V. Assignment of Proceeding

Geoffrey F. Brown is the Assigned Commissioner and Christine M. Walwyn is the assigned Administrative Law Judge in this proceeding.

Findings of Fact

1. The Commission initiated this proceeding in response to consumer complaints and CPSD's investigation.

2. The former permit issued to Globe Van Lines, Inc. on January 11, 2000 was suspended or revoked for all but 14 days of the period of the investigation in this OII/OSC.

3. The record reflects that CPSD did not bring any charges related to the 14 days during the period under investigation that Globe Van Lines, Inc. held operating authority under permit T-189,207.

4. Respondents did not have operating authority for any of the intrastate moves that are the subject of this OII/OSC.

5. Respondents advertised and operated without a license and insurance in a manner that inflicted serious financial and emotional harm on the public.

6. The testimony and declarations of customers establish that respondents were aware of the harm they caused members of the public and took no actions to end ongoing violations or to provide restitution to victims of their wrongdoing. The behavior of respondents is particularly offensive because customers that attempted to seek redress from respondents were subject to intimidation, threats, and verbal abuse.

7. Respondents owe reimbursement to 73 customers for illegal overcharges, failure to provide required information and disclosure, and monies owed on outstanding Small Claims Court judgments. These claims are detailed in attached Appendix A.

8. The CPSD photos in Appendix B show that customers' personal goods were not segregated by customer and were haphazardly stacked and strewn about. One customer testified that her belongings were delivered from respondents' storage facility with rat droppings.

9. A monetary fine of $50,000 is reasonable in light of the guidelines established in Decision 98-12-075.

10. CPSD's investigative costs of $13,292.50 are reasonable.

Conclusions of Law

1. The proper administrative procedures were followed in suspending and revoking Permit T-189,207.

2. Respondents were given proper notice of all administrative actions of the Commission in regards to Permit T-189,207 and pending Permit T-189,798.

3. The burden of proof lies with CPSD to establish by a preponderance of evidence that respondents have violated applicable statutes, rules, and regulations.

4. CPSD has met its burden of proof by establishing through staff investigators, public witnesses, and documentary evidence that respondents are guilty of 604 violations of the Public Utilities Code and, further, that respondents actions render them unfit under Sections 5135(e) and (f) of the Public Utilities Code to be granted a household goods permit.

5. Mr. Yaniv Nagar's testimony that all customer complaints were satisfactorily resolved is not supported by production of a claims log and is contradicted by the sworn declarations and testimony of customers.

6. Mr. Isaac Nagar's testimony that his former permit remains active and in good standing is unsupported by any documentary evidence and contradicted by CPSD's evidence.

7. Respondents fail to establish that they maintained proper liability and workers' compensation insurance for the time periods CPSD cites they operated without insurance.

8. Section 5258 does not release Isaac Nagar from any disciplinary action here.

9. Respondents should reimburse customers shown in Appendix A, $61,590.52 within 15 days after the date this decision is mailed to the service list.

10. Respondents should pay a fine of $50,000 to the State of California's General Fund within 45 days after the date this decision is mailed to the service list.

11. Respondents should reimburse the Commission $13,292.50 for the cost of staff's investigation within 45 days after the date this decision is mailed to the service list.

12. Respondents are unfit to hold operating authority as a household goods mover under Sections 5135(e) and (f).

13. Pending Permit T-189,798 should be denied for cause.

14. Respondents should remove all former Permit T-189,207 numbers from its advertisements and trucks.

15. Respondents should immediately cease and desist to operate as an intrastate household goods carrier.

16. Respondents, or any entity in which respondents hold a financial or management interest, are required to apply for a license only through the formal application procedure. In any future application, respondents should reference this decision, and include a showing of rehabilitation and compliance with all the terms of this order.

17. This order should be effective immediately in order to protect members of the public.

18. This proceeding is closed.

ORDER

IT IS ORDERED that:

1. Respondents' pending permit T-189,798 is denied for lack of fitness under Public Utilities Code Section 5135.

2. Respondents are ordered to cease and desist all operations as an intrastate household goods carrier and to immediately remove all old permit T-189,207 numbers from their advertising and trucks.

3. Respondents shall pay restitution to customers shown in Appendix A of $61,590.52 within 15 days after the date this decision is mailed to the service list. Proof of payment shall be filed and served on the service list and shall be provided to the Commission's Executive Director and the Director of Consumer Protection and Safety Division (CPSD) within five days of payment.

4. Respondents shall pay a fine of $50,000 to the State of California's General Fund within 45 days after the date this decision is mailed to the service list. Proof of payment shall be filed and served on the service list and shall be provided to the Commission's Executive Director and the Director of CPSD within five days of payment.

5. Respondents shall reimburse the Commission $13, 292.50 for the cost of staff's investigation within 45 days after the date this decision is mailed to the service list. Proof of payment shall be filed and served on the service list and shall be provided to the Commission's Executive Director and the Director of CPSD within five days of payment.

6. Respondents, or any entity in which respondents hold a financial or management interest, are required to apply for a license only through the formal application procedure. In any future application, respondents shall reference this decision, and shall include a showing of rehabilitation and compliance with all the terms of this order.

7. Investigation 04-08-023 is closed.

This order is effective today.

Dated August 25, 2005, at San Francisco, California.

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