In the Matter of the Complaint Against DONALD RAY MOORE d/b/a BUSINESS OPPORTUNITY CLUB 426 West Avenue at Troutman, NC 28166-9641 P.S. Docket No. 22/10; 10/24/86 Cohen, James A. APPEARANCE FOR COMPLAINANT: H. Richard Hefner, Esq. W. Gary Claytor, Esq. Consumer Protection Division Law Department United States Postal Service Washington, DC 20260-1112 APPEARANCE FOR RESPONDENT: Donald R. Moore President Business Opportunity Club 1107 Crawford Road Statesville, NC 28677-8503
On September 24, 1986, Complainant filed a Petition alleging that Respondent has breached the terms of an Agreement Containing Consent Order to Cease and Desist (hereinafter the Agreement) executed on August 5, 1985. In the Petition, Complainant contends Respondent is conducting a scheme substantially similar to the one he agreed would be permanently discontinued and not resumed by any means under any name or through any corporate or other device. The scheme which Complainant contends Respondent has resumed is a business opportunity club promoted by advertising materials making representations which are the same or substantially the same as those Respondent agreed to discontinue. Complainant contends Respondent conducts the resumed activities at the captioned address and at 1107 Crawford Road, Statesville, North Carolina 28677.
On the basis of the information attached to the Petition, an Interim Detention Order as provided in paragraph 6 of the Agreement was issued against Respondent on September 25, 1986. The Interim Detention Order granted Respondent a period of ten days in which to file a reply. On September 29, l986, Respondent filed a reply to the Petition in which he denied that he has violated the terms of the Agreement. Respondent attached to his reply samples of "up-dated" promotional materials which are not the subject of the allegations in the Petition.
Respondent has not rebutted the prima facie case of breach of the Agreement established by Complainant in the attachments to the Petition. By the terms of the Agreement, Respondent agreed to discontinue making the following representations either directly or indirectly:
"(a) Respondent will furnish low interest loans and grants in the amount of $10,000 to $1 million in one lump sum to every member of its Money Program.
(b) Members in Respondent's program are assured of receiving substantial sums of money.
(c) The amount of money a member will receive is dependent upon the desires of that member."
Subsequent to the execution of the Agreement, Respondent distributed advertising which repeated the claims challenged in the Complaint (Pet. Exh. 3). Respondent also used advertising which eliminated the reference to "low interest loans and grants" but in all other respects was substantially similar in text and import to his original advertisements (Pet. Exhs. 4 & 9). Thus, after execution of the Agreement and contrary to its terms Respondent continued to make all of the representations alleged in the Complaint. Respondent has therefore breached the terms of the Agreement in the manner alleged in the Petition.
While Respondent presents arguments concerning the wording of the Agreement and oral representations concerning its meaning, the clear and unambiguous language used prohibits the use of the representations made in the promotional materials attached to the Petition. Therefore, it is unnecessary to rule on Respondent's arguments addressed to other issues or to decide whether promotional materials other than those challenged in the Petition are in compliance with the Agreement.
Accordingly, an order of the type described in 39 U.S.C. § 3005(a)(l) and (2) are issued herewith.