Attorney General's News Release

February 13, 2002

Oklahoma alarm company to pay $30,000 restitution to 41 Missouri consumers under order obtained by Nixon

Jefferson City, Mo. — Forty-one consumers in central and western Missouri who bought alarm systems from an Oklahoma City company will receive restitution totaling $30,000 in a consent judgment obtained by Attorney General Jay Nixon.

Nixon sued the business, Alarm Professional Services (APS), and its owner, Gary D. Richardson, two years ago in Phelps County Circuit Court because of high pressure sales tactics and misrepresentations made by the company and its employees to Missouri customers, many of whom were elderly. The misrepresentations included promises of low interest financing and a failure to tell consumers that there was a fee to monitor the alarm system.

One of the employees, Walter R. Zitlow, pleaded guilty to criminal charges brought by Nixon in Callaway County in connection with sales of the alarm systems, which cost up to $4,000. Zitlow made false promises to consumers that they would receive significant rebates of the purchase price from the federal government. He served four months in prison on the conviction and is paying restitution of $230,000 as a condition of his probation. To date, he has paid more than $100,000 of that amount.

In addition to civil and criminal restitution, more than $113,000 in alarm contracts have been canceled by finance companies at Nixon's request. Nixon said the total value of relief obtained for consumers who purchased these alarm systems is more than $370,000.

In the judgment against Alarm Professional Services and Richardson, the defendants admitted they made the misrepresentations and used the high pressure sales tactics. The order, signed by Phelps County Circuit Judge John D. Wiggins, also lists 101 consumers who may opt out of their alarm monitoring contracts with no further liability if their contracts are still in effect. The restitution will be paid to specified consumers who were not covered under the earlier restitution order involving Walter Zitlow.

Nixon added that APS ceased doing business in Missouri after the lawsuit was filed in February 2000.

Missouri consumers who have complaints are encouraged to contact the Attorney General's Consumer Protection Hotline at 1-800-392-8222 or print a complaint form and mail it to the address on the form.

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 the Communications Office.

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