IV. DISCUSSION

The Commission exercises continuing oversight of a carrier's fitness. Public Utilities Code § 5285 authorizes the Commission, upon complaint or on the Commission's own initiative and after notice and opportunity to be heard, to suspend, change, or revoke a permit for failure of the carrier to comply with any of the provisions of the Act, or with any order, rule, or regulation of the Commission, or with any term, condition, or limitation of the permit. Section 5139 gives the Commission power to establish rules for the performance of any service of the character furnished or supplied by household goods carriers.

We place tremendous trust in household goods carriers in granting them operating authority, a trust equaled by that of our citizens who tender their most personal and treasured belongings to movers. This carrier's pattern of violations, operations without a permit in force, failure to file evidence of public liability insurance, failure to file evidence of workers' compensation insurance, advertising moving services without a valid household goods carrier's permit, and continuing such advertising and operations after staff directives to cease all such unlawful activity, alarms us.

The respondents should recognize that the Consumer Protection and Safety Division's allegations described herein are grave and, if substantiated through hearing, may well constitute grounds for denial for cause of the respondents' application for operating authority and/or other appropriate sanctions and remedies, including a Permanent forfeiture of rights to operate as a household goods carrier in this state.

1. Violated § 5314.5 of the Public Utilities Code by advertising and holding itself out to the public as a licensed carrier;

2. Violated §§ 5139 and 5161 of the Public Utilities Code and GO 100-M by failing to procure adequate liability insurance, as required by law of all carriers;

3. Violated § 5133 of the Public Utilities Code by conducting operations as a household goods carrier without a permit in force from the Commission authorizing those operations;

4. Violated § 5286 of the Public Utilities Code by conducting operations as a household goods carrier during periods of suspension, or after revocation of its permit;

5. Violated § 5135.5 of the Public Utilities Code by failing to procure workers' compensation insurance coverage for its employees;

6. Violated § 5139 of the Public Utilities Code and the Commission's MAX 4, by failing to provide the required information, including a "Not To Exceed Price", on its shipping documents in violation of Items 128 and 132 of MAX 4;

7. Violated § 5139 of the Public Utilities Code by failing to furnish to each prospective shipper a copy of the information specified in Item 470 of MAX 4, in violation of Item 88 of MAX 4;

8. Violated § 5245 of the Public Utilities Code by charging in excess of the maximum allowable charge on estimated services, and failing to obtain a change order for increased charges in violation of Items 108 and 120 of MAX 4;

9. Violated § 5139 of the Public Utilities Code by failing to have shippers enter a Declaration of Value on shipping documents in violation of Item 136 of MAX 4;

10. Violated § 5139 of the Public Utilities Code by failing to acknowledge and timely process claims for loss or damage in violation of Item 92 of MAX 4;

11. Violated § 5139 of the Public Utilities Code by providing an estimated cost for proposed moving services that was not in writing and not done after a visual inspection of the goods to be moves in violation of Item 108 of MAX 4.

IT IS ORDERED that:

1. An investigation on the Commission's own motion is instituted into the operations and practices of the respondents, Ronen Perez dba Ford Moving and Storage, and Ford Moving and Storage, Inc. A public hearing on this matter shall be held expeditiously before an Administrative Law Judge (ALJ) at a time and date to be set at the prehearing conference. At the hearing, the respondents shall appear and show cause why its application for a household goods carrier permit should not be denied for cause and lack of fitness in view of the above listed allegations made by Staff.

2. During the pendency of this investigation, it is ordered that Respondents Ronen Perez dba Ford Moving and Storage, and Ford Moving and Storage, Inc. shall cease and desist from any violations of the terms of the "Preliminary Injunction" in Case No. BC300974 filed with the Superior Court in Los Angeles County, or the terms of probation ordered by the Superior Court for the County of Los Angeles as part of the sentence imposed in criminal complaint Case No. 3CR02645.

3. The Consumer Protection and Safety Division staff, if it elects to do so, may present additional evidence beyond that described in the declaration issued with this order, either by testimony or through documentation, bearing on the operations of the respondents and any new advertising of moving services to the public.

4. Scoping Information: This paragraph suffices for the "preliminary scoping memo" required by Rule 6 (c).

This enforcement proceeding is adjudicatory, and, absent settlement between staff and the respondent, will be set for evidentiary hearing. A hearing may also be held on any settlement for the purpose of enabling parties to justify that it is in the public interest or to answer questions from the ALJ about the settlement terms. A prehearing conference will be scheduled and held within 40 days and hearings will be held as soon as practicable thereafter in the Commission Los Angeles office. Objections to the OII may be filed but must be confined to jurisdictional issues, which could nullify any eventual Commission order on the merits of the issues about violations of statutes, rules, regulations or orders.

5. Respondents are hereby ordered to cease and desist performing any and all moves of any kind until the Commission has an opportunity to review and pass judgment on the instant application for reinstatement as a mover.

6. Respondents are hereby placed on notice that if staff's allegations are proven during the evidentiary hearing, the Commission may impose fines and penalties according to those authorized by law.

7. The Executive Director shall cause a copy of this order, the staff declarations and other related documents to be served by certified mail upon respondents:

8. A copy of this order and the staff declaration shall also be sent by certified mail to:

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