II. COMPANY BACKGROUND

A. Mr. Move's License History (MTR 184,175)

Mr. Move is a licensed, statewide household goods carrier (HHG) which operates primarily from an office located at 6820 Santa Monica Blvd., Los Angeles, California. The Commission's License Section records show the carrier's mailing address as 7040 Darby Avenue, Reseda, CA, and the business address as 19401 Londelius Street, Northridge, CA. Mr. Move incorporated in California on December 21, 1994 (corporation # 1874974.) According to documents obtained from California Secretary of State, Eli Galam is its Chief Executive Office (CEO) and the person who executed the Articles of Incorporation. Secretary of State's records also showed Zion Guetta as its Agent for Process of Service, however, in a staff interview on August 1, 2003, Eli Galam stated that A. Eli Galam (his cousin) is now the Agent for Process of Service.

Eli Galam previously held a household goods permit as an individual doing business as (dba) Load Rock N Roll under File Number T-172,650. On May 30, 1995, Eli Galam filed an application to transfer his individual HHG permit to the corporation, Mr. Move. The Commission granted operating authority to Mr. Move on March 11, 1996 (permit # Cal T-184,175.) Since late December 2002 to date, Mr. Move's permit was suspended on at least six (6) occasions for various administrative reasons including insurance suspensions.

B. Affiliation with Load Lock N Roll (MTR 189,076)

Load Lock N Roll Moving and Storage, Inc. (Load Lock N Roll), is a California corporation incorporated on March 3, 1993. Its president and sole officer was Mike Amos Galam (Mike Galam). In an interview with Staff on February 12, 2003, Mike Galam stated that he is the manager and administrator for Mr. Move. He stated that he "does mostly sales and bookkeeping" adding, that he is not there on a day-to-day basis to run the operation.

Load Lock N Roll's business address was 6820 Santa Monica Blvd., Los Angeles, CA 90038, the same address currently used by Mr. Move. License Section records show that Load Lock N Roll was issued a household goods carrier permit on November 10, 1998. The permit was revoked on March 26, 2002 for failure to exercise the permit for a period of one year, pursuant to Public Utilities Code § 5284².

In 1998, the Commission issued an Order Instituting Investigation (I. 98-03-012) into the operations of Mike (Amos) Galam dba Load Lock N Roll. On May 29, 1998, Mike Galam signed a Settlement Agreement, which was approved and adopted in Decision No. 99-02-027 dated February 4, 1999. The decision ordered Load Lock N Roll to pay a $15,000 fine, resolve customer complaints, and pay customers restitution. The decision also placed a 40-day suspension and a two-year probation period upon the carrier's permit. Mike Galam and Load Lock N Roll were ordered to refrain from providing oral estimates of total costs; provide adequate equipment and ensure proper supervision and training of employees; refrain from physical abuse of customers as well as threats thereof; refrain from using pre-printed Not to Exceed prices on contracts, specifically the amount of $10,000 used as a standard on all contracts; refrain from charging a higher rate for payment not tendered in cash if only the cash rate was quoted; properly complete and provide shipping documents, completed insurance Valuation options and Information Booklets as required by Max 4; and refrain from denying loss/damage claims solely because said loss/damage was not noted at the time of delivery.

C. Criminal Convictions

In a joint investigation with the Los Angeles City Attorney's office, Staff investigated Mr. Move and its president, Eli Galam, and Luis Alfredo Soriano (moving crew foreman), after receiving consumer complaints alleging overcharges, goods being held hostage for higher payment, poor service, and loss or damages to personal belongings. The investigation disclosed that Mr. Move continued to perform moving services during periods when its HHG permit was suspended, and uncovered violations of the Commission consumer protection rules.

On August 1, 2003, the Los Angeles City Attorney's Office filed a criminal complaint against Eli Galam and Mr. Move in Los Angeles County Superior Court (case number 3CR02706), alleging violations of the Public Utilities Code, MAX 4, and the Penal Code.

In September 2004, Eli Galam, the corporation (Mr. Move) and Luis Alfredo Soriano (foreman) were charged with ten (10) counts of attempted extortion (Penal Code §§ 664/518), fifteen (15) counts of failing to observe Commission rules (Public Utilities Code § 5139), one count of conducting office moves without authorization, one count of making false/misleading statements, one count of operating with a suspended permit (Public Utilities Code § 5286) and one count of vandalism (Penal Code § 594a).

On September 10, 2004, a Stipulation to Sentencing Order was filed that provided:

A. The corporation, Mr. Move, entered a Plea of Nolo Contendre to twelve (12) misdemeanor counts for violations of the Public Utilities Code and MAX 4 rules, including misrepresenting rates and scope of services to the public, failing to sign and provide agreements for moving services, failing to provide customers with freight bills upon completion of the move, failing to unload a shipment to a customer upon payment of the "Not To Exceed Price", and charging incorrect rates for a long distance move. The court sentenced the corporation to 36 months summary probation, ordered it to pay $ 1,000 fine plus $ 3,200 penalty assessment on five (5) counts, $ 22,335 in restitution to 18 victims for overcharges, loss or damages, and $ 100 to the Victims' Restitution Fund.

B. Eli Galam, President, entered a Plea of Nolo Contendre to eleven (11) misdemeanor counts for violations of the Public Utilities Code and MAX 4 rules. The court sentenced Eli Galam to serve 45 days in jail or CalTrans duty, placed him on 36 months summary probation, and ordered him to pay $ 100 to the Victims' Restitution Fund.

C. Luis Alfredo Soriano, crew foreman, entered a Plea of Nolo Contendre to one count of criminal trespass (Penal Code § 602(m).) The court sentenced Luis Soriano to serve 20 days in jail or perform CalTrans duty, placed him on 36 months summary probation, and ordered him to pay $ 100 to the Victims' Restitution Fund.