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Eric
08-01-2008, 02:10 PM
Dave Grob is reporting over at mearsonline.com that subpoenas were served at the National yesterday July 31.

What have people heard about this? For those on the floor at the National, what the heck is going on?

otismalibu
08-01-2008, 02:13 PM
In keeping with the true spirit of the hobby, I would assume there were quite a few fake subpoenas mixed in with the legit offerings.

godwulf
08-01-2008, 04:30 PM
Do you try to get your subpoenas autographed, or do you like to keep them "as is"?

worldchamps
08-01-2008, 04:39 PM
You could get them graded, but it is so hard to get a 10, why bother

ironmanfan
08-01-2008, 04:40 PM
I can only imagine the "names" of those who received them.....

cohibasmoker
08-01-2008, 05:04 PM
Dave Grob is reporting over at mearsonline.com that subpoenas were served at the National yesterday July 31.

What have people heard about this? For those on the floor at the National, what the heck is going on?

Eric,

Please don't tease us. Any names? You're at ground zero so you have to know something. It would be interesting to know who doesn't open or is absent from their booth over the weekend.

Jim

Eric
08-01-2008, 05:30 PM
I am in NY, not at the show unfortunately. I wish I was there to find out what is happening firsthand. Perhaps we have to wait for people who are there today (or yesterday) to get back to their computers to hear something.

I would imagine that if something went down, the story would shoot around the national...

godwulf
08-01-2008, 05:58 PM
http://www.nydailynews.com/sports/more_sports/2008/08/01/2008-08-01_feds_crash_national_sports_collectors_co-2.html

Feds crash National Sports Collectors Convention, hand out subpoenas

BY TERI THOMPSON AND MICHAEL O'KEEFFE
DAILY NEWS SPORTS WRITERS
Friday, August 1st 2008, 5:35 PM
Federal investigators crashed the National Sports Collectors Convention in Rosemont, Ill., on Thursday and Friday, delivering subpoenas to several hobby executives to appear before a grand jury that is hearing evidence about fraud in their industry.

Agents from the FBI and United States Postal Service also questioned other dealers and authenticators at the National, the hobby's largest annual memorabilia show.
"This is part of an active federal investigation," said a source familiar with the probe. "I think they came to the National because they knew everybody would be here, all under one roof. It's like shooting ducks in a barrel."

As the Daily News first reported in July 2007, the Chicago division of the FBI, whose "Operation Foul Ball" smashed a multi-state autograph forgery ring during the 1990s, last year initiated an investigation into Illinois-based Mastro Auctions, sports memorabilia's largest auction house.

"The FBI has been walking the convention floor," said American Memorabilia president Victor Moreno. "You can feel the tension."

The visits from federal agents came as Mastro Auctions officials were preparing for the big live auction the company conducts in conjunction with the National.
"No more business as usual," said Chicago collector Michael Gidwitz, who was interviewed by the FBI several months ago. "An unregulated business like this, it brings in a lot of unscrupulous people. This needed to be done a long time ago."

Gidwitz, who became the first person to sell a baseball card for more than $1 million when he sold a T206 Honus Wagner once owned by NHL legend Wayne Gretzky to collector Brian Seigel in 2000 for $1.27 million, said he was victimized several times by one-time friend Bill Mastro, Mastro Auctions chairman. Those allegations first appeared in "The Card," a book about the T206 Wagner by two Daily News reporters that was published last year.

The Gretzky T206 Wagner, known in hobby as "the Holy Grail," was "discovered" by Bill Mastro in the 1980s. It was graded PSA-8 (on a scale off 1-10) by Professional Sports Authenticators, a card-grading service, even though one of the original authenticators acknowledged the company knew the card had been altered, a major violation of vintage card protocol. The book apparently hasn't affected the price: The Wagner was sold to an anonymous collector last year for $2.8 million through SCP Auctions, which owned a minority stake in the card. SCP, however, has never produced evidence that a transaction actually took place.

Mastro and auction house president Doug Allen did not return phone calls for comment. Nor did Randy Mastro, Mastro's brother and attorney who was a deputy mayor under Rudy Giuliani. A Justice Department spokesman in Chicago said he could not confirm or deny an investigation had been initiated.

Hobby executives who have talked to the agents in the past year say the agents have asked about "shill bidding," when an aucton house or a consignor enters fake bids on an item in order to drive up the price.

Investigators have also expressed interest in a North Carolina warm-up shirt sold at the live auction Mastro's company held at the National last year. The shirt was advertised as a Michael Jordan-owned item, even though Memorabilia Evaluation and Research Services, a leading authentication firm, concluded another player's name - Ranzino Smith - had been ripped from the back and repaced with "JORDAN."

