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Old 11-30-2012, 04:59 AM
WhenItWasAHobby's Avatar
WhenItWasAHobby WhenItWasAHobby is offline
Dan Marke1
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Join Date: May 2009
Location: Houston-area
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Here is an excerpt from the original indictment. As I read it regarding cards, they allegedly misrepresented the sale of the Wagner PSA 8 from a prior time. So I don't believe it was the doctoring of the card itself that's the problem, but marketing the sale of the card at a later date that's the issue.

Another issue is that they allegedly knowingly sold doctored cards and sold them without disclosure of the alterations and advertised that they would not sell cards without disclosure of the alterations. It would be very interesting to know if these cards were professionally graded and to what extent this was a problem and if there will be any way of "recalling" these cards to make restitution to the current owners of these doctored cards.



False Representations Regarding Authenticity and Condition of Items

10. It was further part of the scheme that:
a. The Code of Conduct promulgated by in 2007 made the following representations, among others, regarding Mastro Auctions’ practices concerning disclosure of information that items sold at its auctions had been altered or restored:

i. If Mastro Auctions believed or had knowledge that an item
has been altered in any way, that information would be fully disclosed in the auction catalog.
ii. When, on occasion, Mastro Auctions had items restored in order to improve their presentation, the extent and nature of any restoration would be fully disclosed.
iii.
Under no circumstances would Mastro Auctions have restoration work done on trading cards.
b. After the Code of Conduct was published:
i.
Defendants MASTRO, ALLEN, and others knowingly did not disclose to bidders material information about alterations of items sold by Mastro Auctions.
ii. Defendants MASTRO, ALLEN and others knowingly did not disclose to bidders the extent and nature of restoration work performed on items sold by Mastro Auctions.
iii. Defendants MASTRO and ALLEN, along with others associated with Mastro Auctions, caused restoration work to be done on trading cards sold by Mastro Auctions, and knowingly failed to disclose that work to bidders.
11.
It was further part of the scheme that in marketing materials distributed on behalf of Mastro Auctions, which were intended to portray Mastro Auctions to potential bidders and consignors as a premier seller of valuable items for which a strong market existed, defendant MASTRO represented that Mastro Auctions had sold the most expensive baseball card in the world, a Honus Wagner T-206 card. In making this representation, however, defendant MASTRO knowingly omitted the material fact that defendant MASTRO had altered the baseball card by cutting the sides of the card in a manner that, if disclosed, would have significantly reduced the value of the card.
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Last edited by WhenItWasAHobby; 11-30-2012 at 09:22 AM.
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