United States Postal Service(TM)


 P.S. Docket No. 34/151

 09/14/89

 Grant, Quentin E., Chief Administrative Law Judge

 APPEARANCE FOR COMPLAINANT: Jerry Belenker, Esq.,
 Consumer Protection Division, Law Department,
 United States Postal Service, Washington, DC 20260-1114 

 APPEARANCE FOR RESPONDENT: Harland Jahnke, Pro Se,
 3400 W.  111th St., Suite 333, Chicago, IL 60655-3330

ORDER ON MOTION TO AMEND COMPLAINT

and

INITIAL DECISION ON COMPLAINANT'S MOTION FOR JUDGMENT ON THE PLEADINGS

On August 4, 1989, Complainant filed motions to amend the complaint and for judgment on the pleadings. By order dated August 8, 1989 (received by respondent on August 11, 1989), respondent was directed to file written opposition to these motions by August 18. To date such opposition has not been filed.

ORDER ON MOTION TO AMEND COMPLAINT

The motion to amend requests changing the name Harold Janke in the complaint and the proposed orders attached thereto to Harland Jahnke, corresponding with respondent's signature on his answer to the complaint.

The motion is granted.

INITIAL DECISION

The complaint, docketed July 10, 1989, alleges that respondent is engaged in a scheme or device to obtain money or property through the mail by means of false representations in violation of 39 U.S.C. § 3005. Specifically, the complaint alleges that utilizing direct mail circulars containing the following materially false representations, Respondent, d/b/a Advanced Systems, seeks remittances of money through the mail to 3400 W. 111th St., Suite 333, Chicago, IL 60655-3330:

"(a) In return for a service fee of $98.00, Respondent will secure an interest-free cash grant in the amount of $25,000.00, $50,000.00 or $75,000.00 for applicant;

(b) Said cash grants are a tax write off for the institutions providing them;

(c) Respondent has sources of grant associations and financial organizations who will issue said grants to any applicant who remits the fee to Respondent regardless of credit history and length of employment; and

(d) Respondent has sources who will make grants to applicants virtually upon demand or upon the mere completion of an application."

Respondent's answer to the complaint fails to deny any of the allegations contained therein. It simply states that Respondent has ceased doing business as of June 1989, that no applicant has been financially hurt, that refunds have been made whenever requested, and that respondent is in the process of reorganizing his business.

Complainant's motion for judgment on the pleadings cites § 952.10(b) the rules of practice which provides that any facts alleged in the complaint which are not denied (or are expressly admitted) in the answer may be considered as proved. Applying this rule to Respondent's answer, Complainant has, in effect, proved all the factual allegations asserted in the complaint.

The proposed mail stop order attached to the complaint is for use in lottery violations of 39 U.S.C. § 3005. This is an obvious oversight correction of which will not prejudice Respondent under the circumstances present here. Accordingly, the complaint is deemed amended to include a proposed mail stop order in the form appropriate for use in false representation cases.

FINDINGS OF FACT

1. Respondent, Harold Jahnke, is an individual using the name Advanced Systems to solicit money or property through the mail to the address of 3400 W. 111th St., Suite 333, Chicago, IL 60655-3330.

2. Respondent utilizes a direct mail circular seeking the remittance of money through the mail to Respondent in return for securing interest-free cash grants ranging from $2,000 to $100,000.

3. By means of such circulars Respondent represents, directly or indirectly, in substance and effect, whether by affirmative statements, implications or omissions the representations set forth above.

4. Such representations are materially false as a matter of fact.

CONCLUSIONS OF LAW

1. Respondent is engaged in a scheme or device to obtain money or property through the mail by means of false representations in violation of 39 U.S.C. § 3005.

2. The attached proposed orders should be issued against Respondent.