The shirt sold for $11,000 and although Mastro Auctions eventually voided the sale, it renewed calls for greater regulation of the dog-eat-dog world of sports memorabilia and attracted attention from the FBI.

Investigators have also questioned Bill Brandt, the president of Development Specialists Inc., the company hired by the state of Ohio to liquidate coins and collectibles purchased with state money by Tom Noe, the Republican Party official convicted in 2006 of stealing from a $50 million workers compensation fund and sentenced to 18 years in prison. Noe had purchased thousands of dollars worth of memorabilia from Mastro, Brandt and Ohio law-enforcement officials have said. Mastro Auctions repurchased the memorabilia back from the state of Ohio in December for $2.5 million.

Leon Luckey of Brockelman and Luckey Auctions said he is believes allegations of wrongdoing have unfairly bruised what he calls "a good hobby." Luckey, who also moderates Network 54, a popular vintage card Web forum, said he hosted a dinner Thursday night for 135 collectors and dealers attending the show.
"We had a great time, laughing and telling stories," Luckey said. "If someone has done something wrong, they should be prosecuted to the fullest extent of the law but it is a shame that it casts a negative light on the hobby. I love baseball and I love cards, but this hobby is all about the people you meet."

godwulf
08-01-2008, 06:00 PM
The primary target would appear to be Mastro.

godwulf
08-01-2008, 06:02 PM
Sorry, no...I read the article too quickly the first time. The Mastro investigation the article went on about at such length seems to be a separate issue.

cohibasmoker
08-01-2008, 06:21 PM
http://www.nydailynews.com/sports/more_sports/2008/08/01/2008-08-01_feds_crash_national_sports_collectors_co-2.html

Nice find. I really liked the paragraph that read,

"This is part of an active federal investigation," said a source familiar with the probe. "I think they came to the National because they knew everybody would be here, all under one roof. It's like shooting ducks in a barrel."

Jim

Eric
08-01-2008, 07:35 PM
O'Keeffe made reference to the UNC Michael Jordan shooting shirt at Mastro. For those who don't remember, here is O'Keeffe's story about it from a year ago...

There is only one Jordan

Auction jersey revealed as fraud

BY MICHAEL O'KEEFFE
DAILY NEWS SPORTS WRITER

Sunday, August 19th 2007, 4:00 AM

It was a hell of a party, according to the press release issued by Mastro Auctions. About 300 sports collectible movers and shakers, many in town for the National Sports Collectors Convention, bid on 83 coveted pieces at Mastro's inaugural live auction, held Aug. 3 at the House of Blues in Cleveland.

A collection of rare T215 Pirate cigarette cards sold for $960,000, a record for a set of cards. Yankee manager Miller Huggins' 1927 World Series ring went for $204,000. One collector even spent $192,000 on a T206 Honus Wagner card in poor condition. But the event wasn't just about conspicuous consumption; Mastro Auctions also raised $20,000 for the Lance Armstrong Foundation.

"It's a terrific exclamation point to an already spectacular evening," Mastro Auctions president Doug Allen said in the press release.

The hangover from the event, however, just won't go away. One item, advertised as a Michael Jordan North Carolina warm-up shirt, sold for $11,000 even though questions had been raised about its authenticity well before the auction took place. Collectors cried foul on Game-Used Forum.com, a memorabilia Web site, and began investigating the shirt. Mastro Auctions voided the sale and sent the jersey back to the authentication service that raised the initial doubts for further review.

But the controversy over the "Jordan" shirt appears far from over: It has added new pressure to calls for greater regulation and standards for the dog-eat-dog world of sports memorabilia. The shirt has also attracted the interest of the FBI, which as the Daily News reported last month, has already begun an investigation into business practices at Mastro Auctions, sports memorabilia's largest auction house.

To prepare for the live auction, Mastro employees sent the shirt and other items to Memorabilia Evaluation and Research Services, one of the hobby's leading authentication services. MEARS examined the shirt on July 1, and concluded that while it appeared to be a North Carolina shooting shirt from the 1980s, it did not belong to Jordan.

When the shirt was placed over a light table, it was apparent that another name had been removed from the back and replaced with "JORDAN." The letters also seemed to be made of different materials than other patches on the piece, according to the MEARS work sheet.

"The Michael Jordan shirt we evaluated did not start its life as a Michael Jordan shirt," MEARS authenticator Troy Kinunen said.

MEARS' opinion was seconded by the University of North Carolina; officials there told the Daily News that Jordan still has his warm-up shirt.

Mastro Auctions, however, submitted the shirt to another authenticator, Lou Lampson; the auction catalogue said the shirt was accompanied by a letter of authenticity from Lampson but made no mention of MEARS' evaluation or opinion. In the days before the auction, Game-Used Forum members posted numerous comments about the conflicting opinions; one member said he E-mailed Mastro's Allen about the jersey but Allen did not respond. The shirt received seven bids and sold for $11,000, according to Mastro Auctions Web site.

