Mastro: tick, tick, tick...boom!

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Posted By: Jeff Lichtman

Sounds like that bastard O'Keeffe really hates baseball cards today:
http://www.nydailynews.com/sports/2009/02/07/2009-02-07_at_mastro_auctions_check_is_in_the_mail.html

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Posted By: barrysloate

This O'Keefe doesn't miss a thing. Does he hang out in front of Mastro's office, taking in all the up-to-the-minute gossip?

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Posted By: Jeff Lichtman

Barry he's a reporter. That's what reporters do. They investigate and report.

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Posted By: Anonymous

They said replacement checks were sent out immediately. And wires if requested.

"sometimes a cigar is just a cigar"

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Posted By: marshall barkman

You know what is sad about this article but seems to be the norm in this country today is that almost all of the article is speculation. Why doesn't the reporter find out the total number of consigners which is easy, find out how many has been paid and how many has not and give us the breakdown. Let's say the entire auction did 1.5 million and 1.4 million is paid with 100,000 outstanding and the new checks have been sent then there is really no need for the article, on the other hand if the auction did 1.5 million and only 500,000 has been paid then there is a story and it should be reported.

It would be nice for once to wake up and read a positive article about stats and what takes place on the field or what positive things a company has done. I could care less who A-rod is F-ing or how many drinks he has the night before. Who cares about athletes private lives or their idealogy? What should be looked at is the stats and onfield performance.

In the immortal words of the great Ty Cobb "Let's talk baseball"!

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Posted By: Robert Klevens

I didn't even receive my consigment check yet.

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Posted By: Anthony N.

Haven't gotten mine either.

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Posted By: rand

are they in the investigation?

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Posted By: Joann

If the problem is that the checks were written from the wrong account, wouldn't it be a whole lot easier for Mastro to move the money from the right account into the account from which they were written in one transaction instead of rewriting individual checks? Couldn't they have just quietly covered it that way with no one the wiser (and no NYDN article)?

Why go a route that is not only more complicated, but also more public?

Accounts dedicated to certain transaction types so it's easier accounting at tax time? Seems that a one-time event of known magnitude would be easy enough to remember next April. Accounts of a nature that it takes time to move money in and out? Maybe, but is that any less onerous than rewriting checks?

Those are just wild off-the-cuff guesses. Calling all money managers to educate me on this one, because it seems to me that asking consigners not to cash checks already in hand would be at the very bottom of any list of options.

J

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Posted By: Fred C

The statement below could be construed in a couple of different ways:

"A lawyer contacted by an angry consignor, however, said company founder Bill Mastro told him the company had a cash-flow problem. Mastro sold the auction house in 2004 to SilkRoad Equity, a private investment firm."

It could mean that the auction house "cash-flow" problem can be stemming from the checks being written from the wrong account or that there is the traditional "cash-flow" problem. The reporter should be a lot more clear on this and not place quotes into an article that could be misconstrued, especially if it's a "hit piece" because the reporter is less objective because of a bias they may have.

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Posted By: marshall barkman

No one is going to buy a story that checks are written from a wrong account. Most con artists or fraudulant people always have a good story or excuse but that is just a out to cover up the truth. How can a company under federal investigation write checks from a wrong account? What needs to happen in the high end baseball card auction game is in order to clean it up then set reserves. No consignor wants to pay 10,000 for a card and then watch it sell for 7,500 so look at Sotheby's or any auction house that deals in valueable goods and you will see many items unsold for not reaching reserve estimates.

There would be no schill bidding or fraudualnt activity if the company did not have to protect the consignor or take advantage of a whale because the company insiders know who needs what cards and why. The whole situation is bogus and i attend at least 5 auctions a week and 90% of all auction houses no matter what the content is are unethical, i watched the moose on the back wall run a painting to 3,500 yesterday when clearly no one in the back section was bidding (lol), the poor bastard that was bidding sat in the front row and just held his bid card in the air and got hammered.

My last thought on the subject is why on earth would anyone send anything to Mastro knowing what happened at the National? You have countless other baseball card auction houses that are not under investigation.

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Posted By: rand

why is mastro so loathed? I agree with Marshall completely. its basically a throw down to shill a live auction, when the auctioneer is rambling a million miles an hour very few bidders can pay attention to him and see who else is bidding.

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Posted By: leon

That Mr.Anonymous guy sure has a lot of information.....

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Posted By: Steve

Wrong account could be a nice way of saying
closed account.

Steve

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Posted By: Jeff Lichtman

I'm sure Doug will come on here soon and clear it all up the way he used to come on and insist that Mastro was not involved in any kind of shill bidding or other fraud.

Right, Doug?

