Gernay, Oldridge, Horne Plead Guilty

[Eric]

Here's Sports Collectors Daily's coverage, including the plea agreements...
http://www.sportscollectorsdaily.com...y-fraud-cases/

[Eric]

From NY Daily News

http://www.nydailynews.com/sports/i-...ticle-1.980965

Memorabilia dealers plead guilty to selling counterfeit game-used jerseys to trading card companies

Memorabilia dealers plead guilty to selling fake game-used jerseys
BY MICHAEL O'KEEFFE
NEW YORK DAILY NEWS

Monday, November 21 2011, 7:25 PM

Three sports memorabilia dealers accused of selling bogus game-used jerseys to trading card companies and other collectors pleaded guilty to mail fraud on Monday in Illinois federal court.

A statement released by Patrick Fitzgerald, the U.S. Attorney for the Northern District of Illinois, says Bernard Gernay of Howell, N.J., Bradley Horne of Sunset, S.C., and Jarrod Oldridge of Las Vegas acknowledged that they altered jerseys obtained from retail outlets and other sources to make them appear to be used in games by pro athletes, substantially increasing their value.

The charges stem from a four-year investigation into fraud in the sports memorabilia industry that has been conducted by the Chicago FBI and other federal agencies. Executives from some of the most prominent companies in sports memorabilia – including Legendary Auctions, Grey Flannel, Professional Sports Authenticators and now-defunct Mastro Auctions – have been questioned at sports memorabilia shows in recent years.

Plea agreements filed in federal court on Monday say Gernay, Horne and Oldridge have agreed to provide information to investigators and testify in civil or criminal proceedings – which may mean that the dealers will be used by federal prosecutors as witnesses in cases against other memorabilia industry executives.

Sentencing is scheduled for May 2, 2012. The maximum prison sentence for mail fraud is 20 years.

Oldridge is the owner of JO Sports Co., a Las Vegas company that has contracts with the Jets and several other teams to sell jerseys, helmets, game balls and other memorabilia that were used in NFL games.

Gernay, Horne and Oldridge were among six dealers charged last month with selling counterfeit game-used jerseys to trading card companies, which cut them up to include swaths of cloth in high-end cards.

The defendants include Eric Inselberg, a New Jersey dealer linked to a North Carolina warm-up jersey sold at a 2007 Mastro Auction for $11,000. Mastro executives claimed the jersey had once belonged to Michael Jordan.

As the Daily News first reported, authenticators and collectors said the jersey was an obvious fake in the weeks leading up to the auction, which was conducted at the National Sports Collectors Convention in Cleveland.

Another defendant, Mitchell Schumacher of Wisconsin, was a target in Operation Foul Ball, an investigation into sports memorabilia conducted by the Chicago FBI more than 10 years ago. According to court records, prosecutors said Schumacher sold bogus game-used NBA jerseys to collectors. He pleaded guilty in 2000 to frauds and swindles and received three years of probation and was fined $30,000.

A Florida dealer, Bradley Wells, was also charged with mail fraud.

More than a dozen law-enforcement officers, led by a United States Postal Inspection Service agent, also arrested a Minnesota dealer, Steve Jensen of Vintage Authentics, at this year’s show at the Stephens Convention Center in Rosemont, Ill. A criminal complaint unsealed in New York federal court after Jensen’s arrest charged him with one count of mail fraud and one count of wire fraud. The feds said Jensen sold bogus game-used jerseys his company claimed had been worn by Alex Rodriguez, Mark McGwire and Albert Pujols.

[lakeerie92]

Probably should plan on locking this thread already. I can only imagine where it is going.

