Attorney General's News Release

March 31, 2006

Independence woman who defrauded Internet auction bidders pleads guilty; ordered to pay $6,342 in restitution

Kansas City, Mo. — An Independence woman prosecuted by Missouri Attorney General Jay Nixon for defrauding bidders on several Internet auction sites has been ordered to repay 13 victims a total of $6,342.25 and given a five-year suspended sentence after entering a guilty plea today in Jackson County. Circuit Judge Jay A. Daugherty also approved a civil judgment against Hope Madewell (DOB - 7/28/75) that prohibits her from advertising or offering for sale merchandise on Internet Web sites and requiring consumers to make an advance payment as a condition to shipping the merchandise.

Madewell offered dozens of items for sale through sites that included eBay, but did not deliver the merchandise to bidders who paid for the items. The items included jewelry, iPods and watches. Madewell used both her own name and several aliases when offering the items for sale. Nixon said that when Madewell offered the items for sale, she told bidders they could use PayPal as a secure means of conducting the transaction. When it came to complete the sale, however, Madewell then insisted the buyers send her a check or money order.

A Jackson County grand jury indicted Madewell on the charge of unlawful merchandising practices in May 2005 at Nixon's request. Earlier in 2005, Nixon filed a civil lawsuit against Madewell and obtained a temporary restraining order against her. Today's sentencing and consent judgment resolve both cases.

Nixon says consumers who use online sellers or auctions can protect themselves by:

• Verifying the seller's identity. Some sellers may use a forged e-mail header, making it impossible to contact them.
• Paying by credit card. If you don't receive the merchandise, or it is not what you expected, you can challenge the charges.
• Asking about using an escrow agent if the seller does not take credit cards. Escrow agents, such as PayPal, take payment from the buyer and give it to the seller after verifying the bid item is satisfactory. There usually is a fee.
• Avoiding impulse bids and purchases. Make sure you are getting the best price.

Consumers who have complaints about Internet auction fraud may file a complaint with the Attorney General's Office at www.ago.mo.gov.

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 Press Secretary.

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