I agree. This is a copy (not marked as such) of an existing key date of the Morgan series encased in a copy of a TPG slab (also not marked as such) WITH INTENT TO DECIEVE, therefore a counterfeit produced by a (therefore) counterfeiter.
Interesting question. Is it a counterfeit if it is made someplace where it is perfectly legal to do so? It is definitely a fake or a copy, but is it a counterfeit? (No I'm not defending the guy who made it or the seller, just exploring the semantics of the situation.) Because if it isn't a counterfeit (because it is legal to make it) then the maker isn't a counterfeiter, he is a copier.
If it is a legal copy in its place of manufacture, does it then become a counterfeit when it enters this country? Or, from the perspective of the US, was it always a counterfeit and it only became actionable when it entered the country?
Physics-fan3.14, I admire your philosophical analysis. I think it would always be a counterfeit even if it was legally made in country X and it would become a crime the minute it crossed the wrong border into country Y. I've heard stories that there is state-sponsored counterfeiting of US $100 in some countries. The fact that the host country supports it doesn't mean it's not counterfeiting, or that the US shouldn't take action to prevent it.
If you go by the definition it's a counterfeit when you are trying to deceive someone, so it's irrespective of legality.