02-24-2017, 10:52 AM
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Leon
peasant/forum owner
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Join Date: Mar 2009
Location: near Dallas
Posts: 36,327
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I wasn't defending the practice and I agree with you. I was only pointing out it has been being done for years. I am guessing CU has a few lawyers on retainer so I doubt it's illegal and I agree it seems like a conflict of interest to me too.
[QUOTE=BobC;1634834]
Quote:
Originally Posted by Leon
It has been done for years.
Go get a coin graded by PCGS and this is their top tier..$250 + 1% of value ..A 2 million dollar coin would be $20,250 to grade....
Leon, I'm not picking on you personally but, just because something has been done a certain way for years doesn't make it right, or mean that it should be continued.
Been a CPA my entire adult life and the only real thing a CPA does, that no one else can, is give their opinion about someone's financial information. The operative word is "opinion", which is all it ever is or can be. These financial statement "opinions" are done so owners/others know where they stand as far as the financial state of their businesses and affairs but, they are also extremely critical when people go to buy or sell companies in determining values and price for such transactions. Pretty much what a TPG does when they give an opinion on a card's grade so the owner knows what shape it is in, and can also use that opinion to assist in determining the value of it for sale.
As a CPA, I am bound by professional ethics and rules to act in a completely independent and ethical manner. I am strictly PROHIBITED from doing anything as a CPA on a contingency basis, which is exactly what giving an opinion on a card, and then charging someone for that opinion based not on the actual work performed but, the perceived value of the card, is! The reason a CPA is not allowed to provide a financial opinion based on a contingent fee is because if they did, they would no longer be considered "independent" of the people/company they were doing the work for in the first place. In other words, my "opinion" would be considered tainted due to my not being independent and the "opinion" would be deemed worthless.
The only reason we haven't held these TPG companies to similar standards is not their fault, it is the collecting community's fault in not demanding it of them.
BobC
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Leon Luckey
www.luckeycards.com
Last edited by Leon; 02-24-2017 at 10:53 AM.
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