[joelsabi]

From NY Daily News

http://www.nydailynews.com/sports/i-...ticle-1.980965

Memorabilia dealers plead guilty to selling counterfeit game-used jerseys to trading card companies

Memorabilia dealers plead guilty to selling fake game-used jerseys
BY MICHAEL O'KEEFFE
NEW YORK DAILY NEWS

Monday, November 21 2011, 7:25 PM

Three sports memorabilia dealers accused of selling bogus game-used jerseys to trading card companies and other collectors pleaded guilty to mail fraud on Monday in Illinois federal court.

A statement released by Patrick Fitzgerald, the U.S. Attorney for the Northern District of Illinois, says Bernard Gernay of Howell, N.J., Bradley Horne of Sunset, S.C., and Jarrod Oldridge of Las Vegas acknowledged that they altered jerseys obtained from retail outlets and other sources to make them appear to be used in games by pro athletes, substantially increasing their value.

The charges stem from a four-year investigation into fraud in the sports memorabilia industry that has been conducted by the Chicago FBI and other federal agencies. Executives from some of the most prominent companies in sports memorabilia – including Legendary Auctions, Grey Flannel, Professional Sports Authenticators and now-defunct Mastro Auctions – have been questioned at sports memorabilia shows in recent years.

Plea agreements filed in federal court on Monday say Gernay, Horne and Oldridge have agreed to provide information to investigators and testify in civil or criminal proceedings – which may mean that the dealers will be used by federal prosecutors as witnesses in cases against other memorabilia industry executives.

Sentencing is scheduled for May 2, 2012. The maximum prison sentence for mail fraud is 20 years.

Oldridge is the owner of JO Sports Co., a Las Vegas company that has contracts with the Jets and several other teams to sell jerseys, helmets, game balls and other memorabilia that were used in NFL games.

Gernay, Horne and Oldridge were among six dealers charged last month with selling counterfeit game-used jerseys to trading card companies, which cut them up to include swaths of cloth in high-end cards.

The defendants include Eric Inselberg, a New Jersey dealer linked to a North Carolina warm-up jersey sold at a 2007 Mastro Auction for $11,000. Mastro executives claimed the jersey had once belonged to Michael Jordan.

As the Daily News first reported, authenticators and collectors said the jersey was an obvious fake in the weeks leading up to the auction, which was conducted at the National Sports Collectors Convention in Cleveland.

Another defendant, Mitchell Schumacher of Wisconsin, was a target in Operation Foul Ball, an investigation into sports memorabilia conducted by the Chicago FBI more than 10 years ago. According to court records, prosecutors said Schumacher sold bogus game-used NBA jerseys to collectors. He pleaded guilty in 2000 to frauds and swindles and received three years of probation and was fined $30,000.

A Florida dealer, Bradley Wells, was also charged with mail fraud.

More than a dozen law-enforcement officers, led by a United States Postal Inspection Service agent, also arrested a Minnesota dealer, Steve Jensen of Vintage Authentics, at this year’s show at the Stephens Convention Center in Rosemont, Ill. A criminal complaint unsealed in New York federal court after Jensen’s arrest charged him with one count of mail fraud and one count of wire fraud. The feds said Jensen sold bogus game-used jerseys his company claimed had been worn by Alex Rodriguez, Mark McGwire and Albert Pujols.

thanks for the update.

What interested me was that the three dealers might be used by federal prosecutors as witnesses in cases against other memorabilia industry executives. So it seems this is not the end of the FBI investigation to clean up the game used memorabilia industry.

How about the authenticator of the jerseys that were sold by Jensen? Wonder if they will be held accountable too.

[both-teams-played-hard]

The defendants include Eric Inselberg, a New Jersey dealer linked to a North Carolina warm-up jersey sold at a 2007 Mastro Auction for $11,000. Mastro executives claimed the jersey had once belonged to Michael Jordan.

This story was reported and investigated by this very forum, before the NY Daily News story.

[both-teams-played-hard]

cut and pasted from the Sports Collector's Daily article:

"When game used jerseys were purchased for this purpose, the manufacturers often required that the seller provide a "certificate of authenticity" that the jerseys were authentic game used jerseys."

