Irvine Firm Hit With $9-Million Judgment

A Missouri judge has ordered Direct American Marketers Inc. to pay $9 million in restitution, civil penalties and fees for defrauding citizens there through its massive sweepstakes mailings. Boone County Circuit Judge Ellen S. Roper in Columbia ruled that DAMI, based in Irvine, violated state law by sending Missourians solicitations that were “deceptive, suppress material facts and are unfair.” The mailings, often in the form of authentic-looking checks marked “Not Valid” in small type, urged consumers to dial a 900 pay-per-call number to find out what prize they won. About 163,000 responded. Unknown to most, who didn’t read the small type on the back of a letter, the calls typically cost $30 each. Consumers never won more than $1. DAMI Chairman Anthony Brown wasn’t available for comment.