"If Mastro did not inform the winning bidder of MEARS' findings, then, that is damn shady," one forum member wrote.

A week after the auction, another Game-Used Forum member said he had been contacted by an ACC basketball fan who said stains on the "Jordan" shirt looked remarkably similar to stains on a shirt he owned for several years. The ACC fan, a collector named Jim Reed, told the Daily News he had purchased the shirt from Ranzino Smith, who joined the Tar Heels in 1985, the year after Jordan left school and was drafted by the Chicago Bulls.

Reed said he sold the shirt to Eric Inselberg, a New Jersey dealer/collector, late last year, but he is convinced it is the same item Mastro sold this month. "This thing was in my display room for three years," Reed said. "I know my shirt."

Inselberg told the News he sold the shirt at a Westchester memorabilia show in January. Inselberg claimed he didn't know the buyer and since the buyer paid cash, he had no way to contact him.

Allen told the Daily News before the auction that he was not aware that MEARS had doubts about the jersey; he did not return calls last week. But in an e-mail to Kinunen that was posted on the Game-Used Forum, he said Inselberg was not the consigner. The shirt was one of the last items sent to MEARS and Allen blamed deadline pressures for the screw-up.

"I had gotten the message from my guys that you 'were not comfortable signing off on it' so I told them to go ahead and run it with the Lou Lampson letter since he was comfortable issuing an LOA on the shirt. Unfortunately we never received your 'letter' which explained the details of the name change and the reason you were not comfortable opining on the shirt. If I had known this I would have immediately pulled it from the auction," Allen wrote.

"The first time I had been informed about potential issues with the shirt was on August 2nd when a reporter inquired about the letter you issued. At the time I was not aware a letter detailing findings had been issued and I notified him of that fact. When I got back to the office after the National I was finally able to review your letter and review the concerns expressed on the Game-Used Forum."

But by the time Allen's E-mail had been posted on the Game-Used Forum, the FBI had already begun investigating the sale of the jersey. The bureau's Chicago office - whose "Operation Foul Ball" smashed a multistate autograph forgery ring in the '90s - has already interviewed an authentication-service executive and two collectors about the jersey, according to sources.

As the Daily News reported in July, Chicago-based investigators have already questioned Bill Brandt, the president of Development Specialists Inc., the company hired by the state of Ohio to liquidate coins and collectibles purchased with state money by Tom Noe, the Republican Party official convicted last year of stealing from a $50 million workers compensation fund and sentenced to 18 years in prison. Noe had purchased thousands of dollars worth of memorabilia from Mastro, Brandt and Ohio law-enforcement officials have said. The investigators have also questioned two hobby executives who asked not to be identified.

An FBI official said he could not confirm or deny an investigation is underway, but regardless of what happens, the incident has left a bad taste in some collectors' mouths.

"I saw this warm-up at the National and thought it was awesome," one collector wrote on the Game-Used Forum. "I was gonna have a friend bid on it for me ... thank goodness that I didn't."

mvandor
08-01-2008, 09:26 PM
One quote worth quoting:

"This needed to be done a long time ago.""

trsent
08-02-2008, 02:38 AM
Do the Feds think they can convict an auction house such as Mastro for selling item they know are not genuine? Won't they have to prove they knew of issues with the item or accepted a bad item or altered an item? I know they also brought up shill bidding, but won't the Feds have to prove Mastro knowingly did something wrong?

At the same time, if the Feds were looking for a company who has openly has bought "game issued" items and sold them as game used, isn't there an auction house out there that would fit this description and would be easily prey for them? Maybe an auction house that has a history buying on eBay and then altering an item to make it better or even game used for sale?

I know, Mr. Okeeffe has his lists who he doesn't like in our industry, but I think Mastro may be the wrong target if the Feds want to make a point there are better subjects.

jdr3
08-02-2008, 08:04 AM
Joel,

It appears from your post that perhaps you are not familiar with the Mastro controversy from last August. If you had read the article Eric had added just a few posts before yours, you would have a better understanding of the situation. Here is an excerpt:

To prepare for the live auction, Mastro employees sent the shirt and other items to Memorabilia Evaluation and Research Services, one of the hobby's leading authentication services. MEARS examined the shirt on July 1, and concluded that while it appeared to be a North Carolina shooting shirt from the 1980s, it did not belong to Jordan.

When the shirt was placed over a light table, it was apparent that another name had been removed from the back and replaced with "JORDAN." The letters also seemed to be made of different materials than other patches on the piece, according to the MEARS work sheet.

"The Michael Jordan shirt we evaluated did not start its life as a Michael Jordan shirt," MEARS authenticator Troy Kinunen said.

