PUC Probes Moving Company for Theft, Violations

The California Public Utilities Commission said Wednesday that it is investigating Starving Students Inc. moving company for service complaints ranging from theft to failing to show up for planned moves.

The PUC said it also is looking into allegations by commission staff that the Los Angeles-based moving company underreported revenues so that it could pay smaller license fees and operated at times without insurance.

Starving Students Chief Executive Mark Peers said the moving company, which has branch operations in 11 states, has been working with the PUC for a year to resolve numerous complaints that resulted from a corporate overexpansion from 1998 to 2000.

However, he said, the company believes it reported revenue correctly to the state and has never operated without insurance. Both allegations are the result of misunderstandings with the PUC staff, Peers said, adding that the company is working to clear them up.

“With the explosive growth we had as a company, chaos set in,” resulting in shoddy service, Peers acknowledged. A corporate overhaul in 2000 has resulted in better moving service, he said, pointing to only 24 complaints last year on nearly 50,000 household moves.

The PUC order initiating investigation, which was released late Wednesday, listed complaints from 58 consumers. Allegations included the theft of items while in the custody of Starving Students, charging more than the estimate provided and arriving hours late or failing to arrive at all for a scheduled move. Customers also complained that movers solicited tips through extortion or intimidation, the PUC said.

The PUC has the option of suspending or revoking the license of Starving Students or fining the company, a PUC spokeswoman said.

Starving Students, founded in 1973, is owned by Ethan Margalith, his father, Sanford, his mother, Elizabeth, and his sister, Abigail, according to the PUC order.