An Open Letter to Bill Mastro

[HRBAKER]

Originally Posted by perezfan

Hunt's is simply exercising a hidden reserve. Since the auctions are live, the "phantom bidding" is the only way to get the item to meet the consignor's minimum. I can see how it is frustrating for the "real bidder", but it is just an alternate way of establishing a minimum bid amount.

Isn't an alternative way of establishing a minimum amount to set the reserve from the outset? As opposed to having an illusory auction process taking place up to the minimum.

[Giants00]

Also, lets remember what Mastro has plead guilty to doing (vs maintaining a minimum bid). He has said he altered materials and lied about it, he has admitting to shill bidding (when there was no minimum and he just felt like the item was too low), and he admited to mail fraud. What he did (particularly on high pieces) was to control the authentication, the pricing and supply. It was done clearly in a way which has violated the law. What you saw early on was that he was contrite and that he was religious. What has come out in the comments to the thread I have posted and in his defense, is that he is defiant and not contrite. He has now claimed his crimes were victimless because everyone made money.
While we may not like the practice of having hidden reserves, it is commonplace in auctions and fully disclosed. What Mastro has confessed to is staggering. The fact that he is posting in comments sections claiming no remorse and that the collectors made money so his crimes are excused is frankly lurid.
I think the major auction houses no longer think like this. My sense is that if there is a hidden reserve it is set at the beginning of the auction. I think most auctions no longer look at the highest price bid and thus remove temptation. We now have disclosure when an auction is selling its own stuff. In general, in most auctions, authentication is separated from the auctioneer. Is it perfect, no. But it is much better than being in a rigged system.

[Giants00]

http://www.sportscollectorsdaily.com...ts-sentencing/
Another good story. Mastro's justification is that he was bidding for himself, yah right. He also destroyed records.
Again, if he was contrite I shut up. He is not contrite. He is still justifying his crimes and trying to berate the victims. Way to go Bill.

[perezfan]

Originally Posted by HRBAKER

Isn't an alternative way of establishing a minimum amount to set the reserve from the outset? As opposed to having an illusory auction process taking place up to the minimum.

Yes, you are correct. But I think Hunt's thought process is to get more bidders involved by starting the lots low. I think they believe this method will ultimately drive the price higher. I don't love it either...