MEARS' opinion was seconded by the University of North Carolina; officials there told the Daily News that Jordan still has his warm-up shirt.

So here we have conclusive proof that Mastro did know that what they were selling was not what it was purported to be, which answers your first question, that the FBI DOES KNOW Mastro had fore knowledge that one of their items had been altered and still tried to cover this up and sell the jersey in question for $11,000. If defrauding someone out of that much money is not a crime, I don't know what is.

You mention that there are others the FBI should be going after. Can you name them, or have you tried to help fellow collectors by alerting the FBI to this situation?

-Jim Reed

allstarsplus
08-02-2008, 08:39 AM
Jim - You should be commended for the work and assistance you provided to bring this Jordan jersey issue to the Forum and possibly to a Court of Law!

You may have also read this week that the FBI solved the Anthrax case (almost 7 years later) so as they say, the FBI always gets their man.

Just the rumors of subpoenas should scare some people straight.

You have to love that the USPS was in tow as that interstate shipment case is much easier to prove.

Does anyone know if "LL" got a subpoena?

I spoke to my friend Bill Huggins of Huggins & Scott Auctions last night and he wasn't even aware that the FBI was at The National, and as I told him that doesn't surprise me as he is as honest as they come so they wouldn't be knocking on his door. As Bill is growing his game used side of the auction house, he is doing it the right way.

Here is my observation and opinions on 2 other auction houses that used to be mentioned here all the time in our "Hall of SHAMe". I think in recent years thanks to getting continually outed on this Forum they have slowly cleaned up their act, but the Feds can go back 3 years with the statute of limitations so they can spend hours, weeks and months using the Forum as a resource. Rudy's red circles make great fieldwork!

About a year and 1/2 ago I had a discussion about a Florida auction house with Federal Prosecutor Jay Trezevant. I wonder if that Florida auction house is part of a larger investigation that was being built against many in the industry.

You have to love this quote
"The FBI has been walking the convention floor," said American Memorabilia president Victor Moreno. "You can feel the tension."

cohibasmoker
08-02-2008, 09:51 AM
Do the Feds think they can convict an auction house such as Mastro for selling item they know are not genuine? Won't they have to prove they knew of issues with the item or accepted a bad item or altered an item? I know they also brought up shill bidding, but won't the Feds have to prove Mastro knowingly did something wrong?

At the same time, if the Feds were looking for a company who has openly has bought "game issued" items and sold them as game used, isn't there an auction house out there that would fit this description and would be easily prey for them? Maybe an auction house that has a history buying on eBay and then altering an item to make it better or even game used for sale?

I know, Mr. Okeeffe has his lists who he doesn't like in our industry, but I think Mastro may be the wrong target if the Feds want to make a point there are better subjects.

Joel, At this point, I don't think we can assume anything let alone assume there is just one target. We do not even know if the papers being served at the National are in fact subpoenas or a “target letter”. Has anyone actually seen any of the documents? We all have questions about the investigation and I am sure that all of our questions will be answered in the very near future.

With that said, I am sure the FBI is pretty far along in their investigation. Whatever the FBI is handing out on the National floor, either subpoenas or “target letters”, either of these documents may be an additional avenue to broaden their investigation or to simply dot their "I's" and cross their "t's".

However, if you have some additional information that may be helpful in the investigation, I am sure the door at the FBI is open and they would be more than happy to hear from you.

Jim

trsent
08-02-2008, 11:09 AM
Joel,

It appears from your post that perhaps you are not familiar with the Mastro controversy from last August. If you had read the article Eric had added just a few posts before yours, you would have a better understanding of the situation. Here is an excerpt:

To prepare for the live auction, Mastro employees sent the shirt and other items to Memorabilia Evaluation and Research Services, one of the hobby's leading authentication services. MEARS examined the shirt on July 1, and concluded that while it appeared to be a North Carolina shooting shirt from the 1980s, it did not belong to Jordan.

When the shirt was placed over a light table, it was apparent that another name had been removed from the back and replaced with "JORDAN." The letters also seemed to be made of different materials than other patches on the piece, according to the MEARS work sheet.

"The Michael Jordan shirt we evaluated did not start its life as a Michael Jordan shirt," MEARS authenticator Troy Kinunen said.

MEARS' opinion was seconded by the University of North Carolina; officials there told the Daily News that Jordan still has his warm-up shirt.

So here we have conclusive proof that Mastro did know that what they were selling was not what it was purported to be, which answers your first question, that the FBI DOES KNOW Mastro had fore knowledge that one of their items had been altered and still tried to cover this up and sell the jersey in question for $11,000. If defrauding someone out of that much money is not a crime, I don't know what is.

You mention that there are others the FBI should be going after. Can you name them, or have you tried to help fellow collectors by alerting the FBI to this situation?

