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Kevin Keating responds to shill bidding allegations
As some of you may know, though I rarely post comments, I am a Net 54 member and often read its discussions—especially regarding autograph-related topics. And hearing now that Doug Allen is sentenced, I would like to address the conversation of me which has taken place here over the last several days.
Exhibit E (“EE”) lists me as a “shill bidder” on 38 different Mastro-Legendary (“M-L”) lots during the period from December 2007 - February 2009. Despite what it says, the document’s assertion that I was a shill bidder is categorically untrue. I have NEVER shill bid in a Mastro auction, Legendary auction, or any other auction. There was, however, a reason why the government included my name in relation to those items. Here is what happened. On six occasions from 2007-2008 M-L paid me to authenticate autograph material consigned to their auctions. Sometime during or before this period, M-L auctions instituted a written code of conduct (“COC”), see: http://www.sportscollectorsdaily.com...de-of-conduct/ According to paragraph 2 of its COC, M-L violated its own rules by accepting bids by me, one of its authenticators, on items they knew to be consigned by M-L or another party as defined in paragraph 2. This violation applied to the 38 lots in question, all of which I had bid on to win (succeeding on six), and all of which I am told were owned by an entity defined in COC, paragraph 2. Until the release of EE, I never knew the identities of the consignors of those items, or that my bid on any of those lots constituted a violation of any M-L rules. And I also did not know until last week that M-L was obligated under its COC to prohibit me from bidding on those lots. The U.S. Attorney’s Office has confirmed that it has absolutely no evidence that I shill bid on any item, and that these 38 lots were added to EE because M-L violated its own publically released rules (COC, paragraph 2) by their acceptance and inclusion of my bids on items they knew were owned by M-L, a M-L employee or a M-L affiliate – and not because of any wrongdoing by me. Despite my desire to release this statement before now, I wanted to allow the final proceedings in the criminal case to conclude first. And it is my understanding that those ended today with Doug Allen’s sentencing. I cannot speak to any situation but my own. But if any of you have questions regarding this matter as it relates to me, please post them here and I will do my best to answer them. --Kevin Keating |
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Kevin Keating's story speaks for itself, and he doesn't need, nor has he requested, any support from me. The reputation he has established during his 30 years as a major player in the hobby/industry is the greatest testimony possible as to his honesty and integrity. But having set up at shows with Kevin since 2004, and having conducted numerous deals of all kinds with him over the past 25 years, I'm happy to say that I have never seen or heard of a single instance in which he could be said to have done something dishonest or unethical. There's no doubt in my mind that everyone on this forum who has done any business with Kevin would say exactly the same thing about their experience with him and his business, Quality Autographs. If anyone has a disagreement with that statement, let's hear about it. It's always bothered me when someone posts to the effect that the entire business is dirty, corrupt, and dishonest. There is plenty of that, to be sure, just as in any arena where lots of money is at stake, and we need to do everything we can to clean up that part of it. But there are also lots of honest, hard-working people in this hobby, more than just a few, and Kevin is one of those.
