In the Matter of the Complaint Against ) September 26, 1994 ) STEPHEN M. GOLDWAITE ) 7 Haven Lane ) ) at ) ) Wayland, MA 01778-5105 ) P.S. Docket No. PF 94-141 APPEARANCE FOR RESPONDENT: None. APPEARANCE FOR POSTAL SERVICE: Elizabeth P. Martin, Esq. Enforcement Division United States Postal Service Washington, DC 20260-1148
INITIAL DECISION
This proceeding arises out of a Complaint issued by the Reviewing Official of the United States Postal Service under the Program Fraud Civil Remedies Act of 1986, Pub. L. 99-509, 31 U.S.C. §§3801-3812, and 39 C.F.R. Parts 273 and 962. The Complaint was sent by certified mail to Stephen Goldwaite (Respondent) at the above address on August 9, 1994. On August 10, 1994 someone (signature unintelligible) signed as Addressee and returned the receipt (PS Form 3811). To date, Respondent has failed to file a Petition for Hearing as required by 39 C.F.R. §962.3.
On September 15, 1994, the Postal Service moved for Judgment on the Merits and, by Order dated September 16, 1994, the Judicial Officer referred the Complaint to the undersigned Administrative Law Judge for processing in accordance with 39 C.F.R. §962.4.
In the Complaint, the Reviewing Official alleged that Respondent is liable to the Postal Service for an assessment equal to the amount of forty-six false claims (total - $8,749.65), and a civil penalty of $4,600 ($100 per false claim) under 31 U.S.C. §3802(a)(1).
In accordance with 39 C.F.R. §962.4(a), this Initial Decision is based on the information contained in the Complaint.
FINDINGS OF FACT
1. Respondent Stephen M. Goldwaite is an individual residing at 7 Haven Lane, Wayland, Massachusetts 01778-5105.
2. Effective June 12, 1989, Mr. Goldwaite obtained a services contract (Contract No. 249990-89P-0209) to clean the Cochituate Station postal facility in Wayland. For this service, Mr. Goldwaite received biweekly payments of $192.30.
3. By letter dated September 6, 1990, Mr. Goldwaite terminated this contract, effective September 15, 1990.
4. Nevertheless, the Postal Service continued to send Mr. Goldwaite a check for $192.30 every two weeks, from September 28, 1990 through June 19, 1992, and Mr. Goldwaite negotiated each of them - a total of forty-six checks, resulting in a loss to Complainant of $8,749.65.(1)
5. Mr. Goldwaite knew when he, or someone acting in his behalf, negotiated these checks, whether for deposit or cash, that he was not entitled to the proceeds.
CONCLUSIONS OF LAW
1. The definition of a "claim" under the Program Fraud Civil Remedies Act includes, " ... any request, demand, or submission - ... made to an authority for ... money ... ." 31 U.S.C. §3801(a)(3).
2. Endorsement and deposit, or presentation for cash, of a government check known to have been issued by mistake constitutes the presentation of a false claim. United States v. McLeod, 721 F.2d 282 (9th Cir. 1983); United States v. Scolnick, 331 F.2d 598 (1st Cir. 1964); see also Nancy M. Williams, P.S. Docket No. PF-21 (I.D. at 13-14).
3. Each of the forty-six checks erroneously issued to Mr. Goldwaite, and subsequently negotiated by him, constitutes a separate claim, in violation of 31 U.S.C. §3802(a)(1).
4. The Statute (§3802(a)(1)) calls for a maximum penalty of $5000 per false claim, and an assessment of up to twice the amount of the claim.
5. The Reviewing Official has requested a $100 penalty for each claim, for a total of $4,600. Because Respondent has failed to file a Petition in opposition to the Complaint, the allegation of liability for a penalty of $4,600 is deemed to be admitted. 39 C.F.R. §962.4(a) and §962.15(a)(2) and (d).
6. The Reviewing Official has requested an assessment equal to the amount of the claims - $8,749.65. Liability for this assessment is likewise deemed to be admitted.
7. On review of all the facts and circumstances, as presented in the Complaint, I find the requested penalty and assessment to be appropriate. Respondent is liable to the Postal Service under 31 U.S.C. §3802(a((1) for a total amount of $13, 349.65.
Bruce R. Houston Administrative Law Judge