-Jim Reed

Jim, please do not assume what I have or have not read. I am sorry I missed what you have brought to my attention. Your comments did remind me of an Atlanta Braves jersey I questioned Mastro about and was told that since I was not a registered bidder they would not answer my questions about this item that I couldn't style match. I believe there is a thread about this jersey I questioned somewhere on this forum.

I am sorry if I missed obvious facts that you have cleared up.

If I wanted to name any company I would have named them. If you look over the history of this discussion forum, a name may be clear to you.

Eric
08-02-2008, 10:24 PM
http://www.sportscollectorsdaily.com/latest/federal-agents-part-of-national-crowd.html

David
08-03-2008, 01:18 AM
Subpoenas are often given to witnesses and innocent people with info-- so being subpoenaed doesn't automatically mean a person did anything wrong.

Eric
08-03-2008, 08:10 AM
According to people at the national, the feds talked to all the major auction houses, authentication companies and many others...

Eric
08-03-2008, 08:40 AM
Feds swarm to question card sharks

BY MICHAEL O'KEEFFE
DAILY NEWS SPORTS WRITER

Saturday, August 2nd 2008, 10:15 PM

The same day Mastro Auctions sold a rare 1909 Honus Wagner card for $1.62 million at a sale held in conjunction with the National Sports Collectors Convention in Rosemont, Ill., federal agents investigating fraud in sports collectibles questioned employees of Professional Sports Authenticator, the hobby's top card grading service.

Also on Friday, investigators from the FBI and the United States Postal Service interviewed a former Mastro Auctions employee who is known to be a "card doctor," somebody who fixes dog-eared corners, removes stains, flattens out creases or takes other steps to improve the appearance of trading cards. Most collectors and dealers consider it unethical to alter cards.

"They spent a lot of time at the PSA booth," one sports memorabilia executive said.

Federal agents spent several hours Thursday, Friday and Saturday at the National, sports memorabilia's largest annual convention, issuing subpoenas to appear before a grand jury investigating fraud in the memorabilia business.

The agents' appearance at the show is part of an investigation into sports memorabilia fraud initiated last year by the Chicago division of the FBI, whose "Operation Foul Ball" smashed a multistate autograph forgery ring during the 1990s. The target of the investigation appears to be Illinois-based Mastro Auctions, sports memorabilia's largest auction house, although other businesses and individuals may also be involved.

The source said Bill Mastro, the company's chairman, looked cool and collected during the auction, held this year at the Chicago ESPNZone. "But (Mastro president Doug Allen) looked awful," the executive added. "I think all this is getting to him."

Allen and Mastro could not be reached for comment Saturday. Neither could Joe Orlando, president of PSA.

The fact that PSA officials and the former Mastro employee were interviewed by agents indicates that investigators are also interested in learning about "card doctoring."

Cards that have been trimmed, colored or repaired are tainted and worth considerably less than cards that have not been altered. The difference in the value of cards that have been altered and the same card that has not been doctored can be hundreds of thousands of dollars.

PSA was formed in 1991 to protect collectors from card doctors, counterfeiters and other cheats. But the company has been a lightning rod for controversy. Collectors and dealers say PSA inflates grades for cards submitted by big-volume customers such as Mastro Auctions.

The first card the company graded - another 1909 Wagner, at the time owned by NHL great Wayne Gretzky - had been cut from a sheet and later doctored, according to "The Card," a book by two Daily News reporters. The Wagner, which PSA graded an 8 (on a scale of 1-10) sold for a record $2.8 million last year, even though a former PSA authenticator has said the company knew the card had been doctored.

http://www.nydailynews.com/sports/baseball/2008/08/03/2008-08-03_feds_swarm_to_question_card_sharks.html

Vintagedeputy
08-03-2008, 10:46 AM
Feds swarm to question card sharks

BY MICHAEL O'KEEFFE
DAILY NEWS SPORTS WRITER

Saturday, August 2nd 2008, 10:15 PM

The same day Mastro Auctions sold a rare 1909 Honus Wagner card for $1.62 million at a sale held in conjunction with the National Sports Collectors Convention in Rosemont, Ill., federal agents investigating fraud in sports collectibles questioned employees of Professional Sports Authenticator, the hobby's top card grading service.

Also on Friday, investigators from the FBI and the United States Postal Service interviewed a former Mastro Auctions employee who is known to be a "card doctor," somebody who fixes dog-eared corners, removes stains, flattens out creases or takes other steps to improve the appearance of trading cards. Most collectors and dealers consider it unethical to alter cards.

"They spent a lot of time at the PSA booth," one sports memorabilia executive said.

Federal agents spent several hours Thursday, Friday and Saturday at the National, sports memorabilia's largest annual convention, issuing subpoenas to appear before a grand jury investigating fraud in the memorabilia business.