And that brings me to the specific topic of the court exhibit E and it's list of supposed shill bidders. Based on Kevin's experience, clearly the methodology used by the U.S. Attorney's office to compile these names was not foolproof, and pulled in at least one individual who was doing nothing of the sort. So that begs the question: what can we say about the others on the list? In trying to make sense of what I see there, I would put the transactions listed in five categories: 1) Mastro consignments (including by "straw" companies and individuals) that were bid up by Mastro employees and direct associates. These are the most obviously fraudulent transactions. 2) Non-Mastro consignments bid up Mastro employees or direct associates. These can also be easily understood as an attempt to drive up the bidding and therefore the premiums collected by Mastro as a percentage of the hammer price. 3) Mastro consignments bid up by individuals NOT directly employed by or associated with Mastro. This is the group in which Kevin was included erroneously, so it needs to be determined which of these individuals were actually working on Mastro's behalf to shill bid, and which were not. It would also be instructive to know why these individuals were conspiring with Mastro for his benefit. What was the deal for them? 4) Non-Mastro consignments shill bid by individuals not associated with Mastro. There are instances on the list in which the same individual places bids on many or all of another individuals consignments. On it's face, this would seem to be a matter of consignors, not being able to bid on their own lots, having friends or associates shill bid for them. This brings up several questions, including a) was Mastro complicit in this consignor strategy, with higher premiums for them, or did these consignors act on their own? And b) what are the legal and ethical implications for the consignors, in both instances of conspiracy with Mastro or acting on their own? 5) There are numerous instances on the list that don't fit the patterns above for one reason or another, and which need to be explained so the individuals named don't get unjustifiably tarred with the same brush as the ones whose actions were illegal or unethical. It doesn't make sense to me that many individuals listed as shill bidders on a lot or two or several were involved in any kind of conspiracy with Mastro or with the consignors to drive up the prices on those lots, so what's the explanation for their inclusion on the list? In general, it seems that, for the good of the hobby and of the individuals named, a complete accounting and explanation for every transaction listed is the only way, now that this list has seen the light of day, to distinguish between the good, the bad, and the ugly, so that we can all derive the benefit of that knowledge and move on from this tawdry affair. I must say I am surprised that many individuals named on the list have not taken the opportunity afforded by Net54 to explain their inclusion on it. Surely, Kevin Keating can't be the only one whose reputation has been tarnished unjustifiably by the publication of this information. It also seems incumbent on the U.S. Attorney, whose office is responsible for the unintended release of this document, to now come forward with an explanation for all of the information it contains. Last edited by Hankphenom; 02-08-2016 at 12:06 PM. |
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I wonder if this is the reason that all of the authenticators from PSA and SGC will give on why they are on the list.
It's amazing how when someone's name is on a list like in the other thread, they are absolutely hammered like the authenticators from PSA and SGC, but when the accused give a valid reason, you can hear birds chirping. It reminds me of when newspapers get an article incorrectly accusing someone of improprieties, it is on the front page, but if they are found to be incorrect, the retractions are hidden in some small print hidden in the paper. Another thing about these threads is that Leon has allowed it to be kept open, so anyone on the list can respond and declare their innocence (like Rob L, and Kevin here). However, if everyone knows that the people on the list have read the thread and know they are on the list, but they don't respond, the assumption is going to be that they are guilty. So the OP did state that Doug Allen was sentenced today. Anyone know what the sentence was? |
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I've often said a newspaper's corrections should appear in the same spot/page where the original story appeared.
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Just so I understand-Kevin placed bids on 6 lots that he authenticated. Since this violated the COC of the auction house, which he claims he was not aware of, he was determined by the courts to be a shill bidder on all lots he placed bids on, even ones that he did not authenticate for the Auction House? I am not trying to judge what he did as right or wrong-just trying to understand what he is claiming.
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[REMOVED] This forum is done.
Last edited by bcornell; 06-21-2016 at 10:35 PM. |
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regardless, it is a very interesting twist and I look forward to the members of this great forum poking holes in every statement. I also eagerly await every other accused to find a way to weasel into this same category (having an affiliation with M-L).
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... http://imageevent.com/derekgranger HOF "Earliest" Collection (Ideal - Indiv): 244/342 (71.4%) 1914 T330-2 Piedmont Art Stamps......: 114/119 (95.8%) 1923 V100 Willard's Chocolate............: 177/180 (98.3%) |
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Edit: It was his post in the original thread. Tom C Last edited by btcarfagno; 02-08-2016 at 01:01 PM. |
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Looking for Nebraska Indians memorabilia, photos and postcards Last edited by slidekellyslide; 02-08-2016 at 01:02 PM. |
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Keen eye and exactly right. Nice pick up there. No way he typed his post within seven minutes of the OP. No way sir.
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Correct. Hank addresses this in post 18 on this thread at 2:30 today.
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You can't write fiction this good. Prepared response, what's next? Good catch David.
