In the Matter of the Complaint Against: CLARENCE LYONS, Apt. 201, 816 New Hampshire Avenue, N.W., Washington, DC 20009-3239 P.S. Docket No. PF-13 03/29/91 Grant, Quentin E. Chief Administrative Law Judge APPEARANCE FOR POSTAL SERVICE: Joseph F. Wackerman, Esq., Office of Postal Rates and Mailing Rules, United States Postal Service, Washington, DC 20260-1141 APPEARANCE FOR RESPONDENT: None
1. Respondent is Clarence Lyons, an individual whose address, according to information provided by the Postal Inspection Service since the filing of the complaint, is 222 11th St. N.E., Washington, D.C., 20002-6218. Mr. Lyons is also known as Clarence Lyons, Jr., and his social security number is (redacted). Mr. Lyons is a director, president, and sole operator of Lyons Associated Enterprises, Inc. (Associated Enterprises), which is incorporated under the laws of the District of Columbia. The address of Associated Enterprises from the date of its incorporation was 1420 N Street, N.W., Suite 514, Washington, D.C., 20005, which was also Mr. Lyon's residential address.
2. On August 16, 1988, Respondent purchased $2900 in postage stamps from a U.S. Postal Service window clerk at the National Capital Station Post Office, 2 Massachusetts Ave., Washington, D.C., 20002-9998. In payment for the stamps, Mr. Lyons submitted a check signed by him and drawn on the account of Associated Enterprises at the NS&T Bank of Washington, D.C., in the amount of $2,900. (NS&T Bank merged with United Virginia Bank in l986, but kept its original name until the fall of l987, when it became known as Crestar Bank, N.A.)
3. Along with the check, Mr. Lyons gave the window clerk two pieces of identification, a District of Columbia driver's permit and a birth certificate issued by the State of Georgia. The window clerk recorded identifying information from these documents on the reverse of the check.
4. After giving Mr. Lyons the requested postage stamps, the Postal Service caused the check to be presented for payment at the NS&T Bank, which returned it to the Postal Service uncollected and endorsed "Account Closed."
5. The Associated Enterprises account upon which the check was drawn had been opened on August 21, 1987. Respondent, in his capacity as president of the corporation, was the only individual authorized to sign checks, drafts, or other orders on this account.
6. Beginning on or about June 3, l988, the account had a negative balance, of which the bank notified Respondent and Associated Enterprises by a bank statement dated June 30, l988. On July 20, l988, the bank closed the account and mailed a final statement, which included notice that the account had been closed, to Associated Enterprises at Respondent's address.
7. The Postal Service made several requests for payment on the dishonored check to Mr. Lyons, specifically on August 25 and 31 and September 7 and l7 of l988. In addition, on October l2, l988, Mr. R.D. Taplett, Director of Finance for the Washington, D.C. post office, sent Mr. Lyons, by certified mail, a letter of demand for payment. A duplicate of the letter was sent to Mr. Lyons on December 1, 1988.
8. On December 28, l989, Postal Inspectors interviewed Mr. Lyons. At the interview, Mr. Lyons reviewed the check, identified the drawer's signature on the check as his own, and admitted he had personally submitted the check to the Postal Service to buy postage stamps. He stated that he is the sole operator of Associated Enterprises, which was established in the District of Columbia to operate a catalog company for women's clothing. He described the other parties listed in the incorporation papers as individuals who had made no financial investment nor provided any services to the business. Mr. Lyons stated that he used the stamps for an Associated Enterprises mailing to members of the public. During the interview Mr. Lyons admitted that he had received telephone calls from the Postal Service concerning the check, acknowledged that he owed the Postal Service $2,900 (the amount of the check), and said he would repay this amount by certified check on February l, l990.
9. Mr. Lyons failed to make the February l payment. Thereafter, on February 5, Mr. Lyons spoke to a Postal Inspector and promised to present a certified check later that day. However, he did not appear, and the amount of $2,900 remains unpaid.
The Program Fraud Civil Penalties Act of l986 was enacted to provide Federal agencies which are the victims of false, fictitious, and fraudulent claims and statements in Government programs with an administrative remedy to recompense them for losses resulting from such claims and statements. Its enactment was based on Congressional findings that such claims and statements in Government programs are a serious problem, resulting in the loss of millions of dollars annually received by persons not entitled thereto, and undermining the integrity of such programs by allowing ineligible persons to participate in such programs. Pub. L. 99-509, Section 6102. Typical of the programs which the Act is intended to serve are benefit and assistance programs such as food stamps, welfare, student loans, mortgage insurance, crop subsidies, disaster relief and federal procurement. S. Rep. No. 212, 99th Cong., lst Sess. 2 (l985). There is no indication that the sale of stamps by the Postal Service is a "program" which the Act is intended to cover. Further, the Act defines a "claim" as a request, demand, or submission such as a voucher, invoice, claim form, or other request or demand for property, services, or money (3l U.S.C. § 3801(a)(3) and (b)(1). The bad check and supporting identification given by Respondent do not appear to be a request, demand or submission and, therefore, a "claim" to which the Act applies.
The complaint fails to allege and establish a false, fictitious or fraudulent claim within the scope of the Program Fraud Civil Remedies Act. Therefore, the requested order imposing an assessment and penalty may not be granted.
The proceeding is dismissed.