COMMENT ⊗   VALID 00002 PAGES
C REC  PAGE   DESCRIPTION
C00001 00001
C00002 00002	.require "let.pub[let,jmc]" source
C00009 ENDMK
C⊗;
.require "let.pub[let,jmc]" source
∂AIL Department of Justice↓Washington, D.C. 20530∞

Gentlemen:

	On the basis of the enclosed information, we have come to believe
that there is a strong possibility that Quasar Industries of Rutherford,
New Jersey is engaging in fraud, and we hope you will investigate.  Here
are some relevant facts:

.item←0
	#. In July, Quasar and its president, Anthony Reichelt,
claimed that they were developing a domestic robot that could act
as a general purpose servant.

	#. These claims received nationwide publicity including
%2Newsweek%1, %2Parade%1, and the enclosed Associated Press dispatch
which led to numerous stories.  Unfortunately, none of the stories
expressed any skepticism about the claims.

 	#. Experts in artificial intelligence and robotics at M.I.T.,
Stanford University, Carnegie-Mellon University, Rutgers and many
others unanimously agree that such a robot is far beyond the current
state of the art as we know it.  While it is possible that someone
who has never published any work in the field and has no training in
it could be far ahead of all of us, we are entitled to be skeptical.

	#. Many demonstrations of the Quasar robot were held at department
stores in differeet cities.  Graduate students in artificial intelligence
from Carnegie-Mellon investigated two of them and found evidence of remote
control of both movements and speech.  Computer experts from General
Motors investigated an exhibition of the robot in Detroit and
independently came to the same conclusion.

	#. Recent attempts by news media to investigate Quasar have met
with evasions and answers to questions inconsistent with the claims the
company has made.

	#. The enclosed copy of a Quasar brochure is consistent with
the possibility that Quasar selects from its letters of inquiry,
those that lead them to people easily swindled.  These would be,
for example, elderly well-to-do people who need household help.
The following quotation from the brochure suggests that potential
victims could easily be spotted in the guise of determining how
to match the personality of the robot to the personality of the
customer.

	%2"The DA-2 model is available only by reserved production number
order to qualified individuals and corporations.  The specialized nature
of these Robots require a compatability program analysis with prospective
owners before delivery, to establish gender, personality, intelligence
level required and specialized internal sub-systems.

	"Inquiries are now being received for sponsor application forms to
determine individual qualificationa and requirements"%1.

	We don't know whether making false claims is illegal until they
actually take money from someone.  It is certainly harmful, because it
makes difficult informed public discussion of the policy issues raised by
actual scientific advances.  However, it is  possible that
they have already taken money fraudulently from credulous investors or
customers.

	Much more material about Quasar and its claims has been accumulated
by individuals in various artificial intelligence laboratories,
and we will all be glad to provide further information.  You can reach
us at the above addresses and telephone numbers.
If you are not the right agency to investigate, please refer the matter
to that agency, or let us know to whom we should refer it.

.nofill



John McCarthy
Professor of Computer Science
Director, Artificial Inteligence Laboratory
Stanford University
Stanford, California 94304
telephone: (415) 497-4430



Marvin Minsky
Donner Professor of Science
Massachusetts Institute of Technology
Cambridge, Massachusetts, 02139
telephone: (617) 253-5864



Brian Reid
Computer Science Department
Carnegie-Mellon University
Pittsburgh, Pennsylvania


cc: Chief Postal Inspector,
Main Postal Service Building,
Washington DC 20260