Last edited by Jason; 02-08-2016 at 09:45 PM. |
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I dont know you but I do know you have been around a long time. So for me it would go a long way if as you say, or was this a copy and paste " The U.S Attorneys office has confirmed that it had absolutely no evidence that I shill bid on any item" How do you know that? Did you call them and had a conversation with someone at the attorneys office saying so? Do you have a letter in writing sent to you that says You did nothing wrong and if so will you show the letter on net54? Is there some other way Im missing that you have been sent this info? email? Text? But if this is just he said she said stuff that you have proven nothing. sorry but doesnt fly with me show the proof than maybe others will believe you... Maybe then you should try and do what I have suggested that way its crystal clear to all.. Al S!@eo ne
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The speed of light is faster that the speed of sound that is why some people appear bright until you hear them speak. Trying is the first step towards failing, and failing is the first step towards success! Life's lessons cost money Some lessons cost a lot.. Last edited by batsballsbases; 02-08-2016 at 05:38 PM. |
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This is NOT directed at Kevin. But wondered, will anyone on "the list" actually come on here and state they're guilty and had a good run while it lasted? NO! However, anyone not commenting in any fashion will cast a shadow imo.
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Rich@rd Lap@int |
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Well, at least one shiller/seller combo has already admitted what they did in the big thread.
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Yes, he was put on the hot seat more than I expected. And does deserve credit for coming forth.
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Rich@rd Lap@int |
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Kevin,
In post 20 I asked you a few questions, Its been an hour and a half since I asked. I know you have read it and as you say in Post 1 " But if any of you have questions regarding this matter as it relates to me please post them here and I will do my best to answer" WELL?
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The speed of light is faster that the speed of sound that is why some people appear bright until you hear them speak. Trying is the first step towards failing, and failing is the first step towards success! Life's lessons cost money Some lessons cost a lot.. |
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I don't know Hank, but like many of you I received the email from Kevin. I don't know Kevin, but have met him a number of times and have followed his business for many years. I have never heard a bad word about the guy other than people disagree with his pricing. I have never heard anyone say anything about his integrity and I have never seen him associated with a "bad" autograph. His explanation sounds completely legit and waiting to release a statement when he knew the facts is exactly what I would have done if in that situation. Bottom line, count me as one who believes him. Nuff ced. Jason
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Actually, I believe him. No being smart. If he didn't know, then he didn't know. But, let's test this. Are there any authenticators out there that bid on items they have worked? Or, is there an understanding that family and friends are excluded from bidding on items. Not trying to hang him just want some others to verify the standard practice. |
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no dog in this fight and no clue about keating's past/present/future.
couldn't even pick him out in a line up. furthermore, i have taken absolutely zero time to look at who consigned the items in which he is listed as shilling and if there is any relation. and if i did, i still wouldn't be able to tell you jack schmidt... however, if he is an authenticator (apparently autographs?) wouldn't that tend to give more him more credibility to his authenticating skills? who would risk getting stuck w/ some items that didn't pass muster? i could only imagine being such and looking at some of the remarkable sh!t that came across my desk. it'd only be natural to want some of that stuff.... again, i'm an idiot. i'm sure there are several hole punchers that can poke holes in my thought process. please, do your best... this is no excuse for not knowing the rules however, it appears as the rules and even laws were the last thing on the minds of maestro/allen and they certainly weren't going to enforce them. still "rules is rules" though. |
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I wouldn't bid on anything I authenticated for an auction house, but that's my personal rule. However, I'm not a dealer or even a collector, so it's not a hard rule to follow.
