My understanding is that Mastro has sued Forman (not SGC) claiming that he owes Mastro around $400,000. They claim he was the winning bidder in some of their auctions and has not paid. Normally, an unpaying bidder would cause minor problems. They'd just offer the lots to the underbidders and sue for the difference. Or, they would put the cards up in the next auction and sue for the difference. This time is different.
Apparently, Mastro did not hold the lots for payment, but shipped them out to Forman.
Forman has several counter claims including that he was shill bid on the lots and that Mastro has not netted out his bill against money they owe him.
Mastro also has other suits going against other non-paying bidders. They claim these lack of payments have led to their inability to pay consignors due to cash flow issues.
Again, this is my understanding only. Several on this board have more detailed knowledge of the situation. If my understanding is incorrect, please drop me an email and I will correct it.
Last edited by Jim VB; 08-06-2009 at 09:27 AM.
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