In the Matter of the Complaint Against ) February 9, 1994 ) RAUL D. VILLEGAS ) 3100 Jane Place, N.E., Apt. L-202 ) ) at ) ) Albuquerque, NM 87111-5107 ) P. S. Docket No. PF-66 APPEARANCE FOR THE POSTAL SERVICE: Geoffrey A. Drucker, Esq. Enforcement Division United States Postal Service Washington, DC 20260-1148 APPEARANCE FOR RESPONDENT: None.
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 via certified mail to Raul D. Villegas ("Respondent") at 3100 Jane Place, N.E., Apt. L-202, Albuquerque, NM 87111-5107, on December 15, 1993. Respondent acknowledged receipt of the Complaint on December 20, 1993, by signing a delivery receipt (P.S. Form 3849). To date, Respondent has failed to file a Hearing Petition as required by 39 C.F.R. §962.3.
By order dated January 31, 1994, the Judicial Officer referred the Complaint to the Acting Chief 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 twice the total amount of the false claims, plus a civil penalty in the amount of $55,000 ($2,500 for each of the twenty-two false claims) under 31 U.S.C. §3802 (a)(1).
In accordance with 39 C.F.R. §962.4(a), this Initial Decision is based upon the information contained in the Complaint.
1. Postal money orders are sold at United States Postal Service post offices and at contract post offices. The procedures for selling money orders are essentially the same at both types of facilities.
2. Postal money orders come in triplicate: The top portion is the customer's receipt, the middle portion is the money order itself, and the bottom portion is the voucher. All three portions bear the same serial number.
3. When a postal clerk sells a money order, the proper procedure is for the clerk to imprint the date of issuance, the identification code of the issuing office, and the dollar amount on all three portions. After receiving proper payment, the clerk is required to hand the money order and receipt to the customer and retain the voucher.
4. The voucher is forwarded to the Postal Data Center ("PDC") in St. Louis, Missouri. When the money order is cashed, the middle, or money order portion, is also routed to the PDC. If the amounts of the voucher and the money order for a particular serial number do not match, the PDC issues an alert.
5. On January 22, 1991, Respondent purchased a contract post office known as Pack and Mail, located at 4201 Central Avenue, N.W., Albuquerque, New Mexico. On August 15, 1991, Respondent sold Pack and Mail to another individual, but he continued to work there as a volunteer.
1. On June 4, 1991, Respondent separated money order number 4,446,781,442 from the corresponding voucher and imprinted $700 on the money order portion as its dollar value. Respondent imprinted $0.00 on the voucher as the amount of the money order and deposited nothing in payment for the money order. Respondent cashed money order number 4,446,781,442 and received $700 from the Postal Service. Money order number 4,446,781,442 constitutes a false claim for the difference between the amount of the money order and the amount of the voucher, which is $700.
2. On August 7, 1991, Respondent separated money order number 4,446,922,558 from the corresponding voucher and imprinted $300 on the money order portion as its dollar value. Respondent imprinted $0.00 on the voucher and deposited nothing in payment for the money order. Respondent cashed money order number 4,446,922,558 and received $300 from the Postal Service. Money order number 4,446,922,558 constitutes a false claim for the difference between the amount of the money order and the amount of the voucher, which is $300.
3. On September 3, 1991, Respondent separated money order number 4,433,327,359 from its corresponding voucher and imprinted $700 on the money order portion as its dollar value. Respondent imprinted $0.00 on the voucher as the amount of the money order and deposited nothing in payment for the money order. Respondent cashed money order number 4,433,327,359 and received $700 from the Postal Service. Money order number 4,443,327,359 constitutes a false claim for the difference between the amount of the money order and the amount of the voucher, which is $700.
4. On September 3, 1991, Respondent separated money order number 4,433,384,219 from the corresponding voucher and imprinted $669 on the money order portion as its dollar value. Respondent imprinted $69 on the voucher as the amount of the money order and deposited only $69 in payment for the money order. Respondent cashed money order number 4,433,384,219 and received $669 from the Postal Service. Money order number 4,433,384,219 constitutes a false claim for the difference between the amount of the money order and the amount of the voucher, which is $600.
5. On September 14, 1991, Respondent separated money order number 4,433,384,227 from the corresponding voucher and imprinted $700 on the money order portion as its dollar value. Respondent imprinted $5 on the voucher as the amount of the money order and deposited only $5 in payment for the money order. Respondent cashed money order number 4,433,384,227 and received $700 from the Postal Service. Money order number 4,433,384,227 constitutes a false claim for the difference between the amount of the money order and the amount of the voucher, which is $695.
6. On September 16, 1991, Respondent separated money order number 4,433,384,234 from the corresponding voucher and imprinted $413 on the money order portion as its dollar value. Respondent imprinted $13 as the amount of the money order on the voucher and deposited only $13 in payment for the money order. Respondent cashed money order number 4,433,384,234 and received $413 from the Postal Service. Money order number 4,433,384,234 constitutes a false claim for the difference between the amount of the money order and the amount of the voucher, which is $400.