It does, however, say something if an authenticator is willing to buy what he okayed. Last edited by drcy; 02-08-2016 at 09:11 PM. |
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Kevin,
You say you did not know about the COC rule until last week. Who informed you of the COC rule, the government? And if the government knew about the COC rule and that you did no wrong, why did they include your name on the list in the first place? |
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When was the last time our government got involved in anything that they didn't screw up? That question is why I never posted in the thread about Leon's P&S. It is also the same question that kept me from posting in the shill list thread. |
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Thanks for your question. In short, yes, the government told us last week about the code of conduct (COC) and the fact that the inclusion of the 38 lots with my name was the result of Mastro-Legendary's violation of its COC, paragraph 2--which Mastro-Legendary was obligated to enforce. Had they enforced that rule, then my bids should have been prohibited; and had my bids been prohibited, then the end result, i.e., end sale price would not have been as high as it was for those lots (same impact as a shill bid) -- and so, for purposes of determining "loss values", which I am told was the purpose of Exhibit E, the end result -- a higher price to the buyer -- is the same whether the bid is shilled or a prohibited bid (like mine). But, 1) owing to the purpose of Exhibit E -- to assess the monetary damages to lot winners/buyers -- and 2) the fact that the document was intended for internal use only for the court (and not to be released), no distinction was made on the list between shill bids and bids like mine -- or at least the bids I made on those 38 lots which M-L should have prohibited ( I can't speak to bids assigned to others). It is my understanding that document EE is now redacted, but I'm not positive on that. Also, I did just issue a more lengthy post which I believe also answers your above questions and in more detail, too. But if not, or if you have others, please pass them on and I'll do my best to answer them. Thanks, David--Kevin K. |
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Higher prices make the authentication company look better. Given all the people who shilled the Mastro auctions for monetary gain, I don't understand why it is implausible that TPA employees would shill up their company's authenticated items for the same reason.
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$co++ Forre$+ |
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I think the entire authentication and grading aspect of the hobby is messed up on many fronts, which is why I don't participate in that. I used to write a few LOAs here and there (not suggesting there was great demand) and almost solely for collectors, but quit. That's no commentary on Kevin, as I have no special insight on his situation and have no reason to doubt what he says-- and I've never dealt with autographs. I just think that the ways things are set up, and the expectations of the hobby visa vie people giving opinions, is mixed up. I did archiving for a historical museum and discovered they had no interest or knowledge what items were worth and had never sold a thing. The executive director was surprised when I pointed out that some of their items had market value, and another person there said she didn't think they were even legally allowed to sell anything. All they cared about was the items being accurately identified and described for their records. How refreshing, I thought. The museum's archiving system had its own set of annoying peculiarities, but maximizing resale value wasn't one of them. Last edited by drcy; 02-09-2016 at 12:14 AM. |
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Those who cheat are never going to admit that cheating is standard practice.
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$co++ Forre$+ |
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Response for Al
Hi Al,
Thanks for sharing your concerns with me. Pardon my delay but I had to eat dinner with my family, put my children to bed, make a few phone calls, and do a few other things so I am only getting to your question now as I wanted to wait until I could give it the attention it deserves. Yes, I did hire an attorney: William Coffield (of Berliner, Corcoran & Rowe, LLP Washington, DC, ). My attorney spoke directly with the FBI and multiple times with the U.S. Attorney's Office. My lawyer has advised me that I do not need a written statement because the U.S. Attorney's Office in charge of the case approved my statement last week. And I’m confident they would corroborate my statement again if you wish to contact them. This entire episode began for me on Sunday, January 31. I had just returned from a family vacation and put our children to bed. It was about 10:30 at night when I was clearing through emails that had piled up while gone and came upon the one I have copied (verbatim) below from a friend who is also the owner of an auction company and here is what he wrote, in its entirety (save for his name at the end): Hey Kevin, Hope all is well with you. Information came out in Doug Allen's sentencing regarding shill bidding. Your name is on a spreadsheet that is circulating on the internet. It makes no sense that you would do something like this, you were probably just bidding. I wanted (you-sic) to be aware of this so you can correct it. Needless to say, as someone who has NEVER shill bid in any auction, I was more than stunned at the information before me which I was doing my best