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Posted By: rand

Hey Jeff, why do you antagonize Doug so much on the board? you by alot of cards from Mastro, why risk getting banned by them? i have seen Doug giving interviews and on the mastro dvd's...he's a great guy and sincere.

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Posted By: Richard Simon

Maybe Jeff is looking for the truth and not worrying about his bids.
=

I refuse to engage in a battle of wits with an unarmed opponent.
Unknown author
--
We made a promise. We swore we'd always remember.
No retreat baby, no surrender.
The Boss

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Posted By: Jeff Lichtman

Rand, I'm just the kind of guy that likes to live on the edge...

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Posted By: Anonymous

Joann is correct in that oftentimes it is easier to just transfer the money over. But there are also many times this is not possible. Some examples are that the person able to sign for a transfer is unavailable, the account was closed because a signer on the account was terminated, separate accounts are used for differing auctions, etc.

Many legitimate reasons........but maybe where there's smoke there's first too!

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Posted By: John V

What happened at the National?

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Posted By: leon

I didn't see them but there were supposedly investigators from the FBI asking questions of a lot of people, at the '08 National. At this rate Obama might serve his 2nd presidency before we know anything concrete. I am sure that anonymous guy will have a lot more information though...He really gets around... regards

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Posted By: Richard Simon

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.

===

I refuse to engage in a battle of wits with an unarmed opponent.
Unknown author
--
We made a promise. We swore we'd always remember.
No retreat baby, no surrender.
The Boss

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Posted By: Frank Wakefield

Well I'm reading along in that up there, and then I read this...

"PSA was formed in 1991 to protect collectors from card doctors, counterfeiters and other cheats."


I don't believe it. I think PSA was formed to make money. Specifically, to make money from collectors who wanted help or reassurance as to the authenticity and condition of the cards they collected. It was about the money, not helping collectors. It still is.

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Posted By: boxingcardman

""[The FBI] spent a lot of time at the PSA booth," one sports memorabilia executive said. "

Ironic, considering that the marquee PSA card is altered.

Jeff, I love your post because I can't tell who you hate more, Mastro or O'Keefe.

Sic Gorgiamus Allos Subjectatos Nunc

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Posted By: Dan Bretta

Interesting comment below the fold on that story...what other company/companies has Doug Allen run before he came to Mastro?

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Posted By: Kyle

Thank Goodness we Still hace CCSA..........

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Posted By: Jeff Lichtman

Adam, I'm definitely more biased against the party that will owe me restitution (which I will never collect) at some point in the future.

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Posted By: Dave Hornish

"I don't believe it. I think PSA was formed to make money. Specifically, to make money from collectors who wanted help or reassurance as to the authenticity and condition of the cards they collected. It was about the money, not helping collectors. It still is."

Bingo!

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Posted By: JDRUM

like most companies, they were formed to make money.

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Posted By: rand

correct me if i'm wrong... who was it that said they discarded all auction bidding records after it closed? Jeff has a way with words, about collecting restitution, with no records, no proof.

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Posted By: marshall barkman

While we are on the subject of the FBI and the National here is a question that should be asked. Why are they at the National? It is the best show in the country and also most dealers have to do well at the show in order to have a profit for the year. Talk about a draggggg. Once the feds rolled up it was like watching a stripper take off her gown and then she is wearing a banana hammock. If i had a booth at the National and they rolled up asking questions i have four words for them TALK TO MY ATTORNEY! If they want to investigate PSA and Mastro then send agents to both company headquarters and get on with it. They put a damper on the show and brought a uneasy feeling which i know costs dealers alot of money.

Bernie Madoff rolls up 51 billion but the Feds are worried about a "card doctor" that used to work at Mastro and possible schill bidding. It is almost like someone shoots a guy at the street corner but the cop rolls by to nab the kid who is jaywalking.

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Posted By: Jerry

I hope the Grand Jury ask "The Spoon", how he got his nickname.

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Posted By: Fred C

Marshall,

The Feds probably figured it would be one stop shopping. Logistically, it would save time and money to question everyone in one location. Also, it allows them to question all parties and then go back for follow up questions with minimal delays.

Hey, if they have nothing to hide then there's nothing to worry about, right? Now about that Gretzky Wagner.... Maybe, just maybe we'll all get the final word on this living urban cardboard legend. To be honest, I can't wait. I don't want the hobby to take a kick in the butt on it but we might as well have the major players finally come clean about it. Better now than later... the sad part is that if the true story comes out a few people are going to lose a little credibility.

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Posted By: Alan

I am curious to see what happens when Jeff L. sees Doug Allen at the Net54 dinner. I better make sure I'm at that table

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Posted By: James Feagin

Perhaps Doug will thank him for his bids in previous auctions and for helping their bottom line?