7. On September 16, 1991, Respondent separated money order number 4,433,384,235 from the corresponding voucher and imprinted $667 on the money order portion as its dollar value. Respondent imprinted $67 on the voucher as the amount of the money order and deposited only $67 in payment for the money order. Respondent cashed money order number 4,433,384,235 and received $667 from the Postal Service. Money order number 4,433,384,235 constitutes a false claim for the difference between the amount of the money order and the amount of the voucher, which is $600.
8. On September 20, 1991, Respondent separated money order number 4,433,384,266 from the corresponding voucher and imprinted $665 on the money order portion as its dollar value. Respondent imprinted $5 on the voucher as the amount of the money order and deposited only $5 in payment for the money order. Respondent cashed money order number 4,433,384,266 and received $665 from the Postal Service. Money order number 4,433,384,266 constitutes a false claim for the difference between the amount of the money order and the amount of the voucher, which is $660.
9. On September 25, 1991, Respondent separated money order number 4,433,384,318 from the corresponding voucher and imprinted $665.67 on the money order portion as its dollar value. Respondent imprinted $5.67 on the voucher as the amount of the money order and deposited only $5.67 in payment for the money order. Respondent cashed money order number 4,433,384,318 and received $665.67 from the Postal Service. Money order number 4,433,384,318 constitutes a false claim for the difference between the amount of the money order and the amount of the voucher, which is $660.
10. On October 1, 1991, Respondent separated money order number 4,433,384,367 from the corresponding voucher and imprinted $687.81 on the money order portion as its dollar value. Respondent imprinted $7.81 on the voucher as the amount on the money order and deposited only $7.81 in payment for the money order. Respondent cashed money order number 4,433,384,367 and received $687.81 from the Postal Service. Money order number 4,433,384,367 constitutes a false claim for the difference between the amount of the money order and the amount of the voucher, which is $680.
11. On October 1, 1991, Respondent separated money order number 4,433,384,368 from the corresponding voucher and imprinted $614.63 on the money order portion as its dollar value. Respondent imprinted $14.63 as the amount of the money order on the voucher and deposited only $14.63 in payment for the money order. Respondent cashed money order number 4,433,384,368 and received $614.63 from the Postal Service. Money order number 4,433,384,368 constitutes a false claim for the difference between the amount of the money order and the amount of the voucher, which is $600.
12. On October 13, 1991, Respondent separated money order number 4,446,976,052 from the corresponding voucher and imprinted $677.96 on the money order portion as its dollar value. Respondent imprinted $9.96 on the voucher as the amount of the money order and deposited only $9.96 in payment for the money order. Respondent cashed money order number 4,446,967,052 and received $677.96 from the Postal Service. Money order number 4,446,976,052 constitutes a false claim for the difference between the amount of the money order and the amount of the voucher, which is $668.
13. On October 15, 1991, Respondent separated money order number 4,447,002,041 from the corresponding voucher and imprinted $685 on the money order portion as its dollar value. Respondent imprinted $0.00 on the voucher as the amount of the money order and deposited nothing in payment for the money order. Respondent cashed money order number 4,447,002,041 and received $685 from the Postal Service. Money order number 4,447,002,041 constitutes a false claim for the difference between the amount of the money order and the amount of the voucher, which is $685.
14. On October 14, 1991, Respondent separated money order number 4,447,002,037 from the corresponding voucher and imprinted $682.75 on the money order portion as its dollar value. Respondent imprinted $2.75 on the voucher and deposited only $2.75 in payment for the money order. Respondent cashed money order number 4,447,002,037 and received $682.75 from the Postal Service. Money order number 4,447,002,037 constitutes a false claim for the difference between the amount of the money order and the amount of the voucher, which is $680.
15. On October 16, 1991, Respondent separated money order number 4,433,458,345 from the corresponding voucher and imprinted $610 on the money order portion as its dollar value. Respondent imprinted $10 on the voucher as the amount of the money order and deposited only $10 in payment for the money order. Respondent cashed money order number 4,433,458,345 and received $610 from the Postal Service. Money order number 4,433,458,345 constitutes a false claim for the difference between the amount of the money order and the amount of the voucher, which is $600.
16. On October 18, 1991, Respondent separated money order number 4,433,458,396 from the corresponding voucher and imprinted $610 on the money order portion as its dollar value. Respondent imprinted $10 on the voucher as the amount of the money order and deposited only $10 in payment for the money order. Respondent cashed money order number 4,433,458,396 and received $610 from the Postal Service. Money order number 4,433,458,396 constitutes a false claim for the difference between the amount of the money order and the amount of the voucher, which is $600.
