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All Posts Tagged With: "PCGS Lawsuit"

Laura Sperber Meets with PNG Board to Discuss Coin Doctoring

The Following is taken from Laura Sperber’s Hot Topics concerning her invitation to meet with the Board of Directors of the Professional Numismatists Guild [ www.pngdealers.com ] on June 2nd in Long Beach, CA., to discuss the issue of “Coin Doctoring” in light of the PCGS Lawsuit filed against 6 coin dealers, three of which are PNG Members.

First, I would like to thank the PNG Board of Directors for giving me the opportunity discuss my grievances direct. They seemed genuinely interested in what I had to say, however that is where it ends.

To make sure I am not overreacting, I waited until I was back home to write this. Plus, I wanted to see what the PNG press release had to say. Unfortunately my gut instinct was correct.

THE PNG MEETING I ATTENDED WAS A SLOW MOTION TRAINWRECK. EVERYONE ON BOARD HAD THEIR HANDS OVER THEIR EYES.

Even though the board was attentive, they were highly combative. MULTIPLE times they told me they are a REactive group, not a proactive one. They proved to me with out a doubt they do not have a grasp on the situation and no matter what rhetoric they release, they will do very little about it.

The most damning statement they said: “WE HAVE NEVER HAD A COMPLAINT ABOUT COIN DOCTORING FROM ANYONE”. Ok, so in their eyes there had been no problem? Adding to that, they dwelled on the fact “people knew we were here”. Who the heck is going to complain to them? Collectors had to go to the services to be made whole. Besides, according to the PNG, just having an altered coin is proof of nothing. Still, I freak when I think about how no one at the PNG knew there was this horrible abuse happening-some of it created by their own membership. Talk about denial.

They did ask me what I would do about the 3 members in the lawsuit. Of course I said “suspend them”. They hammered back with “we can’t suspend the members in the lawsuit. Its a complaint. There has been no trial, they are not guilty”. Another member said “we’d love to take action, We can not do so on hearsay”. Unless the PNG learns to stop living in fear of being sued by its members and take the actions it should, they will NEVER be able to effectively control them.

The best one was when the board challenged me. They dragged a name of a coin doctor from me acting like they would take action (stupid me). I told them I saw him put putty on a coin at a show. They charged back: What proof do you have? Do you have photos, what solid proof?” One member wanted me to go start my own lawsuit. Give me a break.

Here is the ultimate proof they do not have grasp of the situation: one member said to me: “You sell puttied coins”. My response,: “so do you”. He failed to understand the problem is with coin doctoring. We do NOT intentionally sell puttied coins-ever, nor does he. Its the coin doctors who fraudulently try and get this crap by the grading services who are the problem. They couldn’t even grasp that-one member said “aren’t the grading services supposed to catch this?.

As the meeting went on, I was called a hypocrite yet also was asked to help them. It ended up exactly how I knew it would-they would have a debate to decide the definition of coin doctoring before moving on. I asked them, “being so quick to take NGC’s money as the preferred grading service, why did they not know any of this and why do they have to debate the definition?”. Their state of denial is unbelievable. These guys are dealers, dealers who do shows, dealers who do retail, how the hell can they not know about coin doctoring? In my opinion, this is far worse than a case of selective retention. (more…)

Coin Rarities & Related Topics: The PCGS Lawsuit Against Alleged Coin Doctors

News and Analysis regarding scarce coins, coin markets, and the coin collecting community #3

A Weekly Column by Greg Reynolds

I. Today’s Theme

Welcome to the third installment of my column. I had planned to write more about auctions and about current demand for rare Liberty Seated coins. I was pleasantly surprised, however, by the most important lawsuit in the history of coin collecting: The PCGS lawsuit against six named individuals and other not yet named individuals regarding coin doctoring is pathbreaking and earth shattering.

Even if the PCGS does not prevail on all points or against all defendants, the educational value of this suit, and the impact that it will have on coin doctors, goes way beyond the fate of these defendants. For legal reasons, I will not comment on the defendants in this suit. I am asserting that a significant number of coin doctors who are not defendants will be discouraged by this lawsuit from doctoring coins.

