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MICROCOMP Output File S. Hrg. 106±181 THE HIDDEN OPERATORS OF DECEPTIVE MAILINGS HEARING BEFORE THE PERMANENT SUBCOMMITTEE ON INVESTIGATIONS OF THE COMMITTEE ON GOVERNMENTAL AFFAIRS UNITED STATES SENATE ONE HUNDRED SIXTH CONGRESS FIRST SESSION JULY 20, 1999 Printed for the use of the Committee on Governmental Affairs ( U.S. GOVERNMENT PRINTING OFFICE 59±577 cc WASHINGTON : 1999 For sale by the Superintendent of Documents, Congressional Sales Office U.S. Government Printing Office, Washington, DC 20402 VerDate 11-SEP-98 12:52 Oct 26, 1999 Jkt 000000 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 59577.TXT SAFF2 PsN: SAFF2 COMMITTEE ON GOVERNMENTAL AFFAIRS FRED THOMPSON, Tennessee, Chairman WILLIAM V. ROTH, Jr., Delaware JOSEPH I. LIEBERMAN, Connecticut TED STEVENS, Alaska CARL LEVIN, Michigan SUSAN M. COLLINS, Maine DANIEL K. AKAKA, Hawaii GEORGE V. VOINOVICH, Ohio RICHARD J. DURBIN, Illinois PETE V. DOMENICI, New Mexico ROBERT G. TORRICELLI, New Jersey THAD COCHRAN, Mississippi MAX CLELAND, Georgia ARLEN SPECTER, Pennsylvania JOHN EDWARDS, North Carolina JUDD GREGG, New Hampshire HANNAH S. SISTARE, Staff Director and Counsel JOYCE A. RECHTSCHAFFEN, Minority Staff Director and Counsel DARLA D. CASSELL, Administrative Clerk PERMANENT SUBCOMMITTEE ON INVESTIGATIONS SUSAN M. COLLINS, Maine, Chairman WILLIAM V. ROTH, JR., Delaware CARL LEVIN, Michigan TED STEVENS, Alaska DANIEL K. AKAKA, Hawaii GEORGE V. VOINOVICH, Ohio RICHARD J. DURBIN, Illinois PETE V. DOMENICI, New Mexico MAX CLELAND, Georgia THAD COCHRAN, Mississippi JOHN EDWARDS, North Carolina ARLEN SPECTER, Pennsylvania K. LEE BLALACK, II, Chief Counsel and Staff Director LINDA J. GUSTITUS, Minority Chief Counsel and Staff Director MARY D. ROBERTSON, Chief Clerk (II) VerDate 11-SEP-98 12:52 Oct 26, 1999 Jkt 000000 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 59577.TXT SAFF2 PsN: SAFF2 C O N T E N T S Opening statements: Page Senator Collins ................................................................................................. 1 Senator Durbin ................................................................................................. 4 Senator Edwards .............................................................................................. 14 Prepared opening statement: Senator Levin .................................................................................................... 3 WITNESSES TUESDAY, JULY 20, 1999 Glynna Christian Parde, Chief Investigator and Senior Counsel, Permanent Subcommittee on Investigations, Committee on Governmental Affairs .......... 5 David Dobin, President, Lone Star Promotions, Inc., Merrick, New York, accompanied by Peter J. Tomao, Esq., Garden City, New York ...................... 21 Anthony Kasday, President, Neopolitan Consultants, Inc., Las Vegas, Nevada, accompanied by John Burns, Esq., New York, New York ................................ 26 Kenneth J. Hunter, Chief Postal Inspector, U.S. Postal Inspection Service, and Robert G. DeMuro, U.S. Postal Inspector Attorney, U.S. Postal Inspec- tion Service ........................................................................................................... 43 ALPHABETICAL LIST OF WITNESSES DeMuro, Robert G.: Testimony .......................................................................................................... 43 Prepared statement .......................................................................................... 75 Dobin, David: Testimony .......................................................................................................... 21 Prepared statement .......................................................................................... 64 Hunter, Kenneth J.: Testimony .......................................................................................................... 43 Prepared statement .......................................................................................... 75 Kaskday, Anthony: Testimony .......................................................................................................... 26 Parde, Glynna Christian: Testimony .......................................................................................................... 5 Prepared statement .......................................................................................... 55 EXHIBITS * May Be Found In The Files of the Subcommittee 1. Enwood, Pressman & Ingram, Inc. mailing, Acknowledgment Voucher ....... 87 2. Enwood, Pressman & Ingram, Inc. mailing, Quick Bucks ............................ 88 3. Enwood, Pressman & Ingram, Inc. mailing, Notification of Cash Payoff .... 91 4. Enwood, Pressman & Ingram, Inc. mailing, Unidentified Claimant Sec- tion ..................................................................................................................... 