In the Matter of the Complaint Against WORLDWIDE PROMOTIONS CORPORATION, a corporation, KEVIN J. THOREN, individually and as President of said corporation P. O. Box 8013 at Des Moines, IA 50301-8013 P.S. Docket No. 20/31; 07/25/86 Cohen, James A. APPEARANCES FOR COMPLAINANT: H. Richard Hefner, Esq. Timothy J. Kruthaupt, Esq. Consumer Protection Division Law Department United States Postal Service Washington, DC 20260-1112 APPEARANCE FOR RESPONDENT: Ralph R. Brown, Esq. P. O. Box 250 Dallas Center, IA 50063-0250
Complainant has filed an appeal from an Initial Decision of an Administrative Law Judge dismissing its Complaint against Respondent Kevin J. Thoren. Complainant contends that the Administrative Law Judge improperly weighed the evidence and erroneously concluded that the evidence did not establish that Respondent Thoren was engaged in the scheme alleged in the Complaint.
In a prior proceeding initiated by Complainant, Worldwide Promotions, P.S. Docket No. 19/85, Kevin J. Thoren executed a Consent Agreement in which he agreed to permanently discontinue representing that Worldwide would provide to customers a five foot Bently Grandfather clock, with a value of $249.00. The Consent Agreement was dated and became effective on April 17, l984. As the result of the execution of the Consent Agreement, P.S. Docket No. 19/85 was suspended indefinitely.
On November 16, l984, this proceeding was initiated by the filing of a Complaint against both Worldwide Promotions Corporation and Kevin J. Thoren. The Complaint alleged that by means of promotional materials distributed in connection with the sale of coupon books, Respondents falsely represented they would provide to customers "a five foot Bently Grandfather clock, with a value of $249.00." Worldwide Promotions Corporation did not file an Answer to the Complaint and was found to be in default.
Respondent Thoren filed an Answer to the Complaint in which he denied that he made the alleged mispresentation. As an affirmative defense, Respondent Thoren asserted that he had complied with the terms of the Consent Agreement entered into in P.S. Docket No. 19/85 and that as of August 6, l984, he had severed his relationship with Worldwide Promotions Corporation.
Following a hearing and the filing of proposed findings of fact and conclusions of law, the Administrative Law Judge issued his Initial Decision in which he concluded that Complainant had not sustained its burden of proving that Respondent Thoren was engaged in the scheme alleged in the Complaint subsequent to the execution of the Consent Agreement in P.S. Docket No. 19/85. Complainant takes issue with this conclusion and Findings of Fact 1, 3, 4 & 5 on which this conclusion is based.
The entire record has been reviewed. While there is some evidence to support the position advanced by Complainant, a preponderance of the evidence supports the findings and conclusions of the Administrative Law Judge. Neither the evidence relating to the use of Respondent Thoren's telephone number, nor the company's use of a facsimile of his signature on checks they issued, persuasively contradicts his testimony regarding his termination of his relationship with the company (Tr. 120-157). Moreover, the testimony of Mr. Thoren is supported by the testimony of a former employee of Worldwide Promotions Corporation (Tr. 157-166). The testimony of these two witnesses is also persuasive that the promotional materials used subsequent to the execution of the Consent Agreement were revised to delete any reference to the value of the clocks and, to the extent possible, were substituted for the old promotional materials which had been distributed to promoters around the country. The evidence regarding complaints received by the Postal Service does not persuasively contradict this testimony. Finally, the isolated instances of distribution of the old promotional materials, despite efforts to remove them from circulation, are insufficient to invoke the sanctions of 39 U.S.C. § 3005.
Accordingly, Complainant's appeal is denied and the dismissal of the Complaint as it pertains to Respondent Thoren is affirmed.