III. Description of Settlement

The settlement provides as follows:

A. Restitution to Customers

The settlement identifies two groups of customers to whom Respondent must pay restitution. Attachment A to the settlement (Attachment A) lists ten customers who have filed claims with Respondent for specified amounts. Attachment B to Settlement (Attachment B) lists two customers who have filed civil litigation or other proceedings against Respondent, and two additional customers, Corrina Ortiz and Tom Johan, with whom Respondent is required to initiate mediation or other dispute resolution proceedings pursuant to MAX 4. The settlement requires Respondent to pay restitution (1) directly to CSD to forward to the former customers listed in Attachment A in the amount of their claims filed with Respondent, and (2) as required by any agreement, award, or decision in a mediation, arbitration, or judicial proceeding to customers listed in Attachment B.

1. Payments to Customers Listed in Attachment A.

Within five days of signing the settlement, Respondent shall either pay restitution in the amount of $3,210 to her former customers listed in Attachment A or shall provide CSD with proof of prior restitution payments to these customers. If Respondent chooses the latter, CSD shall review the documentation regarding prior restitution payments and notify Respondent within three days after its receipt whether CSD will accept this documentation as satisfaction of any of the restitution obligations stated in Attachment A.

Within two days of receipt of CSD's communication, Respondent shall pay restitution either in the amount shown in Attachment A or as modified by CSD. Respondent has agreed not to contest or appeal CSD's determination regarding the amount of restitution to be paid. If Respondent fails to provide documentation regarding previous restitution payments to former customers, she is deemed to have agreed to pay the full amount as shown in Attachment A.

Respondent's counsel, Michael B. Taggart, shall make the restitution payments to CSD on Respondent's behalf through a bank check drawn on his client trust account and made payable to former customers in the amounts shown in Attachment A. CSD will record the names of the former customers and the dates and the amount of the check, and mail the checks by first class mail to each customer. Respondent is required to pay her counsel $3,2l0.00 by certified check in advance to cover these restitution payments.

Within 15 days after the mailing of the restitution checks, CSD shall report to the assigned ALJ the name of each former customer to whom a check was mailed and the amount of restitution paid. Within five days after receipt of CSD's report, either party may request the Commission to convene a PHC to discuss the report and whether further proceedings are necessary.

2. Payments to Customers Listed in Attachment B

Respondent has agreed to promptly make restitution payments to her former customers listed in Attachment B and to send CSD copies of cancelled checks or other financial records documenting the payments within five days after payment is made. Since Respondent failed to process the claims for loss or damage filed by two of the former customers listed in Attachment B, Corrina Ortiz and Tom Johan, she has agreed to mediate or arbitrate these claims and to comply with any restitution obligations which arise out of the mediations or arbitrations.

B. Relinquishment of Permit/Disclosure Requirements for Reapplication for Permit After Five Years

Respondent has agreed to relinquish her permit. She also agrees not to operate as a household goods carrier, to apply for a permit, or to operate, control, manage or own any household goods carrier business for five years, beginning on the date of the Commission's order approving the settlement. If Respondent wishes to reapply for a permit after five years (including as a joint applicant), the application must include:

A reference to this proceeding;

Proof of her fitness to operate within California;

A copy and proof of Respondent's compliance with any mediation agreement, arbitration award, and/or judicial order resulting from any of the proceedings listed in Exhibit B;

Any state or federal administrative, law enforcement, or judicial proceeding involving Respondent;

Other information that CSD may deem relevant and necessary.

C. Enforcement of Settlement

Section 2.6. of the settlement² provides that CSD may petition the assigned ALJ for further proceedings if Respondent fails to timely provide her counsel with a certified check to cover the restitution payments to former customers listed in Attachment A, or if Respondent, or her counsel, fail to deliver the restitution checks to CSD for mailing to the former customers listed in Attachment A.

This proceeding will remain open for 45 days after the date of the Commission's adoption of this decision. The proceeding will close after that time unless CSD has filed a report with the assigned ALJ pursuant to Section 2.4., which indicates that Respondent has failed to make the required restitution payments to former customers listed in Attachment A, or has otherwise not complied with the settlement, and the assigned ALJ has set further proceedings by ruling. After this proceeding is closed, CSD may request the reopening of this proceeding to impose fines and penalties if Respondent breaches a material provision of the settlement, such as failing to pay restitution to the former customers listed in Attachment B, or violates a statute, or a Commission rule or regulation.

CSD has agreed not to request the imposition of fines or penalties at this time, and not to initiate law enforcement proceedings against Respondent based on the charges against her in this proceeding. However, CSD may cooperate with law enforcement authorities and provide information to the extent requested.³