I. ENFORCEMENT HISTORY

A. Termination of Telephone Service-Finding of Probable Cause, PUC Section 5322

Section 5322 of the Public Utilities Code authorizes the Commission staff to obtain a magistrate's order to disconnect an unlicensed household goods carrier's telephone service. On June 14, 2000, CPSD staff obtained a "Finding of Probable Cause" Order signed by Judge Stephen A. Marcus, Superior Court of the State of California, Los Angeles Judicial District, following repeated attempts to get Mr. Perez to cease his illegal operation. By letter dated February 10, 2000, and 6 separate verbal admonishments (February 9, 2000, March 22, 2000, April 21, 2000, April 25, 2000, May 2, 2000 and May 25, 2000), staff warned Mr. Perez to cease and desist all unlawful advertising and operations as a mover unless he obtained operating authority from the Commission. Nevertheless, Mr. Perez continued to place advertisements for his moving services in the Beverly Hills and Santa Monica editions of the Pacific Bell Smart Yellow Pages and through direct-mail solicitation of consumers. The Court's order directed Pacific Bell/SBC to terminate telephone service to two SBC landline numbers, both registered to Mr. Ronen Perez dba Ford Moving and Storage.

B. Citation Forfeiture #CFH-019

On February 6, 2001, CPSD staff issued Ronen Perez dba Ford Moving (File No.: MTR-189248) an administrative Citation Forfeiture (No. CFH-019). The citation was issued for violations of various sections of the CPUC Code:  1) §5133, operations without a permit; 2) §5135.5, failure to have evidence of workers' compensation insurance; 3) §§5139 and 5161, failure to have evidence of PL/PD insurance; 4) §5286, operations during suspension; 5) §5139, violation of Commission MAX 4 tariff rules; and 6) §5314.5, advertising as a household goods carrier without a permit.  Ronen Perez dba Ford Moving and Storage was fined $2,000 by the Commission.  Although Perez agreed to the citation, he made only three installment payments of $500 each (April 4, 2001, May 2, 2001 and June 8, 2001). Perez has not paid the fourth and final payment.

C. Criminal Complaint - Case No. 3CR02645

On July 1, 2003, Commission staff filed a criminal complaint with the Los Angeles City Attorney's Office. CPSD staff investigated Ford Moving and Storage after receiving consumer complaints alleging overcharges, goods being held hostage for higher payment, and damages to personal belongings. The investigation disclosed that Perez continued to perform moving services after his PUC household goods carrier permit was revoked in August 2002. The investigation also uncovered violations of PUC consumer protection rules that movers are required to follow. Ronen Perez and Ford Moving and Storage, Inc. were charged with 2 counts of felony theft and 13 misdemeanor counts for the following violations of the Penal Code (PC) and the Public Utilities Code (Pub. Util.):

    · §487(a) PC - "did feloniously steal, take, carry, lead, or drive away the personal property of another, and did fraudulently appropriate property which has been entrusted to him, and did knowingly and designedly, by any false or fraudulent representation or pretense, defraud any other person of money, labor or real or personal property, of a value exceeding four hundred dollars ($400.00)" (2 counts).

    · §5133 Pub. Util - "willfully and unlawfully engaged in the business of the transportation of used household goods and personal effects, by motor vehicle over the public highways in this state, without a permit in force issued by the Commission authorizing those operations" (1 count).

    · §5139 Pub. Util. - failed to provide an Agreement for Service and a Shipping Order and Freight Bill to shippers in accordance with Item 128, subsection 2 of Commission's Maximum Rate Tariff (MAX) 4 (9 counts).

    · §5286 Pub. Util. - "willfully and unlawfully engaged in the business of the transportation of used household goods and personal effects, by motor vehicle over the public highways in this state, during suspension and after revocation of its permit" (1 count).

    · §5314.5 Pub. Util. - knowingly and willfully issued a written advertisement, without a valid permit issued by the California Public Utilities Commission (2 counts).

On January 26, 2004 Ronen Perez entered a Plea of Nolo Contendere to 8 counts of violations of the Public Utilities Code. The court sentenced Perez to 36 months probation, to serve 90 days in the county jail, or to perform 60 days of community service, and ordered restitution payments to 17 victims. The defendant is to obey all laws and is prohibited from operations in the moving business without the required household goods carrier permit. The court also ordered Perez to pay investigation costs of $ 2,000 to the Commission.

On August 19, 2003, Commission staff filed a complaint for temporary restraining order, preliminary injunction, permanent injunction, and action for recovery of civil penalties in the Superior Court of the County of Los Angeles. A hearing was held on August 21, 2003 in which the PUC was granted a temporary restraining order. Further hearing was held on September 12, 2003, when the court issued a preliminary injunction, which provides that during the pendency of the civil action, the defendants are restrained and enjoined from operating or advertising as a household goods carrier within the State of California. Staff reports that Mr. Perez has since violated this injunction by conducting operations as a household goods carrier during October and November 2003. (See Declarations of Morris, Gaiman and Jacobs discussed below and contained in Staff's Declaration.). In addition, on March 4, 2004, staff conducted a sting call to (800) 517-5777. Staff was given a rate quote of $64 per hour for two men and one truck. (See staff's declaration)

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