Mover Ordered to Run Ad to Help Customers Who Were Overbilled : Penalties: The owner of two companies pleaded no contest to charges of false and misleading advertising.

The president of two Van Nuys-based moving companies that pleaded no contest to charges of false and misleading advertising has been required by state authorities to buy a large newspaper ad that encourages victimized customers to call state investigators for restitution.

The placement of the ad marks the first time that such a disciplinary measure has been used by the state Public Utilities Commission, which regulates moving companies. The ad is scheduled to appear Sunday in the Valley Edition of the Los Angeles Times.

Louis J. Porcaro, president of A Nice Jewish Boy Moving & Storage Inc. and Father & Son Moving & Storage Inc., pleaded no contest in Los Angeles Municipal Court in March to three misdemeanor counts of false and misleading advertising. Porcaro was sentenced to pay more than $15,000 in fines and penalties and his company was placed on two years probation.

He pleaded guilty that month in an administrative law hearing to seven public utilities code violations, including failure to respond to loss and damage claims, misrepresentation of rates and failure to provide records to PUC investigators.

He was required to buy a $1,750 ad, was fined $15,000 and his business operations were suspended for 45 days.

Larry McNeely, who heads the PUC investigations unit, said Porcaro was guilty of using “bait-and-switch” tactics with his customers. McNeely said employees of the two companies provided customers with over-the-phone estimates--a violation of PUC code--and then a 10.5% surcharge was tacked on once the goods were on the truck. The violations occurred between 1989 and 1990, he said.

Porcaro is also known as Leo Rosen, according to PUC officials. His brother, John Porcaro, operates Father & Son Moving & Storage of San Diego Inc., where some of the violations occurred, PUC officials said.

At least 44 customers were identified as victims of the violations, but McNeely said the advertisement is expected to bring forth more victims. “Pretty novel idea, right?” he said.

Deputy City Atty. Fay Chu, who prosecuted Porcaro on the misdemeanor charges, said the newspaper ad is a good idea. “It makes the public aware that this particular business has been in violation of the law by basically charging people more than they should have,” she said. “It’s the quickest way of letting the public know that this organization has not been operating legally.”

Peter Osborn, an attorney representing Porcaro, said it was his idea to put an ad in the newspaper in order to conclude the case. “Most of the allegations in this case are over two years old and my client has worked exceedingly hard to improve his operations and has been successful,” he said, declining to comment further.

The newspaper ad was written by PUC officials. It describes the code violations and includes the telephone number of a PUC investigator for customers who feel they are entitled to restitution.

The PUC decided that the ad should run in a newspaper with a wide circulation in the San Fernando Valley because that is the area where Porcaro has done most of his business.

Bill Schulte, transportation director for the PUC, acknowledged that Porcaro’s business may not survive the negative publicity generated by the ad. But he said the public’s right to know about the violations outweighs the potential loss of business.

Douglas Hill, president of the California Moving and Storage Assn., called Porcaro’s violations “pretty horrendous” and said he supports harsh punishments for moving companies that violate PUC rules.

“Any permitted carrier who is not going to abide by the rules should be brought to justice,” he said. Hill said Porcaro is not a member of the association.

Hill also said the newspaper ad may prove successful at identifying victims. “This form of punishment is unique and maybe it can have an impact, especially if other victims come forward,” he said.

According to public records detailing the PUC investigation, investigators interviewed several customers who said that they received verbal estimates over the telephone and that some movers misrepresented the hourly rates to them.

The records also show that the Los Angeles Police Department and the Los Angeles County district attorney’s office executed a criminal search warrant in November, 1990, at the Van Nuys and San Diego offices of A Nice Jewish Boy Moving & Storage and Father & Son Moving & Storage.

They uncovered dozens of documents that had not been turned over to officials for a formal PUC audit, as was required, according to the records. The search also uncovered copies of hundreds of customer bills from 1990 that showed a 10.5% surcharge that customers interviewed by PUC officials said was never revealed to them, the records show.