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Medical alarm scam brings seven-year prison term

An Oklahoma man was sentenced Monday in Callaway County Circuit Court to seven years in prison in connection with a home medical alarm system scam that defrauded approximately 65 Missourians out of as much as $4,000 each.

Attorney General Jay Nixon filed the criminal charges last year against Walter R. Zitlow, 53, Oklahoma City. Zitlow was a salesman for Alarm Professional Services. Circuit Judge Gene Hamilton sentenced Zitlow to five years in prison on one count and two years on the second count. The sentences will run consecutively.

"Many of the elderly consumers who paid as much as $4,000 for this alarm system with a medical alert feature bought it only because Zitlow falsely told them they could receive a government or tax rebate for 90 percent of what they paid," Nixon said. "This is a significant amount of prison time and shows we aggressively pursue scam artists who rip off Missourians."

Nixon also is pursuing a civil lawsuit against Alarm Professional Services and its director.

Young driver injured

Michelle Brauner, 17, Holts Summit, was treated and released from Capital Region Medical Center after a two-car accident Monday afternoon.

The Missouri Highway Patrol said the accident occurred as Brauner drove off the roadway, overcorrected and hit another vehicle. The driver of the second vehicle is unknown.

The accident happened at 4:30 p.m. Monday on Summit Drive at County Road 390 in Callaway County.

Attorney General Corbett takes action against York alarm monitoring company accused of deceiving the elderly and disabled

HARRISBURG - Attorney General Tom Corbett today announced that a York County business will refund consumers, pay fines and change its sales campaigns and contracts following claims that it deceptively marketed and sold electronic in-home burglar, fire and medic alarm monitoring systems to the elderly and/or disabled.

Corbett said the Bureau of Consumer Protection reached an "Assurance of Voluntary Compliance" agreement with Crime Intervention Alarm Co., 320 Loucks Road, York. The civil legal action resolves alleged violations of Pennsylvania's Consumer Protection Law, Telemarketer Registration Act and the Plain Language Consumer Contract Act.

According to investigators, Crime Intervention Alarm Company entered into contracts with consumers for the sale and installation of electronic residential security monitoring equipment and services designed to alert authorities during a medical, fire or police emergency.

Agents said the company uses the Yellow Pages, the Internet and telemarketing campaigns to advertise and promote its products and services to mostly older and/or disabled consumers who live independently. Some of the ads offer potential customers, "VETERAN AND SENIOR CITIZEN DISCOUNTS."

According to the agreement, consumers interested in the alarm monitoring services were required to sign a five year contract. Several buyers complained that certain terms were too small to read and that the contracts failed to clearly and conspicuously disclose that:

- The service agreements had a built-in or automatic five year renewal clause.
- The prices may increase as much as 10 percent per year for each year of the five year sign-up period.

In addition, several consumers who were contacted at their homes to buy the
products and services claimed that they failed to receive their three day right to cancel notification as required by state law.

"Inadequately disclosed renewals, unfair price increase language and no notification of cancellation rights are not acceptable business practices," Corbett said. "Any attempt to bury or omit these types of terms and conditions is deceptive and illegal. Our agreement resolves these issues offering better protections to those who do business with the company in the future."

Corbett said in addition, the company will allow consumers to void the contract due to death, relocation to an assisted living, hospital or nursing home facility, or if a live-in health care worker moves into the residence.

The agreement also claims that more than a dozen consumers complained that they were illegally contacted by the company on their home phones even though they were officially enrolled on Pennsylvania's "Do Not Call" list.

Additionally, Crime Intervention Alarm Company is accused of including the trademarked Better Business Bureau (BBB) torch logo on its website, implying that it is a member of the BBB, presumably in good standing. In reality, the company is not a member and has an unsatisfactory record with the organization.

Under the terms of the agreement, the company admits no wrongdoing and is required to:

- Pay restitution to eligible consumers who file a complaint with the Attorney General's Office before July 16, 2006.
- Pay $13,000 in civil penalties and costs.
- Change its contract language, format and business practices to be in compliance with Pennsylvania's Consumer Protection Law, Telemarketing Registration Act and Plain Language Consumer Contract Act.

Corbett said that consumers who believe they are entitled to restitution in this case can file a complaint with the Attorney General's Bureau of Consumer Protection by calling 1-800-441-2555 or file electronically by visiting www.attorneygeneral.gov.

The assurance was filed in the York County Court of Common Pleas by Deputy Attorney General Kathryn H. Silcox of the Attorney General's Bureau of Consumer Protection in Harrisburg.