B-83885, B-86001-/K), I-17000-616 AND 13871, OCT. 31, 1956

B-83885,B-86001-/K): Oct 31, 1956

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IN WHICH THE OFFICER OFFERED TO CONSENT TO HAVE HIS PAY CHECKED IN THE AMOUNT OF $500. IS IN RESPONSE TO OUR LETTER OF JULY 20. IN WHICH IT WAS POINTED OUT THAT THE $400 THEN OFFERED IN FULL SETTLEMENT OF THE ERRONEOUS PAYMENTS OF $808.80 FOR THE PERIOD OCTOBER 20. IT WAS SUGGESTED. WE WOULD UNDERTAKE TO HAVE THE MATTER CONSIDERED BY THE DEPARTMENT OF JUSTICE UNDER ITS COMPROMISE JURISDICTION. HE WAS PAID INCREASED RENTAL AND SUBSISTENCE ALLOWANCES ON ACCOUNT OF A DEPENDENT MOTHER IN THE SUM OF $1. THAT AFTER THAT DATE HE CONTINUED TO RECEIVE HIS PAY AND ALLOWANCES (INCLUDING THE DEPENDENCY ALLOWANCES TO WHICH HE WAS NOT ENTITLED) UNDER THE SAVED PAY PROVISIONS OF SECTION 515 OF THE CAREER COMPENSATION ACT OF 1949.

B-83885, B-86001-/K), I-17000-616 AND 13871, OCT. 31, 1956

TO THE SECRETARY OF THE NAVY:

BY LETTER DATED AUGUST 30, 1956 (FILE PERS F21-MJZ 410275/1310), THE BUREAU OF NAVAL PERSONNEL REFERRED HERE FOR CONSIDERATION AN UNSIGNED COPY OF A LETTER DATED AUGUST 21, 1956, FROM LIEUTENANT ROBERT A. KOMEROFF, 410275/1310, USN, TO THE CHIEF OF NAVAL PERSONNEL, IN WHICH THE OFFICER OFFERED TO CONSENT TO HAVE HIS PAY CHECKED IN THE AMOUNT OF $500, PAYABLE OVER A PERIOD OF TEN MONTHS, IN FULL SETTLEMENT OF HIS DEBT TO THE UNITED STATES ON ACCOUNT OF ERRONEOUS PAYMENTS MADE TO HIM FOR THE PERIOD OCTOBER 20, 1948, THROUGH JULY 31, 1950, ON HIS CERTIFICATES THAT HE HAD A DEPENDENT MOTHER.

LIEUTENANT KOMOROFF'S LETTER OF AUGUST 21, 1956, IS IN RESPONSE TO OUR LETTER OF JULY 20, 1956, TO YOU, IN WHICH IT WAS POINTED OUT THAT THE $400 THEN OFFERED IN FULL SETTLEMENT OF THE ERRONEOUS PAYMENTS OF $808.80 FOR THE PERIOD OCTOBER 20, 1948, TO JUNE 30, 1949, COVERED ONLY A PART OF HIS DEBT, AND THAT SINCE THE ACCEPTANCE OF HIS OFFER WOULD LEAVE HIM LIABLE FOR THE SUBSEQUENT ERRONEOUS PAYMENTS OF $1,039.40 FOR THE PERIOD JULY 1, 1949, THROUGH JULY 31, 1950, WE WOULD TAKE NO ACTION WITH RESPECT TO SUCH OFFER IN COMPROMISE. IT WAS SUGGESTED, HOWEVER, THAT IF THE OFFICER WISHED TO SUBMIT AN OFFER IN COMPROMISE OF HIS DEBT COVERING THE ENTIRE PERIOD OCTOBER 20, 1948, THROUGH JULY 31, 1950, WE WOULD UNDERTAKE TO HAVE THE MATTER CONSIDERED BY THE DEPARTMENT OF JUSTICE UNDER ITS COMPROMISE JURISDICTION.

WHILE THAT LETTER STATED THAT THE TOTAL ERRONEOUS PAYMENTS FOR THE WHOLE PERIOD INVOLVED AMOUNTED TO $1,848.20 ($808.80 PLUS $1,039.40), A SUBSEQUENT REEXAMINATION OF LIEUTENANT KOMEROFF'S PAY ACCOUNT FOR THE PERIOD OCTOBER 20, 1948, THROUGH JULY 31, 1950, DISCLOSED THAT DURING THE PERIOD OCTOBER 20, 1948, THROUGH SEPTEMBER 30, 1949, HE WAS PAID INCREASED RENTAL AND SUBSISTENCE ALLOWANCES ON ACCOUNT OF A DEPENDENT MOTHER IN THE SUM OF $1,098.20, AND THAT AFTER THAT DATE HE CONTINUED TO RECEIVE HIS PAY AND ALLOWANCES (INCLUDING THE DEPENDENCY ALLOWANCES TO WHICH HE WAS NOT ENTITLED) UNDER THE SAVED PAY PROVISIONS OF SECTION 515 OF THE CAREER COMPENSATION ACT OF 1949, 63 STAT. 831, AT THE RATES PRESCRIBED IN THE PAY READJUSTMENT ACT OF 1942 BEING PAID TO HIM ON SEPTEMBER 30, 1949. BEGINNING OCTOBER 1, 1949, HOWEVER, HIS PAY AND ALLOWANCES IN HIS OWN RIGHT (EXCLUSIVE OF THE ERRONEOUS ALLOWANCES FOR DEPENDENTS) EXCEEDED THOSE UNDER THE PAY READJUSTMENT ACT OF 1942. FROM OCTOBER 1, 1949, THROUGH JULY 31, 1950, HE WAS PAID SAVED PAY AND ALLOWANCES IN THE SUM OF $4,475.60 ON THE ERRONEOUS BASIS OF BEING AN OFFICER WITH A DEPENDENT, WHEREAS HE WAS ENTITLED UNDER THE CAREER COMPENSATION ACT TO THE SUM OF $3,985 AS AN OFFICER WITHOUT A DEPENDENT. HENCE, THE IMPROPER DEPENDENCY PAYMENTS TO HIM FOR THAT PERIOD AMOUNTED TO $490.60. ON THAT BASIS, THE ERRONEOUS DEPENDENCY PAYMENTS MADE TO HIM DURING THE ENTIRE PERIOD OCTOBER 20, 1948, THROUGH JULY 31, 1950, AMOUNTED TO $1,588.80 ($1,098.20 PLUS $490.601, INSTEAD OF $1,848.20 AS INDICATED IN OUR LAST LETTER.

THE OFFER IN COMPROMISE NOW MADE BY LIEUTENANT KOMEROFF IS ONLY $100 MORE THAN HE OFFERED IN SETTLEMENT OF A DEBT OF $808.80, AND IS LESS THAN ONE- THIRD OF THE DEBT CHARGE AS NOW REDUCED. IN VIEW OF ALL THE CIRCUMSTANCES OF THIS CASE, INCLUDING DEBTOR'S INCOME IT WOULD NOT APPEAR REASONABLE TO RECOMMEND ACCEPTANCE OF THIS SMALL OFFER, PARTICULARLY SINCE THE WHOLE DEBT MIGHT BE ADMINISTRATIVELY CHECKED AGAINST HIS PAY UNDER THE PROVISIONS OF THE ACT OF JULY 15, 1954, 68 STAT. 482. PENDING FURTHER ADVICE FROM LIEUTENANT KOMEROFF, HOWEVER, WE WILL DELAY 45 DAYS IN REPORTING THE CASE TO THE DEPARTMENT OF JUSTICE FOR COLLECTION.