B-135703, APR. 24, 1958

B-135703: Apr 24, 1958

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IN WHICH HE DENIES THAT YOU ARE INDEBTED TO THE GOVERNMENT IN CONNECTION WITH 21 MONTHLY CLASS E ALLOTMENT PAYMENTS OF $35 EACH. WHICH WERE MADE TO YOUR FATHER-IN-LAW. WHILE YOU WERE IN THE UNITED STATES AIR FORCE. SINCE NO DEDUCTIONS WERE MADE FROM YOUR PAY TO COVER SUCH ALLOTMENT PAYMENTS AND OUR RECORDS SHOW THAT ALL OF THE PAYMENTS INVOLVED WERE AUTHORIZED BY YOU. IT IS OUR POSITION THAT YOU ARE INDEBTED TO THE GOVERNMENT IN THE AGGREGATE AMOUNT OF SUCH ALLOTMENT PAYMENTS. THAT THE GOVERNMENT LED YOU TO BELIEVE THE ALLOTMENT PAYMENTS HAD BEEN DISCONTINUED BECAUSE DEDUCTIONS FROM YOUR PAY WERE DISCONTINUED. WHILE STATEMENTS WERE MADE IN SOME OF THE LETTERS ADDRESSED TO YOU BY THE AIR FORCE FINANCE CENTER AND BY THE CLAIMS DIVISION OF THIS OFFICE TO THE EFFECT THAT YOU HAD REQUESTED DISCONTINUANCE OF THE ALLOTMENT TO MR.

B-135703, APR. 24, 1958

TO MR. JOHN A. KIRKWOOD:

WE REFER TO LETTER DATED MARCH 17, 1958, FROM YOUR ATTORNEY, MR. KNUDSEN, IN WHICH HE DENIES THAT YOU ARE INDEBTED TO THE GOVERNMENT IN CONNECTION WITH 21 MONTHLY CLASS E ALLOTMENT PAYMENTS OF $35 EACH, WHICH WERE MADE TO YOUR FATHER-IN-LAW, MR. REMI D-HONDT, PURSUANT TO YOUR AUTHORIZATION, DURING THE PERIOD OCTOBER 1, 1948, TO JUNE 30, 1950, WHILE YOU WERE IN THE UNITED STATES AIR FORCE.

SINCE NO DEDUCTIONS WERE MADE FROM YOUR PAY TO COVER SUCH ALLOTMENT PAYMENTS AND OUR RECORDS SHOW THAT ALL OF THE PAYMENTS INVOLVED WERE AUTHORIZED BY YOU, IT IS OUR POSITION THAT YOU ARE INDEBTED TO THE GOVERNMENT IN THE AGGREGATE AMOUNT OF SUCH ALLOTMENT PAYMENTS, $735, NOTWITHSTANDING MR. KNUDSEN'S STATEMENTS TO THE EFFECT THAT YOU HAD TAKEN APPROPRIATE ACTION TO DISCONTINUE THE ALLOTMENT IN JULY 1948; THAT THE GOVERNMENT LED YOU TO BELIEVE THE ALLOTMENT PAYMENTS HAD BEEN DISCONTINUED BECAUSE DEDUCTIONS FROM YOUR PAY WERE DISCONTINUED; AND THAT YOU DERIVED NO BENEFIT FROM THE SUMS PAID BY THE GOVERNMENT "CONTRARY TO * * * (YOUR) EXPRESS WISH.'

WHILE STATEMENTS WERE MADE IN SOME OF THE LETTERS ADDRESSED TO YOU BY THE AIR FORCE FINANCE CENTER AND BY THE CLAIMS DIVISION OF THIS OFFICE TO THE EFFECT THAT YOU HAD REQUESTED DISCONTINUANCE OF THE ALLOTMENT TO MR. D- HONDT ON JULY 30, 1948, WE DO NOT HAVE ON FILE ANY ALLOTMENT DISCONTINUANCE NOTICE SIGNED BY YOU, OR ANY OTHER SUBSTANTIAL EVIDENCE, SHOWING YOU THAT YOU REQUESTED ANY CHANGE IN YOUR ALLOTMENT, EFFECTIVE AT THE END OF JULY 1948, EXCEPT A COPY OF WD AGO FORM 141 SIGNED BY YOU ON JULY 14, 1948, PROVIDING FOR THE DISCONTINUANCE, EFFECTIVE ON THE "LAST DAY OF JULY 1948" OF A $35 ALLOTMENT TO "REME D-HODT," BECAUSE OF MISSPELLED NAME, AND THE SIMULTANEOUS AUTHORIZATION OF A $35 ALLOTMENT TO "REMI D-HONDT" EFFECTIVE AUGUST 1, 1948. THIS SUBSTITUTED ALLOTMENT APPARENTLY WAS NOT DISCONTINUED, IN ACCORDANCE WITH THE APPLICABLE LAW AND REGULATIONS, UNTIL JUNE 30, 1950, THE DATE OF YOUR SEPARATION FROM THE SERVICE.

REGARDING THE ASSERTION TO THE EFFECT THAT THE GOVERNMENT, BY DISCONTINUING THE DEDUCTIONS FROM YOUR PAY, LED YOU TO BELIEVE THAT YOUR ALLOTMENT HAD BEEN DISCONTINUED, IT MAY BE NOTED THAT THE DEDUCTIONS FROM YOUR PAY WERE CONTINUED THROUGH SEPTEMBER 1948 AND WERE NOT DISCONTINUED AT THE TIME (END OF JULY 1948) WHEN, YOUR ATTORNEY CLAIMS, YOU TOOK APPROPRIATE STEPS TO STOP THE ALLOTMENT. IN ANY EVENT, THE MERE DISCONTINUANCE OF DEDUCTIONS FROM YOUR PAY TO COVER THE ALLOTMENT OBVIOUSLY COULD NOT REMOVE OR DISCHARGE YOUR LIABILITY FOR THE ALLOTMENT PAYMENTS MADE PURSUANT TO YOUR AUTHORIZATION AND NOT STOPPED IN ACCORDANCE WITH THE PERTINENT REGULATIONS UNTIL JUNE 30, 1950.

WHILE WE DO NOT KNOW THE EXTENT OF THE BENEFIT YOU DERIVED FROM THE PAYMENTS WHICH THE GOVERNMENT MADE TO MR. D-HONDT, WE DO NOT BELIEVE THAT YOUR LIABILITY TO THE GOVERNMENT DEPENDS ON WHETHER YOU OWED MR. D-HONDT SOME MONEY. IT HAS BEEN ASSERTED, HOWEVER, ON MR. D-HONDT'S BEHALF THAT YOU OWED HIM A SUBSTANTIAL SUM OF MONEY AND "ARRANGED TO HAVE PAYMENTS MADE * * * TO BE APPLIED ON THIS INDEBTEDNESS.'

IT IS AGAIN REQUESTED THAT YOU MAKE ARRANGEMENTS TO PAY YOUR DEBT OF $735, EITHER IN A LUMP SUM OR BY REGULAR MONTHLY INSTALLMENTS. PAYMENT SHOULD BE MADE BY CHECK OR MONEY ORDER PAYABLE TO U.S. GENERAL ACCOUNTING OFFICE AND FORWARDED TO U.S. GENERAL ACCOUNTING OFFICE, POST OFFICE BOX 2610, WASHINGTON 13, D.C. ..END :