92 5. Mellon, Astor & Fairweather, Inc. mailing, Car Offer .................................. 93 6. Mellon, Astor & Fairweather, Inc. mailing, Revocation Notice ..................... 97 7. Mellon, Astor & Fairweather, Inc. mailing, ATM Express ............................ 99 8. North American Bureau of Assets mailing, Original Affidavit .................... 100 9. North American Bureau of Assets mailing, Cash Giveathon II .................... 101 10. North American Bureau of Assets mailing, International Funding Dis- tribution Department ........................................................................................ 104 (III) VerDate 11-SEP-98 12:52 Oct 26, 1999 Jkt 000000 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 59577.TXT SAFF2 PsN: SAFF2 IV Page 11. Lone Star Promotions mailing, Official Announcement Form ...................... 106 12. Lone Star Promotions mailing, Registered Notification ................................ 107 13. Lone Star Promotions mailing, Champion Promotions Int. .......................... 109 14. Lone Star Promotions mailing, Darwin American Selection Services .......... 110 15. R & R Marketing mailing, Official United Sweepstakes of America ............ 111 16. R & R Marketing mailing, Unclaimed Cash Belonging To You ................... 112 17. Contest Express mailing, Asset Management & Distribution ....................... 113 18. Justin Grant mailing, Proceed to Notify ......................................................... 114 19. Millennium Sales mailing, Official Presentment of Award ........................... 115 20. Nordic Island Marketing Group mailing, National Disbursement Center ... 116 21. Mailworks International mailing, Wilson Perrie Corporation ....................... 117 22. Mailworks International mailing, Monetary Awards Division of CMS ........ 119 23. a. Steppin' Out Coupon Book (pink) (over $1,000) ........................................ 121 b. Steppin' Out Coupon Book (blue) (over $3,500) ......................................... 129 24. Five identical Cash Claim Service promotional mailings reflecting five different return addresses ................................................................................ 137 25. The Role of Consultants in Sweepstakes Companies, chart prepared by the Permanent Subcommittee on Investigations ........................................... 138 26. Different Companies, Same Product, chart prepared by the Permanent Subcommittee on Investigations ...................................................................... 139 27. Incorporated-Revoked Timeline, chart prepared by the Permanent Sub- committee on Investigations ............................................................................ 140 28. Materials sent to Permanent Subcommittee on Investigations in response to request for information from Cashorama, Inc., dated June 15 and 30, 1999 ............................................................................................................. 141 29. Materials sent to Permanent Subcommittee on Investigations in response to request for information from Corporate Prize Headquarters, Inc., dated July 1, 1999 ....................................................................................................... 177 30. Materials sent to Permanent Subcommittee on Investigations in response to request for information from Enwood, Pressman & Ingram, Inc., dated June 14 and 16 and July 6, 1999 .................................................................... 180 31. Materials sent to Permanent Subcommittee on Investigations in response to request for information from Lone Star Promotions, Inc., dated June 7, 8 and 21 and July 15, 1999 ......................................................................... 189 32. Materials sent to Permanent Subcommittee on Investigations in response to request for information from Mellon, Astor & Fairweather, Inc., dated June 16 and July 6, 1999 ................................................................................. 199 33. Materials sent to Permanent Subcommittee on Investigations in response to request for information from Millennium Sales, Inc., dated May 14, 1999 .................................................................................................................... 207 34. Materials sent to Permanent Subcommittee on Investigations in response to request for information from North American Bureau of Assets, Inc., dated June 10, 15 and 17, 1999 ....................................................................... 209 35. Materials sent to Permanent Subcommittee on Investigations in response to request for information from Royal Sweepstakes, Inc., dated June 14, 1999 ............................................................................................................
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