Quote:
Originally Posted by Leon
ALTERING cards is not fraud. Altering and then saying they aren't, is fraud. It's a slippery slope and I abhor the altering (major altering) that goes on. However, if I trim a card and then submit it to any grading company, and they numerically holder it, I have not committed fraud. The grading company has made a mistake...and unless they KNEW it was altered and still graded it numerically, they didn't commit fraud either. I am not a lawyer but I think fraud generally has to do with deception. And you won't be prosecuted in our hobby, generally speaking, for being incompetent.
And for the record I have been told, by respected sources, that most authorities aren't jumping at baseball card trimming/altering cases. That being said, I wish they were and I wish fraudsters would get a heavier hand than they seem to.
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Leon,
Actually on some of these points, I'm going to respectfully disagree with you.
You are right that trimming a card and sending it to grading company isn't fraud in itself - unless you sell the card then it probably is fraud. In the legal arena, there can be criminal fraud and civil fraud. Civil fraud is easier to prove. There is fraud by deliberate deception and also fraud by non-disclosure.
In Texas the elements of a cause of action for fraud by nondisclosure are:
(1) the defendant failed to disclose facts to the plaintiff;
(2) the defendant had a duty to disclose those facts;
(3) the facts were material;
(4) the defendant knew the plaintiff was ignorant of the facts and the plaintiff did not have an equal opportunity to discover the facts;
(5) the defendant was deliberately silent when it had a duty to speak;
(6) by failing to disclose the facts, the defendant intended to induce the plaintiff to take some action or refrain from acting;
(7) the plaintiff relied on the defendant's nondisclosure; and
(8) the plaintiff was injured as a result of acting without that knowledge.
Reservoir Syst., Inc. v. TGS–NOPEC Geophysical Co., L.P., 335 S.W.3d 297, 306 (Tex.App.-Houston [14th Dist.] 2010, pet. denied)
The key issue is if trimming or some other type of alteration is a material issue. In the case of consumer fraud, courts have ruled that a "deception is material, in that it is likely to influence the consumer’s purchasing decision". To me, if someone trims a card that clearly will improve the appearance, then it's a material change, since knowing that the card has been significantly altered will influence my decision to purchase the card.
You are right in that law enforcement has been reluctant to prosecute these types of cases. I've learned that lesson the hard way. I believe the biggest problem with doctored graded cards are chain a custody issues since the card passes through so many hands.
With all of this said, it appears the most effective avenue for exposing these kinds of activities has been this forum, Net54Baseball.com and once again I commend you for moderating this forum and not backing down on the fraudsters when they get exposed. Keep up the fantastic work.