It is well documented on this forum, by seasoned collectors that a letter of authenticity isn't worth much. What criteria does a card company use to validate the writer of one of these "so-called" letters? I think the card companies deserve to be investigated by the Feds. At least a "cease and desist" on jersey cards is in order.

[xpress34]

So, now that there is PROOF that Jarrod is GUILTY of the charges - here's his Plea Deal:

JO Plea Agreement

Will GUU and Chris Cavalier BAN him from the board?

This was THE question in the previous discussion and Mr Cavalier's response was always the same - 'No one knows the charges... he is still innocent until proven guilty (even though the fact he made a plea was verified ad nauseum)...GUU will provide him a forum to state his case...' - etc.

Again, I have NO DOG in this fight as I am a Baseball Guy - no football - but a crook is a crook is a crook, no matter what sport he is selling when it comes to the GU hobby.

It also appears that even though Mitch Schumacher was trying to make a Plea (Criminal Information as well), the Feds have as yet to reach a Plea Deal with him - maybe because of his past:

In addition to Oldridge, Horne and Gernay, Wisconsin resident Mitchell Schumacher was also charged by information with mail fraud. No plea deal involving Schumacher was announced. He pled guilty to frauds and swindles as part of Operation Foul Ball in 2000 and received three years of probation and was fined $30,000.

It's possible the Feds are going to hit him harder because of his past involvement in the same crime.

I hope this thread is NOT locked as it should provide some lively debate - I'm sure there are still 'players' here who will defend JO and still buy from him before his sentencing next year.

Happy Thanksgiving!!!

- Smitty

[schubert1970]

I expect an apology.

[xpress34]

I expect an apology.

I wouldn't hold my breath. When I mentioned that I felt a few people owed some other past members apologies over the Mitch Schumacher debacle I was told quite bluntly that it would not happen.

On a different note - and one that might get me banned (what with the current tempermant around here) - I was reviewing the old thread (that got Lokee banned) and while not pointing fingers, I still find it interesting (and I stated this before in a post that was immediately deleted) that the C to C forum is 'capped' at $500.00 AND, you can't list your item for sale ANYWHERE else or your C to C listing will be removed.

However, if you are a 'friend of GUU' (such as Steiner, JO, etc) you may make special 'offers' to GUU members to buy items from you that far exceed the $500 cap AND you can still list the item elsewhere... my original post was in response to the 'spam' eMail I received about a 2010 Giants WS Jacket being offered to 'members' of GUU for ONLY $1,000 for a 'friend' of GUU.

Per the RULES of the FORUM:

4. No Advertising or Website Promotion. Please do not post any messages anywhere on this site that are primarily for the promotion or advertising of any website, item for sale (other than in the 'Collector to Collector Classifieds' section as per its rules), forum, email address, business, multi-level marketing activity or other entity without prior approval from Game Used Universe. (Has any 'member' here ever gotten approval or just 'friends' of GUU?)

5. No Spamming. You will not mass-email multiple members of this site the same message.

While the above may seem to be taking the train off the tracks on this thread, it is in actuality a very 'to the point' statement about the 'special treatment' JO received here as a 'seller' and still received (or may be receiving - that has yet to be seen) through this current legal issue.

I will wait and see what becomes of this post and my comments, but I stand behind them 100% until someone can show me PROOF that their is not an inequity here between the perceived 'members' of GUU and the perceived 'friends' of GUU.

Just my .02

- Smitty

[schubert1970]

Chris, I'm pleased to know I have your attention. Allow me to respond to your
comments.

The only thing I "claim" to have is having been blessed with the great gift of
common sense. Who cares what the "details" are about JO Sports and their
fraudulent distribution of junk mixed in with a few great photo-matched jerseys.
All I know is they have been charged with FRAUD by the feds and are apparently
plea-bargaining their way out of prison time. The details we have all received
in bits and pieces just don't matter. Indictments, plea deals, they do.

