I. INTRODUCTION AND BACKGROUND

Pursuant to Article 13.5 of the Commission Rules of Practice and Procedure, the Respondents named above and the Consumer Protection and Safety Division (CPSD) hereby agree to settle a portion (without having an evidentiary hearing), of Order Instituting Investigation (I.) 04-08-022. A summary of the background of this settlement follows:

· On April 18, 2002 the Commission License Section received an application for a households goods permit from All State Moving & Storage ("All State".) The corporate officers listed on the application are Jacob Sudai (President/Treasurer) and Israel Lerner (Secretary). The application listed the carrier's business and mailing address as 13148 Raymer Street, North Hollywood, CA 91605.

· On October 21, 2002 Staff began investigating All State and Washington Mini-Storage ("Washington") due to consumer complaints of overcharges and loss and damages.

· On February 28, 2003 the Commission denied All State's license application for failure to file evidence of cargo insurance.

· On April 29, 2003 Staff met with Israel Lerner to discuss All State's illegal moving activities. Mr. Lerner informed Staff that Prime Movers, All State and Washington were one and the same company.

· On May 15, 2003 the Commission received an application for a household goods permit from Israel Lerner, an individual doing business as V.I.P. Relocation. The application listed the carrier's business and mailing address as 13148 Raymer Street, North Hollywood, CA 91605.

· On July 28, 2003 Staff conducted a sting call to Washington in Maryland. An employee answering the phone stated that the company also operated as Prime Movers, and forwarded Staff to the company's California office. The California office phone number was the same as the one All State to conduct unlawful moving.

· On October 10, 2003 Staff obtained a Temporary Restraining Order (TRO) against All State Moving and Washington Mini-Storage and its officers operating or advertising without a permit, in Los Angeles Superior Court proceeding BC303987.

· On November 19, 2003 Staff obtained a Preliminary Injunction in proceeding against All State Moving and Washington Mini-Storage and its officers operating or advertising without a permit, in Los Angeles Superior Court proceeding BC303987.

· On December 15, 2003 V.I.P.'s application for a household goods permit was denied for failure to file evidence of workers' compensation insurance.

· On June 14, 2004 the Commission received an application for a household goods permit from V.I.P. Relocation, Inc. The corporate officers listed on the application are Israel Lerner (President) and Kfir Cohen (Vice-President.) The Application is MTR 189909

· On August 19, 2004 the Commission voted out the Order Instituting Investigation (OII) in this proceeding. Staff declarations detailing extensive unlicensed household goods operations by Respondents were served along with the OII to all Respondents.

· On October 5, 2004 a Prehearing Conference was held in this proceeding. The only Respondent attending was Israel Lerner representing himself and V.I.P. Relocation, Inc. Mr. Lerner indicated that he was no longer affiliated with All State or Washington Mini-Storage, that he understood the Commission's licensing requirements, and that he would be willing to settle the portion of the OII involving his activities with Staff in order to have Staff withdraw its opposition to V.I.P's application for a household goods permit being granted.

· On November 1, 2004 Staff member Suong Le, CPSD counsel Gregory Heiden and Israel Lerner held settlement discussions over the phone.

· On November 3, 2004 Staff served "Supplemental Prepared Testimony of Michael W. Nakasone on VIP Relocation, Inc." The report detailed extensive unlicensed activities by V.I.P. Relocation between December 20, 2003 and July 14, 2004, including eleven instances where Israel Lerner was admonished by Staff not to perform any moving services without a valid permit.

· On November 18, 2004 Staff member Suong Le, CPSD counsel Gregory Heiden and Israel Lerner held settlement discussions over the phone and came to an oral agreement on a settlement to be proposed to the Commission to resolve Mr. Lerner and V.I.P.'s participation in this proceeding.

In consideration of the mutual covenants contained in this Settlement, and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the Parties agree as follows: