William A. Herman

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In roe Marrer or WILLIAM A. HERMAN COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SECTION 5 OF AN ACT OF CONGRDSS APPROVED SEPT. 26, 1914 Docket 5225. Complaint, Sept. 26, 1944—Decision, Dec. 5, 1946 Where an individual engaged as a licensed private detective and investigator, principally in obtaining information concerning persons who had, or represented themselves as having, claims against insurance companies or employers in connection with industrial insurance and workmen’s compensation laws; i Making use of a plan under which he mailed to persons concerning whom information was sought, at their last known addresses, form letters which, headed “National Estates Research,” and displaying at the top “Worldwide Genealogical Service,” “File # __--,” “—---_- Estate,” advised the addressee that his address had been learned in the course of endeavors to locate heirs to the supposed estate and asked him to advise where he might be interviewed in order to ascertain his connection with such estate, or to return the letter filled in to supply a variety of information concerning himself, such as his address, occupation, ete., and included stamped envelopes for the return of such form letters addressed to said “National Hstates Research” at his New York City address— (a) Represented falsely, directly and by implication, through said form letters, to the recipients thereof, that “National Hstates Research” was engaged in genealogical research and was endeavoring to locate heirs to existing estates, and that the recipients might have interests in such estates of financial benefit to them; and (bo) Represented falsely, through use of the name “National Hstates Research,” directly and by implication, that said concern bore some relation to estates and to the right and interest of heirs thereto; The facts being aforesaid name was merely a disguise for the true nature of his business, and the whole plan was one for obtaining information by deceit and subterfuge;

With the effect of misleading and deceiving many of the persons to whom said form letters were sent, into the erroneous belief that such representations were true and that the name “National Estates Research” truthfully indicated the character of the concern requesting information; and with tendency and capacity thereby to cause such persons to give information which they otherwise would not have supplied:

Held, That such acts and practices under the circumstances set forth were all to the prejudice and injury of the public and constituted unfair and deceptive acts and practices.

Before Mr. Andrew B. Duvall, trial examiner.

Mr. J. W. Brookfield, Jr., for the Commission. Mr. Abraham E. Glick, of New York City, for respondent. WILLIAM A. HERMAN 275 274 Complaint Complaint Pursuant to the provisions of the Federal Trade Commission Act, and by virtue of the authority vested in it by said act, the Redes Trade Commission, having reason to believe that Retire A. Herman, an individual, hereumetter referred to as respondent, has violated the provisions of said Act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues its complaint, stating its charges in that respect as follows: Paracraru 1. Respondent William A. Herman is an individual with an office and principal place of business at 170 Broadway, city and State of New York.

Par. 2. Respondent is now, and has been for more than 1 year last past engaged in business as a private detective and investigator under the name “Equitable Service Bureau” in the State of New York, under a license issued by that State. The principal part of respondent’s business in the investigation of, and obtaining information concerning, persons who have, or roeeeatais themselves as having, claims directly against insurance ciipimiens or against others who, in many instances, are insured against such claims, and in others are not so insured. Suck investigations principally relate to claimants under so-calledsifidus: trial insurance or under so-called workmen’s compensation laws.) Re: spondent’s business as a whole also includes investigations into civil; criminal, general insurance and commercial situations where frau may be involved. Respondent’s business is the obtaining’for thos. who employ him for compensation, of information concerning others, which will be of value to his clients. : Par. 3. Certain of respondent’s clients cause goods and other property to be transported from their respective places of business to purchasers thereof in other States of the United States, and maintain, and at all times mentioned herein have maintained, courses of trade in such goods and property in commerce between and among the various States _ of the United States. Other of respondent’s clients are engaged in the business of insurance, which they regularly carry on in commerce between. and among various States of the United States. Some of respondent’s clients are located in the State of New York and others are located in other States of the United States. The course and conduct of respondent’s said business involves intercourse of a commercial and business nature between him and his clients, and the persons from whom information is sought, who are located in States other than the State of New York.

- Par. 4. In the course and conduct of respondent’s said business of obtaining information concerning other persons, respondent uses certain form letters, substantially in the form exemplified bya copy 734584—49—-yol. 4821 Complaint 43 F. T. C. hereof, marked “Exhibit A,” attached hereto and by this reference incorporated herein and made a part hereof.

~ Par. 5. Respondent causes the form letters exemplified by Exhibit A to be mailed to the persons concerning whom information is sought at their last-known addresses, together with stamped envelopes addressed to National Estates Research at respondent’s New York City address, for the return of the said form letters. Many of the persons to whom the said form letters and return envelopes are sent are located in States other than the State of New York.

Par. 6. National Estates Research conducts no business of any kind, and is merely a trade name registered by respondent in the city of New York and used by him. Such of the form letters as are filled out and mailed by the recipients thereof are received by respondent, and the information so obtained used by him in such manner as he deems expedient in obtaining the information desired by his client. Par. 7. By means of the said form letters and envelopes respondent has represented, directly and by implication, to the recipients thereof, that National Estates Research is engaged in genealogical research and is endeavoring to locate heirs to existing estates, and that the recipients may have interests in such estate which may be of financial benefit to them.

The said representations are false and misleading. In truth and in fact respondent, in conducting National Estates Research, is not engaged in genealogical research. He is not endeavoring to locate heirs to any estates, nor has he any knowledge of any interest in any estates to which the persons concerning whom he is seeking information ma be entitled. vf! Par. 8. Through the use of the name “National Estates Service” respondent has represented, directly and by implication, that the said concern bears some relation to estates and to the rights and interests of heirs thereof.

The said representations are false and misleading. In truth and in fact respondent’s business has nothing whatever to do with estates or the rights or interests of persons therein. Par. 9. The name “National Estates Service” is merely a disguise _for the true nature of respondent’s business and respondent’s whole plan is one for the obtaining of information by deceit and subterfuge. Par. 10. The use as hereinabove set forth, of the foregoing false and misleading statements, representations and designation has had the capacity and tendency to mislead and deceive, and has misled and deceived, many persons to whom the said form letters were sent, into WILLIAM A. HERMAN 277 274 Findings the erroneous and mistaken belief that the said statements and representations were true, and that the said designation indicated the true nature of respondent’s business, and by reason thereof to give information which they would not otherwise have supplied. Par. 11. The aforesaid acts and practices of respondent, as herein alleged, are all to the prejudice and injury of the public, and constitute: unfair and deceptive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act. ExuHisit A (Copy ) COrtlandt 7-4303 NATIONAL ESTATES RESEARCH Executive Offices 170 Broadway, New York, N. Y.

Worldwide Genealogical Service Dear File # Estate We are endeavoring to locate some of the Heirs in the above estate, and during the course of our activities we learned of your address. Will you kindly advise uS when and where you can be interviewed, in order that we.:may be able to ascertain your connection, if any, with the Estate in question; or return this letter with the following information.

MARRIED OR PAIGE 9 0s +4DATH (OF) BIRTH -23_ bed 2} = REACH seenat SINGLEA. - 42258 HUGIb NAMES OB of 2 secoPES AGEL fe. t.OCCUPATIONS 225.2 xk DINENOVTEGSSpeNCNM igo CV EDTN)GS Ne a rs ee ACHE RS. yl L INAM Ho 22a ee a ANS Wy 88SPSS ea tcpwe MOTHER’S MAIDEN NAME__-_---__-_--_--____ ADDRESS 10 2 Ueno t ea iiraQ2 BUSINESS VYOURTOCCUPBATIONG 2 252 teasersee AD DIDS Sx ns ee aes HOME ADDRESS (Please give street or road) Very truly yours, NATIONAL ESTates RESEARCH.

Report, FINDINGS AS TO THE Facts, AND ORDER Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission on September 26, 1944, issued and - subsequently served its complaint, in this proepedinr: upon. aif respondent, William A. Herman, an individual, charging him with the: use of unfair and deceptive acts and practices in commerce in violation. of the provisions of said Act. After the issuance of said complaint Findings 43 F. T. C. and the filing of the answer of the respondent thereto, testimony and other evidence in support of and in opposition to the allegations of said complaint were taken before a trial examiner of the Commission theretofore duly designated by it and said testimony and other ev1dence were duly recorded and filed in the office of the Commission. Thereafter, this proceeding regularly came on for final hearing before the Commission upon said complaint, answer thereto, testimony and other evidence, report of the trial examiner upon the evidence and exceptions filed thereto, and briefs filed in support of the complaint and in opposition thereto (oral argument not having been requested) ; and the Commission, having duly considered the matter and being now fully advised in the premises, finds that this proceeding is in the. interest of the public and makes this its findings as to the facts and its conclusion drawn therefrom:

FINDINGS AS TO THE FACTS Paracrary 1. Respondent, William A. Herman, is an individual, with an office and principal place of business at 170 Broadway, in the city and State of New York.

Par. 2. Respondent is now, and for several years last past has been, engaged in business as a private detective and investigator in the State of New York under a license issued by that State. In connection with operation of his business the respondent uses the trade names “Equitable Service Bureau” and “National Estates Research,” certificates for the use of which names were filed by respondent in the office of the County Clerk of New York County. The principal part of respondent’s business is the investigation of, and obtaining information concerning, persons who have, or represent themselves as having, claims against Insurance companies or employers in connection with industrial insurance and workmen’s compensation laws. Respondent has made investigations for most of the casualty and liability companies doing business in New York City and also for many larger employers of labor who carry their own insurance and are designated under the workmen’s compensation law as “self-insured.” Respondent’s business is the obtaining for those who employ him for compensation, of information concerning others which will be of value to his clients and includes investigations into civil, criminal, general insurance, and commercial situations where fraud may be involved. Par. 3. Certain of respondent’s clients cause goods and other property to be transported from their respective places of business to purchasers thereof located in other States of the United States, and maintain, and at all times mentioned herein have maintained, courses of trade in ‘such goods and property between and among the various WILLIAM A. HERMAN 279 274 Findings States of the United States. Other of respondent’s clients are engaged in the business of insurance, which they regularly carry on in commerce between and among the various States of the United States. Some of respondent’s clients are located in the State of New York and others are located in other States of the United States. The course and conduct of respondent’s said business involves intercourse of a commercial and business nature between him and his clients and the persons from whom information is sought who are located in States other than the State of New York.

Par. 4. In the course and conduct of respondent’s said business of obtaining information concerning other persons, respondent uses certain form letters substantially in the form set out as follows: COrtlandt 743038 NATIONAL ESTATES RESEARCH Executive Offices 170 Broadway, New York, N. Y.

Worldwide Genealogical Service Dear File # Estate We are endeavoring to locate some of the Heirs in the above estate, and during the course of our activities we learned of your address. Will you kindly advise us when and where you can be interviewed, in order that we may be able to ascertain your connection, if any, with the Estate in question; or return this letter with the following information.

MARRIED OR AGH 222)2 DATE, OH BIRTH {felic2 io RAGE eet SINGLHS7_=+-_- IMO EOSINTON 6)Ma eee Beeee AGE __-. OCCUPATION___________ NAMES AND AGES OF CHILDREN --~-------------------------_----------- PATHHR’S) FIRST NAME 2-2 ee et et et ADDRESS Tlea. eat eeges MOTHER’S MAIDEN NAME ___-__---------- AD DIRS Si2oe) es se eee BUSINESS YOUR OCCUPATION 1202-222LeSie = -ersie ADDRESS SittesSuber s20s te HOME ADDRESS (Please give street or road) INFORMATION FURNISHED BY ------------------------------------------ Very truly yours, NATIONAL ESTATES RESEARCH.

F-1 Par. 5. In the course of making his investigations and for the purpose of obtaining information, the respondent mailed the form letter above described to the persons concerning whom information was Findings 43K. TC:

sought at their last known addresses, together with stamped envelopes addressed to “National Estates Research” at respondent’s New York City address for the return of said form letters. Many of the persons to whom said form letters and return envelopes were sent were located in States other than the State of New York. National Estates Research conduets.no business of any kind and is merely a trade. name used by respondent. Such of the form letters as are filled out and mailed by the recipients thereof are received by the respondent, and the information so obtained used by him in such manner as he deems expedient in obtaining the information desired by his client. Par. 6. By meansof said form letters and envelopes respondent has represented directly and by implication to the recipients thereof that National Estates Research is engaged in genealogical research and ia endeavoring to locate heirs to existing estates and that the recipients may have interests in such estates which may be of financial benefit to them.

The said representations are false and misleading. In truth and in fact, respondent, in conducting National Estates Research, is not engaged in genealogical research. He is not endeavoring to locate heirs to any estates, nor has he any knowledge of any interest in any estates to which the persons concerning whom he is seeking information may be entitled.

Par. 7. Through the use of the name “National Estates Research” respondent has represented, directly and by implication, that said concern bears some relation to estates and to the right and interest of heirs thereto. The said representations are false and misleading. In truth and in fact, respondent’s business generally has nothing whatever to do with estates or the right or interests of persons therein. ‘The respondent did testify that on one occasion he did make a search for a missing their in an estate but admitted that such investigations constituted a very minor and negligible part of the business conducted by him.

Par, 8. The name “National Estates Research” is merely a disguise for the true nature of respondent’s business, and respondent’s whole plan is one for obtaining information by deceit and subterfuge. Par. 9. The use as hereinabove set forth of the foregoing false and misleading statements and representations has a tendency and capacity to, and did, mislead and deceive many of the persons to whom said form letters were sent, into the erroneous and mistaken belief that such ‘Statements and representations were true and that the name “National Estates Research” truthfully indicated and described the capacity and character of the concern purportedly requesting the information; and the tendency and capacity to cause such persons, WILLIAM A. HERMAN 281 274 Order by reason thereof, to give information which they otherwise would not have supplied.

CONCLUSION The acts and practices of the respondent as herein found are all to the prejudice and injury of the public and constitute unfair and deceptive acts and practices within the intent and meaning of the Federal Trade Commission Act.

ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission on the complaint’ of the Commission, answer of the respondent, testimony, and other evidence in support of and in opposition to the allegations of said complaint taken before a trial examiner of the Commission theretofore duly designated by it, report of the trial examiner upon the evidence and exceptions filed thereto, and briefs filed in support of the complaint and in opposition thereto; and the Commission having made its findings as to the facts and its conclusion that the respondent has violated the provisions of the Federal Trade Commission Act:

It is ordered, That the respondent, William A. Herman, an individual, trading under the name National Estates Research or trading under any other name or names, and his representatives, agents, and employees, directly or through any corporate or other device in connection with the solicitation or obtaining of information in commerce as “commerce” is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

1. Representing through the use of the trade name “National Esstates Research,” or any other trade name of similar import or meaning, that persons concerning whom information is sought have, or may have, an interest in some estate, unclaimed asset, or other property, when the information sought is for use in connection with investigations not connected with any interest in an estate, unclaimed asset, or other property.

2. Using, or placing in the hands of others for use, form letters or other printed material so worded and designed as to represent or imply that it has been forwarded by some agency engaged in the administration of estates or engaged in locating missing heirs or persons having an interest in some estate, property, or unclaimed asset, or that the information sought to be obtained by such form letters and other printed material is for use in locating such missing heirs or other interested parties, when the information sought is for use in Order 43 ¥. T. C. connection with investigations not connected with any interest in an estate, unclaimed asset, or other property.

3. Representing in any manner, either directly or by implication, that persons concerning whom information is sought have or may have an interest in some estate, unclaimed asset, or other property, when the information sought is for use in connection with investigation of claims made against casualty or liability insurance companies or other insurers or in connection with investigations of a similar nature. 4, Representing directly or by implication that respondent is engaged in genealogical research.

It is further ordered, That the respondent shall, within 60 days after service upon him of this order, file with the Commission a report in writing, setting forth in detail the manner and form in which he has complied with this order.

WILLIAMS S. L. K. LABORATORIES 283 Syllabus