The agents' appearance at the show is part of an investigation into sports memorabilia fraud initiated last year by the Chicago division of the FBI, whose "Operation Foul Ball" smashed a multistate autograph forgery ring during the 1990s. The target of the investigation appears to be Illinois-based Mastro Auctions, sports memorabilia's largest auction house, although other businesses and individuals may also be involved.

The source said Bill Mastro, the company's chairman, looked cool and collected during the auction, held this year at the Chicago ESPNZone. "But (Mastro president Doug Allen) looked awful," the executive added. "I think all this is getting to him."

Allen and Mastro could not be reached for comment Saturday. Neither could Joe Orlando, president of PSA.

The fact that PSA officials and the former Mastro employee were interviewed by agents indicates that investigators are also interested in learning about "card doctoring."

Cards that have been trimmed, colored or repaired are tainted and worth considerably less than cards that have not been altered. The difference in the value of cards that have been altered and the same card that has not been doctored can be hundreds of thousands of dollars.

PSA was formed in 1991 to protect collectors from card doctors, counterfeiters and other cheats. But the company has been a lightning rod for controversy. Collectors and dealers say PSA inflates grades for cards submitted by big-volume customers such as Mastro Auctions.

The first card the company graded - another 1909 Wagner, at the time owned by NHL great Wayne Gretzky - had been cut from a sheet and later doctored, according to "The Card," a book by two Daily News reporters. The Wagner, which PSA graded an 8 (on a scale of 1-10) sold for a record $2.8 million last year, even though a former PSA authenticator has said the company knew the card had been doctored.

http://www.nydailynews.com/sports/baseball/2008/08/03/2008-08-03_feds_swarm_to_question_card_sharks.html


PSA has always walked on the dark side. I wouldnt use them if they were the only grading co. around.

Eric
08-03-2008, 09:57 PM
Fox news in Chicago filed a report from the national convention...

http://www.myfoxchicago.com/myfox/pages/Home/Detail?contentId=7126791&version=1&locale=EN-US&layoutCode=VSTY&pageId=1.1.1

whatupyos
08-03-2008, 10:56 PM
For anyone selling fake game used items or doctoring them they should be sent to prison for the rest of their life in my opinion.

trsent
08-03-2008, 11:04 PM
For anyone selling fake game used items or doctoring them they should be sent to prison for the rest of their life in my opinion.

Haha, that is funny.

What should they do to people who rob banks? Kill them?

34swtns
08-04-2008, 10:30 AM
For anyone selling fake game used items or doctoring them they should be sent to prison for the rest of their life in my opinion.

And they should kill the families of murderers, too. :rolleyes:

Dude, please......

whatupyos
08-04-2008, 11:25 AM
Hey, look, thats my opinion...I'm sorry you to libs have a more easy going manner, but I dont stand for anyone knowingly commiting crimes.

both-teams-played-hard
08-04-2008, 12:35 PM
Hey, look, thats my opinion...I'm sorry you to libs have a more easy going manner, but I dont stand for anyone knowingly commiting crimes.
I thought a person who used the screen name "whatupyos" would be a young man with baggy khakis and a ballcap with a flat bill. However you use the term "libs" like it means "jackball", "assmunch" or "numbnuts". Liberal is not an insult. Life in prison for altering a jersey? Yes, you are young...but getting old before your time.

Eric
08-04-2008, 04:59 PM
From Chicago Tribune

Sports memorabilia auction house under probe

Mastro Auctions in Burr Ridge hit with subpoenas at Rosemont convention

By Jeff Coen | Chicago Tribune reporter 11:35 AM CDT, August 4, 2008

Federal investigators have subpoenaed leaders of a local sports memorabilia auction house in an ongoing fraud investigation into possible "shill bidding" to drive prices up, sources confirmed Monday.

Executives of Mastro Auctions in Burr Ridge received subpoenas late last week at the National Sports Collectors Convention in Rosemont, investigators said.

Mastro made news over the weekend with its auction of a 1909 Honus Wagner (http://www.chicagotribune.com/topic/sports/honus-wagner-PESPT007633.topic) baseball card for $1.62 million.

The subpoenas were delivered beginning Thursday at the Rosemont show, the country's largest in the sports memorabilia hobby field, the sources said. Authorities declined to comment on the scope of the investigation.

Shill bidding involves the bogus rigging of bids during auctions to jack up prices.

A spokesman for the U.S. attorney's office in Chicago declined to comment.

A call to the executive offices of Mastro was not immediately returned.

jcoen@tribune.com (jcoen@tribune.com)
http://www.chicagotribune.com/news/local/chi-sports-auction-probe-aug05,0,2114795.story (http://www.chicagotribune.com/news/local/chi-sports-auction-probe-aug05,0,2114795.story)

RobSteinmetz
08-05-2008, 10:03 PM
Guys,

Let's not speculate on who did or did not receive subpeonas. Any posts that mention names of individuals or companies (beyond those shared in public articles), will be deleted.

