In the Matter of the Complaint Against

VETERAN'S REPORT
P. O. Boxes 17751 and 23911
at Milwaukee, WI 53217-0751

P.S. Docket No. 15/180;

Grant, Quentin E.

APPEARANCE FOR COMPLAINANT:
Steven B. Caver, Esq.
Regional Inspector Attorney
Central Region Rm. 715,
Main Post Office Bldg.
Chicago, IL 60607-5401

APPEARANCE FOR RESPONDENT:
None

INITIAL DECISION

^*/

In a Complaint filed on February 17, 1983, the Complainant charged the Respondent with engaging in a scheme or device to obtain money or property through the mails by means of false representations made to addressees of unsolicited direct mailings in the form of invoices or statements of account and also made by telephone that:

(a) The addressee has previously authorized Respondent to publish an advertisement on addressee's behalf;

(b) The amount set forth on the face of the invoice is due and owed to Respondent; and

(c) Respondent's publication, Veteran's Report, is endorsed by, affiliated with, or sponsored by recognized veterans organizations.

The Complaint further alleges that such mailings constitute nonmailable matter within the ambit of 39 U.S.C. 3001(d), lacking a notice in the form proscribed by that statute and the implementing regulations, and that the mailing of such material constitutes prima facie evidence that the mailer is violating the false representation statute.

A hearing was held on April 22, 1983, in Washington, D.C., pursuant to notice given Respondent. The Respondent did not appear thereat in person or by attorney. The Complainant's evidence was taken. Complainant's witness was Postal Inspector John Hubbard.

FINDINGS OF FACT

1. Respondent, Veteran's Report, at the addresses set forth in the caption of this proceeding, has sent unsolicited direct mailings in the form of invoices or statements of account for advertising to be placed in a purported publication called Veteran's Report. Such mailings are exemplified by Complainant's Exhibits 3-C, 4-B, 5-C, and 6-B.

2. Respondent also makes representations by telephone to certain businesses that they have ordered advertising to be placed in a publication called Veteran's Report and demands payment therefor.

3. Respondent utilizes the post office boxes set forth in the caption hereof for receipt of the demanded payments through the mail.

4. Most, if not all, of the persons or businesses receiving such invoices and/or telephone calls have not authorized the placing of ads by Respondent in such a publication (Tr. 7-27).

5. Robert Dubester and Keith W. Kaiman are the principals involved in this scheme. Dubester opened P. O. Box 17751 at the North Shore Station of the Milwaukee Post Office in the name of Veteran's Report in May 1982. Keith W. Kaiman opened P. O. Box 23911 at the Bradley Station of the Milwaukee Post Office in July of 1982 (CX-1-2).

6. Dubester and Kaiman hire sales people to place telephone calls from Milwaukee, Wisconsin to small out-of-state businesses. These sales people are instructed that they are collecting on overdue bills for ads authorized to be placed in Veteran's Report. The telephone salesperson tells the businessman that the advertising was purchased the preceding year at some unknown time. If the salesperson persuades the businessman that he has, in fact, authorized the ad, an invoice is mailed from Milwaukee to the business. In some cases invoices are mailed even though the businessman was never contacted. The sales people are instructed not to use their given names, not to give out the location from where they are calling, and not to give out the business telephone number (CX-15, 16).

7. The publication, Veteran's Report, which Respondent's scheme purports to involve is neither endorsed by, affiliated with, nor sponsored by recognized veteran's organizations (CX-15).

8. Respondent makes the representations alleged in the Complaint. Such representations are materially false in fact.

9. The invoices mailed by Respondent are nonmailable matter under 39 U.S.C. § 3001(d)(2) lacking the notice required by the statute.

CONCLUSIONS OF LAW

1. Respondent's mailings and telephone calls convey to persons of ordinary mind the materially false representations alleged in the Complaint.

2. Respondent is engaged in a scheme to obtain money or property through the mails in violation of 39 U.S.C. § 3005.

3. An order in the form attached should be issued against Respondent.

*/ This decision was rendered orally at the conclusion of the hearing. It has been transcribed and edited for formal issuance.