[Federal Register Volume 67, Number 196 (Wednesday, October 9, 2002)]
[Notices]
[Pages 62975-62976]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-25695]


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FEDERAL MARITIME COMMISSION

[Docket No. 02-14]


Avalon Risk Management, Inc., General Agent for Aegis Security 
Insurance Co. v. Michael Brian Deitchman, Arnistics, LLC and Advanced 
Global Logistics; Notice of Filing of Complaint and Assignment

    Avalon Risk Management, Inc., General Agent for Aegis Security 
Insurance Co., (``Complainant'') has filed a complaint against Michael 
B. Deitchman; Arnistics, LLC; and Advanced Global Logistics 
(``Respondents''). Complainant states that it provided Ocean 
Transportation Intermediary (``OTI'') bonds to the Respondents, who 
represented that they would comply with all Federal Maritime Commission 
(``Commission'') OTI regulations, including paying freight and related 
charges. However, Complainant alleges that Respondents fraudulently 
induced carriers to release cargo to them or their agents, thus causing 
carriers to lose their liens on the cargo without payment. Four 
carriers have settled claims for the resultant damages with 
Complainant, to whom they have assigned their recovery rights.

[[Page 62976]]

Complainant states that Respondent Deitchman breached the settlement 
agreement he entered into to indemnify the Complainant for the costs 
associated with the claims, thus violating the Shipping Act of 1984 
(``Shipping Act'') by obtaining ocean transportation at less than the 
rates that would otherwise be applicable. Respondents are said to have 
violated section 10(a)(1) of the Shipping Act by issuing checks with 
insufficient funds as payment to carriers for the ocean freight and 
other charges incurred by Respondents, thereby obtaining ocean 
transportation at less than the rates that would otherwise be 
applicable. Complainant also alleges that Respondents violated certain 
OTI fiduciary duties.
    Complainant asks the Commission to issue orders (1) compelling 
Respondents to answer its charges and scheduling a hearing in 
Washington DC; (2) against the Respondents for their violations of the 
Shipping Act; (3) compelling Respondents to make reparations to 
Complainant, plus interest, costs and attorneys' fees; and (4) holding 
that the Respondents' business activities described in the Complaint 
are unlawful and in violation of the Shipping Act and ordering them to 
cease and desist therefrom.
    This proceeding has been assigned to the office of Administrative 
Law Judges. Hearing in this matter, if any is held, shall commence 
within the time limitations prescribed in 46 CFR 502.61, and only after 
consideration has been given by the parties and the presiding officer 
to the use of alternative forms of dispute resolution. The hearing 
shall include oral testimony and cross-examination in the discretion of 
the presiding officer only upon proper showing that there are genuine 
issues of material fact that cannot be resolved on the basis of sworn 
statements, affidavits, depositions, or other documents or that the 
nature of the matter in issue is such that an oral hearing and cross-
examination are necessary for the development of an adequate record. 
Pursuant to the further terms of 46 CFR 502.61, the initial decision of 
the presiding officer in this proceeding shall be issued by October 1, 
2003, and the final decision of the Commission shall be issued by 
January 26, 2004.

Bryant L. VanBrakle,
Secretary.
[FR Doc. 02-25695 Filed 10-8-02; 8:45 am]
BILLING CODE 6730-01-P