Thanks,

Rob

Eric
08-06-2008, 12:39 PM
Here's another Chicago Tribune story...

Burr Ridge auctioneers subpoenaed in sports memorabilia fraud probe, sources say

Authorities said to be investigating possible 'shill bidding' to drive up prices on collectibles

By Jeff Coen | Chicago Tribune reporter August 5, 2008 There's a lot of money to be made in the sports memorabilia business, as shown by an auction in Chicago late last week in which a single baseball card sold for $1.62 million.

But it's not just collectors who have taken an interest in the buying and selling—federal agents in Chicago are looking into allegations of fraud, sources say.

The sources confirmed Monday that investigators handed out subpoenas to executives of Mastro Auctions at last week's National Sports Collectors Convention in Rosemont.

Authorities are said to be investigating possible "shill bidding" in which bogus bids are submitted to drive up the prices of collectibles.

Mastro Auctions, headquartered in suburban Burr Ridge, handled the $1.62 million auction of a rare 1909 Honus Wagner (http://www.chicagotribune.com/topic/sports/honus-wagner-PESPT007633.topic) baseball card Friday evening in Chicago. There was no indication that the card's sale is of interest to investigators.

Spokesmen for both the FBI (http://www.chicagotribune.com/topic/crime-law-justice/crimes/federal-bureau-of-investigation-ORGOV000008.topic) and the U.S. attorney's office in Chicago declined to comment on the existence of any probe.

Mastro Auctions, one of the biggest auction houses in the sports memorabilia business, did not return a call Monday seeking comment on the subpoenas.

Mastro is led by president Doug Allen and reported revenues of $45 million in 2006. On the company's Web site, Mastro bills itself as a premier choice for those seeking to sell memorabilia at auction.

"The level of ethics, credibility and service you'll receive from Mastro Auctions is second to none in the industry," the Web site says.

The National Sports Collectors Convention, billed as the largest in the country in the sports memorabilia hobby field, was held Thursday and Friday.

As part of the convention, Mastro auctioned off the Wagner card at the downtown Chicago ESPN (http://www.chicagotribune.com/topic/sports/espn-HOC792.topic) Zone and sold the 600th home run ball hit by Ken Griffey Jr. (http://www.chicagotribune.com/topic/entertainment/ken-griffey-jr.-PECLB002103.topic), who was traded to the White Sox (http://www.chicagotribune.com/topic/sports/baseball/chicago-white-sox-ORSPT000167.topic) last week.

The FBI exposed fraud in the sports memorabilia industry a decade ago. The nationwide probe, code-named "Operation Foul Ball" and centered in Chicago, resulted in the convictions of more than a dozen people in large part because of the undercover work of a former dealer.

That investigation revealed forgeries of sports stars' autographs on thousands of jerseys, other sportswear and equipment. Distributors were convicted of selling millions of dollars in phony collectibles, including basketballs and jerseys purportedly signed by Bulls great Michael Jordan (http://www.chicagotribune.com/topic/sports/basketball/michael-jordan-PESPT008489.topic).

At the time, authorities said the industry itself estimated that forgeries made up as much as 70 percent of the sports memorabilia market.

jcoen@tribune.com (jcoen@tribune.com)
http://www.chicagotribune.com/news/local/chi-sports-auction-probeaug05,0,7860148.story?track=rss

Eric
08-06-2008, 10:45 PM
posted here with permission from our friends at Sweet Spot

FBI: NO CHARGES, NO ARRESTS YET

August 6, 2008 -- Published reports have confirmed that subpoenas were issued last week to at least two auction houses at the 29th Annual National Sports Collectors Convention. The FBI office remains mum on the matter.

In an interview with Sweet Spot Tuesday, Ross Rice, spokesman for the FBI in Chicago, would neither confirm nor deny that subpoenas were served at the National, but added that "no arrests have been made and no charges have been filed in respect to show at Rosemont."

Rice added that "the only time we can discuss a subpoena is when an arrest has been made or charges have been filed." He explained that subpoenas would have a "return date" specifying when an individual is scheduled to appear or when other information is to be presented. No timetable has been made public for Mastro Auctions of Burr Ridge, Ill., and American Memorabilia of Las Vegas to appear before a Chicago grand jury. The nature of the subpoenas has not been disclosed.

However, other FBI sources told Sweet Spot that the federal grand jury can request that a person appear to answer questions or to present requested items, records or other documentation.

"The fact that a subpoena was issued means that prosecutors have discussed an investigation with the grand jury," the source said. Calls to the U.S. Attorney's office in Chicago have not been returned.