I am not here to speculate on where the disconnect is with you, jhunt28, Pale
Hose For Life, 34swtns, or any of the others who can't see it's daytime when the
sun is overhead. But all I can say with certainty is, there is a disconnect. JO
Sports has duped a lot of people into believing they are honest and are
operating with the utmost in integrity. That just wasn't the truth. I don't need
"details" to understand that. They got you, a lot of members here, many NFL
teams, and the list goes on. They have really done a number on many. They abused
their perceived "integrity and honesty".

If you guys in support of JO can't understand that you are all supporting a
criminal with your stances and comments, then why should any of us bother to try
to enlighten you? If you screw a brand new light bulb into a broken socket, that
light will still not go on. This is not a matter of opinion, this is a matter of
common sense. And I have to say I am shocked that you have taken the position
you have Chris. After we have a federal indictment or statement naming guilty
parties, displayed in a news release for all to see, aren't we past the point of
"innocent until proven guilty" and all that "benefit of the doubt" nonsense?

However, a much more serious issue again comes to mind. If the members mentioned
above are so reckless and non-caring for their fellow collectors as they have
displayed with their own words, stating that if your a newbie, don't do your
homework, don't photo-match the jerseys before you buy, then you're basically a
loser, all the while supporting an outfit and his owner who have been charged
with fraud, then why haven't they been banned? Is this position in line with
your stated claim, "Further, GUU has always stood for honesty and integrity and
remains committed to doing so going forward." And let's not forget "Personally,
I think it is important to let JO make any statements at this point rather than
speculating like some of the other members are doing. Notably, GUU will remain
available as a forum for Jarrod to respond."

Personally, I think that crosses the line of honesty and integrity. The guy's
been identified as a crook! Why should he have the right to come here and lie
some more?? What part of this am I missing?

Giving a forum to a guy who's been publicly placed in the "slammer" (meaning of
public opinion, a colorful figment of speech, not literally, at least yet) by
naming him as one of six having been arrested for fraud, is not what I would
want a forum I am a member of to stand for. So let me see if I got this
straight? Allowing a plea-bargainer to federal charges of fraud against some of
us here who utilize this forum, to post his view after being exposed as one of
the guilty parties, is your way of promoting integrity and honesty on the GUU?

The bottom line is this, Chris. If you aren't sure of the exact charges against
him and JO Sports, when the crimes occurred (before or after team deals, like
that matters?), or why some of us here just completely disagree with the
position you have taken and the conflicting signs you put out there in your
actions regarding matters of this kind, then maybe you place your money where
your mouth is. It's time you call up your friend Jarrod and ask him flat out
what happened and supply us with some answers. After all, he is your business
associate. Aren't you entitled to know what happened, especially in light of the
fact he tarnished you and your reputation in the industry, using his
relationship with you to fraudulently distribute garbage to members here, other
collecting public members, other distributors, Uncle Jed, Darth Vadar, and
anyone else who collects? If you really are here to display integrity and
honesty, why not start by showing both to the people you are supposed to be
helping. Us. I would argue Jarrod, at this point, is not one of them.

And I still would like to hear your explanation as to the different directions
you head in your handling of wrongdoers on the forum. There is a pattern of
biased decisions that I asked you about. Please explain why guys you have some
kind of a relationship with, such as Steinmetz and JO Sports, seem to get
obvious assistance they really don't deserve given the evidence against them,
yet someone you don't have any ties to get's the heavy hammer of Thor heaved
into their head?

As a member of this forum in good standing, I want to see you do the right thing
and ban JO Sports immediately from this forum. Because personally, I don't care
where jhunt28, 34swtns, or Pale Hose for Life gets their football jerseys from
in the future. They can always find another fraudulent company to buy from.
They're all over the place, and often assisted right here!

Thank you for exercising your promise of no repercussions to us posters who
share what we know.

Bill