Attorney General's News Release

March 28, 1995

Nixon sues to put brakes on Knievel scheme

Jefferson City, Mo. — Attorney General Jay Nixon this morning filed suit in Taney County Circuit Court against Las Vegas businessman Kelly Knievel and his company, Western Express Service Co. Inc., for allegedly defrauding several senior citizens in Missouri of thousands of dollars.

Nixon charged that Knievel, the son of former celebrity stuntman Evel Knievel, promised prizes in exchange for the purchase of products costing many times the value of the prize.

“Using the telephone to bully senior citizens into buying personalized trinkets in exchange for prizes of dubious worth is despicable,” Nixon said. “We will work aggressively to keep this and other types of telemarketing fraud out of Missouri.”

Nixon said that representatives of the company would target senior citizens through unsolicited phone calls and inform them they had won a valuable prize, such as a new car, $10,000 in cash or $10,000 in gold bars. In order to obtain the prizes, the company allegedly pressured consumers to send money or authorize a credit card charge to purchase products such as hats, pens, key rings and other items which were engraved or customized.

Nixon said the company often made repeat solicitations to consumers who purchased products, some of whom were charged as much as $1,869 for the products. Nixon also alleged that company representatives obtained credit card numbers from consumers on the pretext of needing verification, but then made unauthorized purchases on the credit cards.

Company representatives also allegedly told consumers that their chances of winning a more valuable prize would be enhanced by purchasing more products. The company would ship the products along with a catalog of prizes for the consumer to choose from. None of the prizes available through the catalog were the “grand prize” of a new car or $10,000 in cash or gold.

Nixon filed the suit in Taney County Circuit Court because one of the senior citizens allegedly defrauded lives there.

Nixon is asking the court to issue a preliminary and permanent injunction to order Knievel and Western Express Service to cease deceptive merchandising practices in Missouri. He also asked the court to order the company to pay restitution to Missouri consumers, along with a civil penalty and court costs. Nixon said Missouri was one of five states taking action today against Kelly Knievel or Western Express Service.

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