ATTORNEY GENERAL SAYS LOOK OUT FOR SHYSTERS WHEN FLOOD IS OVER

After spending endless days and sleepless nights doggedly battling the rising Mississippi River, flood victims in Cape Girardeau now are being warned of another menace.

Missouri Attorney General Jeremiah W. "Jay" Nixon was in Cape Girardeau Wednesday to caution property owners about scam artists and price-gougers in the wake of the record flood of 1993.

"A lot of people have invested not only time and money, but also energy and sweat in defending their property." Nixon said, "And now to think that swindlers or sharp artists are going to try to take away their money or their property adds really a higher level of emotion to the whole situation."

Nixon has filed to enact a 120-day emergency rule to protect Missourians from price-gouging. The attorney general's action enables the state to prosecute those who inflate prices on products needed by flood victims.

"It's important for law enforcement to send a message as the floodwaters recede that Missourians and folks here in Cape County are not going to continue to be victims of this flood because of the illegal activity of scam artists."

Nixon said the emotional drain of spending weeks and, in some cases, months battling the flood leaves many Missourians vulnerable.

"When you get a pool of people who have worked very hard, who are very tired, who are finally getting back to their homes, they have the potential to be real victims because they want to get their houses fixed more quickly," he said.

Nixon cited several examples of scams and price-gouging of which consumers ought to be aware. During the flood, the attorney general's office received reports of false charities soliciting money for flood victims and telemarketing fraud that involved attempts to get lists of flood victims.

As the water recedes, home repair scams have become commonplace. Nixon said contractors have tried to get repair money up front and then failed to complete or in some cases even start the repair work.

Other scams include advance-fee loan arrangements, where someone guarantees a loan in exchange for up-front cash. Also, people have arrived at the doorstep of flood victims posing as government investigators in order to get inside their homes.

Price-gouging also has been reported. In St. Charles County moving contractors inflated prices 600 percent during the flood, and in St. Joseph after the city lost its fresh water supply gougers charged 300-500 percent more than costs to supply donated water.

The attorney general compared the gouging and fraud to looters preying on displaced homeowners something that wasn't a problem during the flood.

Statewide, out of 30,000 families and 6,000 businesses flooded, fewer than 20 cases of looting were reported.

"We must continue to ensure there's no looting in the form of price-gouging," Nixon said. "We're not looking for the 4-5 percent increase.

"We live in a democracy and we all believe in capitalism out there, and if there are additional costs out there for businesses, then obviously they can recoup those.

"(But) when people try to profit in this unprecedented tragedy in the state of Missouri by doing things such as gouging on the prices, we stand ready to work to make sure those things don't happen."

Cape Girardeau Police Chief Howard Boyd Jr. said he's had no reports of flood-related fraud in the city. He said that's likely because Cape Girardeau is the last Missouri city to see floodwaters finally recede.

Boyd said he's particularly concerned about the vulnerability of the elderly who live alone. He said there are agencies in the city that can put such people in contact with reputable repair contractors.

"Because a contractor has a local license does not automatically bring honesty and respectability," Boyd said. "It's not that difficult to get a tradesman license in this town."

Boyd and Cape Girardeau Prosecuting Attorney Morley Swingle said they would aggressively pursue reports of flood-related fraud in the city.

A pamphlet titled "Advice and Tips for Flood Victims" is available from the attorney general's office. Some copies also are available at City Hall.