Conflict of interest? Yes, but it seems like the market and collectors have a nice way of dealing with that by applying a discount to BVG cards.
For example, I bought a BVG 3.5 T206 Cobb "Bat off Shoulder" for about $721 last year. A PSA 3 Cobb sold for $1100 at the time. I was happy to pick it up and cross it over to an SGC 40. I wondered why the auction went for so low, but I suspect it may be that people don't trust Beckett auctions or Beckett grading because of this conflict of interest, so they bid less. You'll always be safe if you buy the card, not the holder.