to process. I spoke with my attorney the first thing the next morning and we immediately began fact-finding to determine what the list was, what purpose it served, and most importantly (to me, anyway): how was it that my name had been added as a “shill bidder”??? My lawyer started making phone calls while I researched the 38 lots. Fortunately, the Legendary website remains operational and I was able to find every lot in question in their on-line archives. While I did not remember seeing everything before (this was 7-8 years ago), I did recall some. But what was apparent to me was that these were all lots I would have bid on if given a chance. After that I went to the spreadsheet on Exhibit E and, using a “Control F” search, I consolidated all the entries of my name so that I could evaluate that data more easily. With all the information on a single page, a few things jumped out at me and raised some additional questions: 1) At first, I did not know who “Historical Collectibles” were. But once I learned that it was a M-L “Shell company”, I realized that everything attributed to me was, in fact, owned by M-L or someone I knew to be a M-L employee, (with one possible exception—Lot 949 in the December 2008 auction); 2) How could I—or anyone—be accused of shill bidding on seven lots I had won—especially when all seven were owned by someone else? 3) How could anyone—in this case, me—be accused of shill bidding on two lots they did not own and for which the loss amount attributed to the shill bidding is ZERO? (see lots 107 & 426 from the August 2008 auction). What's the point on shill bidding something for no monetary gain??? 4) The total “loss amount” assessed to the 38 lots comes to $20, 437, an average of $537.81/lot (and twelve of the lots were assigned a loss value of $100 or less each). But I had bid on hundreds of M-L lots during that same, two-year period, so why were these 38 lots selected for inclusion and the hundreds of others were not? And besides knowing that I had never shill bid, I also knew that in all the discussions I have had with the FBI about the M-L and other investigations, I have never been questioned in any way to suggest that I was ever suspected of complicity in any unethical or criminal behavior. And I have never been asked to provide grand jury testimony, either. Considering all this and the questions which I had derived from my spreadsheet analysis, I concluded that the only explanation for my inclusion on the list was that M-L had used my account somehow without my knowledge to execute some of its shilling activity--and that use was attributed to me when this list was prepared. But that presumption was incorrect, and in one of my lawyer’s conversations with the government we were informed that the reason for my inclusion was simply that M-L had violated its own self-imposed code of conduct (COC) under paragraph 2, which prohibits authenticators and others who worked for the auction house from bidding on lots owned by M-L employees. As a stated policy, M-L was therefore obligated to prevent me from bidding on items they or their employees owned. And of course, because no one but M-L had access to information that would identify lot ownership, only M-L could enforce that policy—and, at least in my case, they chose not to do so and let me bid both unwittingly and in good faith on those lots. Thus, for the purposes of assessing damages, which was the intent I am told, of Exhibit E, the effect of both a shill bid and a prohibited bid (as is the case of my bids) is the same to the lot winner because both bids will theoretically result in a higher end price for the winning bidder. And this list was prepared to look at the monetary damage assessment, a.k.a., "loss amounts." And, in my case, when compiling the list my name was co-mingled with others since no distinction was made between bids that were executed in good faith like mine (but were prohibited by M-L rules) and those that were actual shill bids. These are the facts. I realize that they may not be enough to satisfy everyone but my goal is not to please everyone or to make everyone like me--I think I gave up on that goal back in kindergarten! My goal is simply to present the facts--convoluted as they are--in a coherent, logical way so that they may be readily understood. If I can achieve that, I am confident that fair-minded people will conclude that I did nothing wrong. Again, thanks Al for asking your question—Kevin K. |
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Kevin,
Thanks for responding. Pretty much all of that makes sense to me, particularly this: Quote:
This is the exact reason why anyone who feels they do not belong on the list should be loudly posting about it here. There's zero reason not to. In fact, it's the best possible way to clear your name. Unless you're guilty. -Ryan |
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That's just my opinion - I understand yours as well. Perhaps if I saw my name on the list I would respond quickly in anger, just prior to asking Leon to end my subscription.
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$co++ Forre$+ |
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Doug Allen sentenced
I believe he was sentenced to 57 months in prison
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I know who Kevin Keating is, but I have never had any dealings with him, and I'm not sure that I've ever conversed with him
However, I have known Hank Thomas for many, many years and have had many conversations and dealings with him. And it is my belief that NO ONE in this hobby of ours has A HIGHER LEVEL OF INTEGRITY than Hank Thomas. Val Kehl |
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