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July 2, 2009

Man pleads guilty to seven counts of consumer fraud

By Krystal J. Carman

July 2, 2009 — A former Inola resident has pleaded guilty in Rogers County District Court to seven counts of consumer fraud.

Stephen Douglas Lewis, 60, was arrested in Nebraska in December and charged with 14 counts of violating the consumer protection act in connection with accepting payment for products that were not delivered.

On Wednesday, Lewis entered a guilty plea to seven of the 14 counts, receiving a five-year deferred sentence for each count. He will also have to pay $56,869.50 in restitution and agree to stop doing online business in Oklahoma.

The Oklahoma Attorney General’s Office began an investigation into Lewis’ online sales in January 2006.

According to Investigator Ray Rupert, who spoke to 14 of the victims but alleged there may be additional victims, the incidents occurred between March 2005 and May 2007.

Consumers would find various items for sale on the internet, including gooseneck and cargo trailers, horse trailers, storage buildings, insulation including labor and fencing panel, being sold by Lewis through his many company names. Lewis was conducting business under business names of Cowboy and Company, USA Cowboy Inc., Arieyl Trailer and Pioneer Builders Supply and Services. Lewis’ victims spanned the country from California to New York, with his businesses listed in Rogers County.

Each of the 14 victims told Rupert a similar story of providing all or half of payment for various items, inquiring why the item was not delivered and only receiving excuses for the delays, providing the remaining payment and never receiving the purchased products.

One victim contacted the Claremore Police Department concerning a storage shed that was purchased but not delivered. In June 2007, a Claremore Police officer contacted Lewis, according to court documents, and Lewis indicated he was in the process of refunding the customer’s money. That refund did not happen, nor did the customer receive the purchased product.

In December 2007, the Oklahoma Tax Commission issued a tax warrant against Lewis and USA Cowboy Inc. for unpaid taxes on the online sales. Lewis was utilizing eBay for a greater portion of his sales, according to court documents. Between the 14 victims in the case, Lewis accepted $51,000 in payments.



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