In the Matter of the Complaint Against:

AMERICAN HANDICAPPED SHOW FUND,
P.O. Box 6853,
Warner Robins, GA 31095-6853;

EVENTS INTERNATIONAL, INC.,
P.O. Drawer 49708,
Sarasota, FL 34230-6708;

JIM NORDMARK,
7480 Howard Creek Road,
Sarasota, FL 34241;

KENNETH MALONE,
106 South Kimberly Road,
Warner Robins, GA 31088-7307

P.S. Docket No. 34/40

Grant, Quentin E., Chief Administrative Law Judge

APPEARANCE FOR COMPLAINANT: Geoffrey A. Drucker, Esq.,
Consumer Protection Division, United States Postal Service, Law
Department, Washington, DC 20260-1114

APPEARANCE FOR RESPONDENT KENNETH MALONE: None

INITIAL DECISION

On April 26, 1989, Complainant filed a complaint alleging that Respondents are violating 39 U.S.C. § 3005 by conducting a scheme or device for obtaining money or property through the mail by means of false representations. The scheme alleged involves telephone calls from employees (telemarketers) of Events International, Inc., to residents of the Warner Robins, Georgia area in which the telemarketers falsely represent that they are calling for American Handicapped Association (AHA) seeking contributions to fund the admission of elderly persons and handicapped children to an ice show at the Warner Robins Civic Center resulting in Respondents' receipt of money contributions through the mail.

All respondents except Kenneth Malone entered into a settlement agreement with Complainant resulting in an order of the Judicial Officer, dated July 19, 1989, indefinitely suspending the proceedings against them and remanding the proceeding relating to Kenneth Malone for further processing.

On July 7, 1989, counsel for Kenneth Malone were allowed to withdraw because, as stated in counsel's motion, Mr. Malone had moved leaving no forwarding address and had not contacted counsel for more than 30 days, rendering counsel unable to effectively represent him.

Because of Mr. Malone's failure to provide a current address, copies of the order permitting withdrawal of his counsel, the order rescheduling the hearing to July 27, 1989, and several earlier orders were returned by the post office at Warner Robins, GA, marked "Moved left no address - Unable to forward - Return to Sender."

A hearing was held in Washington, DC on July 27, 1989. There was no appearance thereat by or on behalf of Respondent Malone. Complainant's evidence was received. This decision is based on the pleadings and Complainant's evidence.

FINDINGS OF FACT

1. Respondent Events International, Inc. (Events) is a Florida corporation with an official mailing address of P.O. Drawer 49708, Sarasota, FL 34230 (Ans. P2).

2. Respondent Kenneth Malone managed a telemarketing operation for Events at 106 South Kimberly Drive, Warner Robins, GA (Ans. P4).

3. Events telemarketers, working under the direction of Respondent Malone, made telephone calls from the South Kimberly Drive address to residents of the Warner Robins area (Ans. P5). The telemarketers stated that they were calling for the American Handicapped Association (AHA) soliciting funds for an ice show at the Warner Robins Civic Center (Tr. 5, 6).

4. Recipients of such telephone calls who expressed a desire to contribute received a letter on an AHA letterhead enclosing a pledge invoice for $20.00 to be paid to A.H.A. Show Fund and mailed to that fund at P.O. Box 6853, Warner Robins, GA 31095 (CX-1; Tr. 6).

5. The letter accompanying the pledge invoice stated that the reasons for the prompt mailing of the pledge invoice was to arrange for the distribution of 1,000 tickets for the "Jubilee on Ice" to the area's elderly and handicapped children. The date given for this ice show was May 20, 1989.

6. Respondents did not make arrangements for the use of the Warner Robins Civic Center to present the "Jubilee on Ice" on May 20, 1989, and it was not held there.

CONCLUSIONS OF LAW

1. To obtain remittances of money or property through the mail, Events telemarketers working under the direction of Respondent Kenneth Malone falsely and materially represented that such remittances would be used to distribute to the area's elderly and to handicapped children tickets to an ice show to be held on May 20, 1989, at the Warner Robins Civic Center. This scheme violated 39 U.S.C. § 3005.

2. A cease and desist order in the form attached should be issued against Respondent Kenneth Malone pursuant to 39 U.S.C. § 3005(a)(3). Because of the settlement agreement executed by the other respondents, a mail stop order is not recommended.