17. On October 18, 1991, Respondent separated money order number 4,433,458,397 from the corresponding voucher and imprinted $610 on the money order portion as its dollar value. Respondent imprinted $10 on the voucher as the amount of the money order and deposited only $10 in payment for the money order. Respondent cashed money order number 4,433, 458,397 and received $610 from the Postal Service. Money order number 4,433,458,397 constitutes a false claim for the difference between the amount of the money order and the amount of the voucher, which is $600.
18. On October 18, 1991, Respondent separated money order number 4,433,458,398 from the corresponding voucher and imprinted $610 on the money order portion as its dollar value. Respondent imprinted $10 on the voucher as the amount of the money order and deposited only $10 in payment for the money order. Respondent cashed money order number 4,433,458,398 and received $610 from the Postal Service. Money order number 4,433,458,398 constitutes a false claim for the difference between the amount of the money order and the amount of the voucher, which is $600.
19. On October 18, 1991, Respondent separated money order number 4,433,458,399 from the corresponding voucher and imprinted $610 on the money order portion as its dollar value. Respondent imprinted $10 on the voucher as the amount of the money order and deposited only $10 in payment for the money order. Respondent cashed money order number 4,433,458,399 and received $610 from the Postal Service. Money order number 4,433,458,399 constitutes a false claim for the difference between the amount of the money order and the amount of the voucher, which is $600.
20. On October 24, 1991, Respondent separated money order number 4,433,489,202 from the corresponding voucher and imprinted $689.50 on the money order portion as its dollar value. Respondent imprinted $9.50 on the voucher as the amount of the money order and deposited only $9.50 in payment for the money order. Respondent cashed money order number 4,433,489,202 and received $689.50 from the Postal Service. Money order number 4,433,489,202 constitutes a false claim for the difference between the amount of the money order and the amount of the voucher, which is $680.
21. On October 24,1991, Respondent separated money order number 4,433,489,206 from the corresponding voucher and imprinted $682.23 on the money order portion as its dollar value. Respondent imprinted $2.23 on the voucher as the amount of the money order and deposited only $2.23 in payment for the money order. Respondent cashed money order number 4,433,489,206 and received $682.23 from the Postal Service. Money order number 4,433,489,206 constitutes a false claim for the difference between the amount of the money order and the amount of the voucher, which is $680.
22. On October 29, 1991, Respondent separated money order number 4,433,489,235 from the corresponding voucher and imprinted $682.34 on the money order portion as its dollar value. Respondent imprinted $2.34 on the voucher as the amount of the money order and deposited only $2.34 in payment for the money order. Respondent cashed money order number 4,433,489,235 and received $682.34 from the Postal Service. Money order number 4,433,489,235 constitutes a false claim for the difference between the amount of the money order and the amount of the voucher, which is $680.
1. Respondent falsified the dollar amounts on twenty-two postal money orders during the period from June 4 to October 29, 1991. Each of the twenty-two money orders that he submitted for payment constitutes a false claim for the difference between what Respondent paid for the money order and what he claimed as payment from the Postal Service. Each falsified money order constitutes a "claim" for money within the meaning of 31 U.S.C. §3801(a)(3).
The false claims ranged in amount from $300 to $700. The total amount of the twenty-two false claims submitted by Respondent and paid by the Postal Service is $13,668.
2. The next issue is whether Respondent is subject to a civil penalty under 31 U.S.C. §3802(a)(1) for each of the twenty-two false claims he made. Respondent submitted twenty-two postal money orders to the Postal Service, claiming payment for amounts higher than the amounts, if any, that he paid to purchase them. Respondent knew or had reason to know that the money orders were false claims for payment, since he altered the money orders as stated above. Under these circumstances, Respondent is subject to, in addition to any other remedy that may be prescribed by law, a civil penalty of not more than $5,000 for each false claim. The Reviewing Official has requested a
penalty of only $2,500 for each claim. The requested civil penalty amounts to a total of $55,000 for the false claims found.
Since Respondent has failed to file a Petition in opposition to the Complaint, the allegation of liability for a $55,000 penalty is deemed admitted. See 39 C.F.R. §962.4(a) and §962.15(a)(2) and (d).
3. The next issue is the amount of the assessment to be imposed upon Respondent under 31 U.S.C. §3802(a)(1). The statute provides, in pertinent part, that a person making false claims, as defined therein, shall be subject to an assessment in lieu of damages sustained by the United States because of such claims, of not more than twice the amount of such claims. The Reviewing Official in this case has requested an assessment equal to twice the amount of the false claims. The false claims totalled $13,668 and the Reviewing Official has requested an assessment of $27,336.
5. I conclude that Respondent is liable to the Postal Service under 31 U.S.C. §3802(a)(1) for a civil penalty of $55,000, plus an assessment of $27,336.
Judith A. Dowd Acting Chief Administrative Law Judge