The issues that are believed to be the focus of the federal investigation involve "shill bidding" and "card doctoring." Shill bidding takes place when bidding activity is manipulated by someone who seeks to boost the bidding price. Card "doctoring," in the context of the memorabilia marketplace, occurs when the physical representation of a trading card is altered in a way that increases the value of a card. One of the most common ways to do this is to trim a card to give it a sharp, fresh edge or to make an image appear more centered on a card.

A source, speaking on the condition of anonymity, described numerous situations in which a card went into a grading company with a rating of a 6 out of 10 and came out as a 10. "I've seen cards graded as a 1, 2 or 3 mysteriously become improved and suddenly show the appearance of a 4, 5 or 6," the source said. "The difference in dollars in the marketplace can be tremendous when in fact the integrity of the card has been damaged."

The source claimed that Bruce McNall and Wayne Gretzky, owners of a rare, perfect Honus Wagner T-206 card from 1909 "knew the card was trimmed" when they paid $1.26 million for it in 1991. It subsequently sold for $2.35 million and again last year for $2.8 million.

The FBI's "Operation Foul Ball," dealing with fraud and the sale of forged autographs originating in Chicago, led to "Operation Bullpen," which led to the arrests of forgers, dealers and distributors out of the San Diego area. The scope of both investigations extended well beyond the field offices.

Other FBI activity led by Tim Fitzsimmons involved tax issues and fraudulent activity perpetuated by sellers on the Internet.

Fitzsimmons discussed the work of subpoenas as they pertained to the Bullpen. "We did some wiretaps in the Bullpen investigation," Fitzsimmons told Sweet Spot. "A precursor to obtaining a wiretap was a thorough analysis of the phone line we were trying to tap. This information ¿ the number of calls to whom and from whom, the length of those calls, as well as the time of those calls ¿ is what is typically obtained through a subpoena.

During the years Operation Bullpen culprits were investigated and prosecuted, the FBI was outspoken in giving consumers guidance in participating in a business often driven by impulse. Of course, it promoted caveat emptor, buyer beware, the maxim of all trade activity.

Fitzsimmons recalled the major points consistently made to the public. "When you purchase or sell merchandise that is not an authenticated item, in the sense that it was a witnessed signed item, the provenance, history, chain of custody, or however you wish to characterize it, is something that is extremely important and that information should be provided or asked for by the consumer.

"That's not to say that third party authentication doesn't have a place in the industry. We've been concerned, however, that when items are sold exclusively on third party authentication, without any provenance, we recommend that dealers provide that information. In Operation Bullpen, we prosecuted people setting up bogus authentication companies so they wouldn't have to provide provenance for the item. When you get serious about looking for that information that's how you're going to be able to tell what's real or fake."

Readers will find more about this topic in the October/November 2008 issue of Sweet Spot.
http://www.sweetspotnews.com/

metsbats
08-13-2008, 11:59 AM
The FBI is taking another look at possible fraud in the sports collectibles industry.
The Chicago Tribune reported Monday that federal investigators have issued subpoenas to officials at Mastro Auctions as part of an FBI investigation into shill bidding – the practice of an auction house or a consignor entering fake bids on an item in order to drive up the price – in the sports memorabilia field.

Meanwhile, the New York Daily News reported that investigators from the FBI and the U.S. Postal Service interviewed a former Mastro Auctions employee who has been suspected of doctoring trading cards to enhance their condition and appearance, thus making them more valuable. The paper also reported agents spent time at last week’s National Sports Collectors Convention speaking with representatives of PSA.

According to both publications, federal agents spent several days at the National, issuing subpoenas to a variety of individuals, requiring that they appear before a grand jury investigating fraud in the memorabilia business.

“This is part of an active federal investigation,” the Daily News quoted a source familiar with the probe. “I think they came to the National because they knew everybody would be here, all under one roof. It’s like shooting ducks in a barrel.”
Scott Fragale
Website Editor

Got this from the Tuff Stuff site via email to day.

FBI investigating Mastro for shill bidding and card cutting.


-David

Eric
08-13-2008, 07:35 PM
The blog "Sports Card Info" sent an email to Mastro about the recent news stories. Here's what they had to say
---------------------------------------------------------------------------------------------------------------------
Mastro Auctions Responds
Posted on August 11, 2008 by rosschrisman2003
A few days ago I sent an e-mail to the customer service department of Mastro Auctions. I asked them, “What does Mastro Auctions have to say about what happened at the 2008 National and the FBI showing up?” Today I got this response, “Andrew, At this time no comment, a statement will be made later this month.” I wonder what they will say in their statement? I can imagine that I’m not the only person that has sent them an e-mail asking what is going on.

http://sportscardinfo.wordpress.com/2008/08/11/mastro-auctions-responds/