The PCGS SecurePlus™ program, which was inaugurated in March 2010, also discourages coin doctoring. For some discussion of the ‘plus’ aspect of the program and my idea as to how the NGC can discourage coin doctoring, please see last week’s column.

Under the SecurePlus™ program, submitted coins are scanned, for purposes of identification, with CoinAnalyzer devices. The PCGS will be able to identify each scanned coin if it is submitted to the PCGS again in the future, and, when a match is found, the submitted coin will be closely compared to an image of the same coin that was taken when it was previously submitted. Changes in the appearance of each matched coin will be investigated. The positive effects of the SecurePlus program, though, will build very gradually over a period of many years. This lawsuit will be extremely effective at discouraging coin doctoring in the near future.

Four years ago, when coin doctoring was rampant in the dealer community, had PCGS officials threatened a coin doctor with a lawsuit, the coin doctor probably would have figured that PCGS officials were bluffing. I am almost certain that this is the first time that a grading service has sued some of its dealer-members for submitting coins that are allegedly doctored and misrepresented.

Now, if PCGS officials threaten a coin doctor with a lawsuit unless he stops submitting doctored coins to the PCGS, the threatened individual is likely to take the threat very seriously and believe that the PCGS might actually follow through with a suit. Yes, I realize that not every coin doctor will be deterred by the threat of a lawsuit. Most will be deterred, at least to an extent. (more…)

Commentary: Thoughts on the PCGS Lawsuit Against Coin Doctors

Below is a Hot Topics Article posted on www.LegendCoin.comCoinLink has reproduced it in it’s entirety. This article is the opinion of the author, Laura Sperber.

KUDOS PCGS!

Please, no one pinch me, this is one dream I do not want to end. My sincere congratulations to David Hall and Don Willis for taking the ultimate step in the fight on coin doctors-filing a lawsuit!

For years the situation with coin doctors has only been growing more desperate. The grading services have been fighting them as hard as they could privately. Every time they thought they had a handle, the coin docs just figured out new ways to continue their destruction. This lawsuit is not for glamour, rewards, or a money grab, it was a necessity. PCGS has done the absolute right thing. TO SEE A COPY OF THE SUIT, VISIT www.coinlink.com

LEGEND NUMISMATICS FULLY SUPPORTS THE COMPLAINT AND PLEDGES TO HELP PCGS BECOME VICTORIOUS.

THE DEALER CULTURE

There is a rotten to the core subculture of coin dealers close to these guys who truly believe that it is their right to doctor, recolor, or do whatever they please to coins for a living. These people have little respect and nothing but contempt for the grading services and the public. Its time they learn they are not above the law. I have already spoken to several dealers who making their living cracking out coins. They see no wrong because they do not consider themselves full coin doctors. Much to my shock, they have the attitude that PCGS is wrong and the complaint will be dismissed. WRONG!

Its mind boggling these greedy whores fail to realize is that FRAUD has been committed. One dealer said to me “Its the grading services job to not allow doctored coins to get through”. True. However, it is against the law to try and defraud them by altering the coins they submit. Once this complaint starts progressing, the peripheral players will be exposed. Those are the guys who really have to be sweating right now. They are the ones who quietly sent coins off to these guys to have the work done for them while they look clean. I think you’ll be shocked to see who some of these names are-especially including some well known longtime PNG members. Plus, sooner or later, it probably will be exposed about a few major firms who employ well known coin docs. They will be a tougher fight because they hire them and called them “conservationists or curators”. In the end, they won’t win-the evidence will be too overwhelming.

PCGS has started the fight “right”. They are not just shooting the dark, they gathered the most facts and proof possible then waited for the right opportunity to file the complaint. There never was any secret among major dealers who the real coin doctors are. Dealers like myself were helpless to fight them other than to publicly complain (if you notice few of my fellow dealers ever stood up and spoke out). I could name most docs, I know who a lot of these guys are, however I would have been sued for sure. PCGS can file suit because they have been directly harmed and they have the physical evidence with the proven patterns of deceit these guys followed. It will be interesting to see the defense tactics the defendants will employ. In my opinion, the best they can do will be to deflect and totally deny. Too bad for the docs, facts are facts-no court or jury should rule against a consumer injury by fraud. (more…)