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Judge DredIt appears that GAI will grade altered cards. The seller has stated that the card was professionally restored. The card was given the lowest grade possible, rightfully so considering the condition.
http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&category=31719&item=5103553977&rd=1
So when does SGC step up to the plate and PSA (although people say the PSA altready does this with the AUTHENTIC grade assignment).