Professional Coin Grading Service (PCGS) today sent out a Press Release  announcing  a major lawsuit has been filed in United States District Court, Central District of California, against six individuals claiming they engaged in a pattern of racketeering activity, breach of contract, conspiracy, unfair competition and fraud for allegedly submitting “doctored” coins to PCGS for grading on multiple occasions for a period of years.

The Defendants named in the suit include: Al Rossman of Nevada, Rick Wesslink of California,  Robert Lehmann of Maryland, in addition to three members of the Professional Numismatists Guild ; Eric Steinberg of Florida, Silvano DiGenova of California, and Greg Krill of California

PCGS stated that as many as 10 other defendants could be added to the Complaint.

The suit claims the dealers violated federal laws, including the Lanham Act involving interstate commerce and RICO racketeering statutes, and also alleges “unlawful, unfair and fraudulent business practices” for submitting coins that were deceptively altered in an attempt to increase their value.

Click Here to view a Copy of the Complaint

The Complaint states: “Defendants knew that these coins had been ‘doctored,’ by themselves and/or other persons engaged by them for that purpose. Their methods included lasering the surfaces of extremely rare proof gold coins to remove surface imperfections, building up commonly-worn or weakly-struck portions of coins, and other physical and chemical processes. Defendants represented to PCGS that these coins had natural surfaces, intending to deceive PCGS’s graders so that the ‘doctored’ coins would be certified by PCGS and then sold in the rare coin marketplace.”

A couple of examples given in the complaint include the following coins:

• 1885 $5 gold piece, originally submitted to PCGS on Dec 16, 2009 by Steinberg on behalf of Defendant Rossman. Foreign substance added to coin’s surface to cover marks.

• 1879 $4 Stella gold piece, Originally submitted by Heritage on May 8, 2008. Resubmitted on August 28, 2008 by DiGenova after having been laser treated to remove lines. PCGS refused to grade the coin.

The suit claims the “Defendants have caused, and are continuing to cause, substantial and irreparable damage and injury to Collectors Universe and to the public and Defendants have benefited from such unlawful conduct and will continue to carry out such unlawful conduct and to be unjustly enriched thereby unless enjoined by this Court.” (more…)

To help accommodate the company’s expanding international presence, Professional Coin Grading Service has launched a new web site, www.PCGSGlobal.com, that allows coin enthusiasts from around the world to view information about PCGS third-party grading and explains in their own local language how to use PCGS’ services.

The launch of PCGSGlobal.com coincides with the recent opening of the new PCGS submission center in Paris, France. A key aspect of the new web site is how it provides the particulars of submitting coins for grading and encapsulation to the Paris submission center through PCGS Authorized Dealers located in the European Union.

“PCGS continues to expand its services to collectors and dealers throughout the world and especially in Europe,” PCGS President Don Willis explained. “Offering access to our web site in multiple languages is just another step forward in that expansion. In the weeks and months ahead we will continue to think globally and act locally.”

PCGSGlobal.com is initially offered in French, English, German, Italian and Polish, representative of some of the most active numismatic communities in Europe. Other languages will be added as the market dictates.

“While not intended as a substitute for the vast content carried on www.pcgs.com, one of the most information-rich web sites in the entire numismatic field, PCGSGlobal.com gives visitors the essentials they need to do business with us,” said Willis.

The Home Page contains information about PCGS, the importance of coin grading, the PCGS Guarantee and PCGS Grading Standard. The site’s menu includes separate pages on PCGS Services, How to Submit, Resources (with links to important PCGS.com pages including online Price Guide and Population Report, Auction Prices Realized and Set RegistrySM), About PCGS and Contact PCGS.

Professional Coin Grading Service is a division of Collectors Universe, Inc. (NASDAQ: CLCT).

The Professional Coin Grading Service (www.PCGS.com) has opened an office in Paris, France as part of the company’s expanding international services. The new facility, physically establishing PCGS’s third-party grading in Europe, already is being praised by several of the European Union’s top numismatists for the convenience it brings to collectors and dealers in EU countries.

“The opening of a PCGS grading center in France is very good news for all European dealers and collectors who can now have their coins graded more easily. The time-consuming and costly exportation of sending them first to the United States, along with customs issues, will soon only be bad memories!” said Eric Palombo of Maison Palombo in Marseilles, France.

“For several years we’ve been successfully increasing our presence in Europe and Asia with participation at major numismatic events and agreements with government mints,” said Don Willis, President of PCGS, a division of Collectors Universe, Inc. (NASDAQ: CLCT). “The establishment of a full-time office in a major European capital now gives us an even greater opportunity to conveniently and efficiently assist EU collectors and dealers with the certification of their coins.”

To expedite services and eliminate the need to send coins to the United States, effective June 1, 2010, all submissions to PCGS from EU countries for grading, re-grading or crossover service will be made through the Paris office. “Grading will be performed on-site on a regular basis. All submissions from the EU to the Paris office must be made through a PCGS Authorized Dealer located in the EU. Submissions are accepted from those dealers by appointment only,” explained Muriel Eymery, Manager of the Paris office and PCGS Director of International Business Development.

Three other prominent dealers also praised the establishment of the Paris office.

Fabrice Walther of Numisaisne Paris stated: “We thank PCGS very much for establishing a presence in Europe, especially in Paris. We are convinced that in the very near future PCGS grading will make the European and world coin markets more dynamic than anybody today could have foreseen.”

Arnaud Fhal of Godot Et Fils in Paris commented: “With PCGS in Paris, French and European coin collectors can finally have easy and secure access to impartial, independent grading and the capacity to know and get the best prices for their coins.”

Jean-Claude Deroche, who represents Panorama Numismatique in Paris and has been a coin dealer for more than 30 years, says he chooses PCGS “for its international capabilities and its grading rigor.” He added: “Bienvenue to PCGS graded coins! The PCGS European setting is most welcomed in Paris. PCGS will further strengthen collectors’ confidence and security and add value to their coins.” (more…)