"PCGS Announces Next Steps to Improve and Protect Hobby"

From PCGS:

PCGS Announces Next Steps to Improve and Protect Hobby - PCGS Library

Thoughts? Sounds interesting, I would like to hear more about how the "Coin Sniffer" works.
They also stated "[FONT=arial,helvetica][FONT=arial,helvetica][FONT=arial,helvetica]The simultaneous alloy determination will further aid in the detection of counterfeits as an additional benefit." This sounds similar to NGC's new [/FONT][/FONT][/FONT]Metallurgic Analysis Service, so I wonder if NGC will follow PCGS's lead and start scanning all coins?

 

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Very interesting....now the concern is how many more coins are going to come back in genuine holders/altered surfaces because someone got cheeto dust on their coins..
I suppose the counterfeiters are getting better so the grading/certification companies need to stay one step ahead..

 

How about a plan to thwart the Communist Chinese from dumping counterfeit coins and slabs on the US market? Now that would be interesting.

 

Guess you better clean the cheeto dust off your coins before sending them in.

 

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

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

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

1926-D 25C, originally submitted to PCGS on March 23, 2001 through Liberty Coins. Re-purchased in September 23, 2008 under PCGS Guarantee. Liverty’s head artificially enhanced.

1810 $10 gold piece, originally submitted to PCGS on November 29, 2006 through Defendant Steinberg. Re-purchased in June 2009 for $1800 under PCGS Guarantee. Foreign substance added to coin’s surface to cover marks.

1881 $2.5 gold piece, originally submitted to PCGS on Dec 16, 2009 by Steinberg on behalf of Defendant Rossman, held by PCGS pending trial in this action. Lines on coin’s surface lasered off.

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, 2009 by DiGenova after having been laser treated to remove lines. PCGS refused to grade the coin.

1918-D Mecury 10C, orginially submitted to PCGS on May 17, 2001 by Defendant Digenova’s company, Tangible Assets. Re-purchased in April 27, 2010 for $90,000 under PCGS Guarantee. Crossbands on dime had been rebuilt.

1833 Bust 50C, originally submitted on April 8, 2004 by Superior Galleries. Re-purchased in June 22, 2008 for $8,500 under PCGS Guarantee.

1928-D Standing Liberty 25C, originally submitted on May 30, 2001 by Digenova’s company, Tangible Assets. Re-purchased in March 2005 for $4,650 under PCGS Guarantee. Liberty’s Head was rebuilt to appear “full”.

1904 $20 gold piece, originally submitted April 1998 by Krill. Re-purchased December 2007 for $1,250 under PCGS Guarantee. Foreign substance applied.

1926-D Standing Liberty 25c originally submitted in July 2001 by Lehmann. Re-purchased in June 2007 for $7,500 under PCGS Guarantee. Liberty’s head rebuilt.

1919-S Mercury dim originally submitted on August 13, 2001 by Lehmann. Re-purchased in September 2009 for $4,887. Crossbans on dime had been rebuilt.

1918-S quarter orginally submitted in April 2001 by Dan Ratner. Re-purchased in February 2007 for $3500. Liberty’s heat rebuilt.

 

90 G's is a HUGE hit to take.

 

Apparently an amended complaint was filed adding new defendants:

Al Rossman
Eric Steinberg
Rick Wesslink
Silvano Digenova
Greg Krill
Robert Lehmann

Here's is a link to the thread started on the PCGS forum about this lawsuit if you care to follow along....

http://forums.collectors.com/messageview.cfm?catid=26&threadid=776604

And here is a link to the actual complaint that was filed in U.S. Central District Court...

http://www.coinlink.com/News/pdf/CU_vs_Coin_doctors.pdf

 

You know PCGS has thought this out before filing the suit and I'll bet they have investigators who have taken problem coins to these people to be sent in. I hope they win and send all the people involved to the poor house. There are enough counterfeits and coin doctors who might just stop if they think they might be in the cross-hairs of a huge company like PCGS. I hope the other coin grading companies join in on the suit. Tim

 

Well overdue!

 

I'm not sure the other grading companies will be able to join in PCGS's lawsuit since they do not have the same technology that PCGS has to detect (and prove) the alterations on the coins.

 

ok I dont understand what is going on. Are those people sueing PCGS or vice versa?

 

They can add addicus briefs in support of the suit. Tim

 

Shoe, PCGS is suing the people listed.

Ice, even if other TPG's file addicus or amicus briefs, I don't believe they will have any evidence like PCGS does to support or back up any claims. As far as I know, they are not privy to nor have access to the new technology that PCGS has to detect the alterations.

 

I am happy to see this step, but I think their complaint should read against coin surgeons rather than coin doctors , as almost all of the coins seem to physically enhanced rather than chemical. I suspect this will not ferret out differences in toned surfaces, which seem to be more rampant, and this might even give false hope to buyers of expensive toned coins.

 

I was thinking the same thing. Think it's possible the machines can somehow recognize differences between AT and NT coins?

 

The techniques and analytical equipment that are being used, have been used in art to detect differences in cloth canvases and different mixtures of pigment to detect alterations or more modern compounds. It would be relatively easy ( IMO) to detect putty, filled material of other than the same coin metal ( like putty), Frosting from chemical rather than strike, etc. If a coin doctor used chemicals that were not similar to natural occurring, they could probably detect that, but probably so would most experienced collectors. Thad has had more experience with these analytical processes, especially with coins, I will be interested to see his opinion.
Jim

 

WOW!

Looks like heads are going to roll, some careers are going to be on the line with all this publicity!

I know anyone can be named in a lawsuit and they are completely innocent until proven guilty, but once your named in a Federal suit you just as well go sell pencils on the street corner than stay in the rare coin business.

This is going to be interesting. I don't know any of those dealers, but some of the companies associated witht hose names are known to me.

 

Just to clarify, PCGS is only going to use Coin Sniffer on coins submitted for SecurePlus - that is, those who pay the extra $60 per coin for the service.

 

Vewwy Intewwesting!

 

As far as the lawsuit is concerned.... Here are a few more details, including a list of the alleged coin doctors and a copy of the complaint:

http://www.coinlink.com/News/counte...nst-coin-doctors-by-collectors-universe-pcgs/