrauded, as well as appropriate penalties and investigative and legal costs from the defendants. Nixon also is seeking injunctions against the defendants.

The Attorney General's Office was assisted in its investigation of Zitlow and APS by investigators with the Callaway County Prosecuting Attorney's Office. Zitlow is scheduled to be arraigned on March 3.

Unlawful merchandising practices is a class D felony under Missouri law, punishable by up to five years in prison and a $5,000 fine. The charges against Zitlow are merely accusations; as in all criminal cases, the defendant is presumed innocent until or unless proven guilty in a court of law.

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