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Rob D.Dennis, given your use of ALL CAPS, I take it your problem is that Memory Lane is selling these, not the fact that PSA slabbed reprints (knowingly, I mean)?
To me, if an auction house can pay a grading company to slab reprints, then I'd say it can do whatever it wants to with the slabs/cards. Whether the auction house sends them FREE to people or tries to sell them, the fact remains that the grading company -- whether it be SGC or PSA -- prostituted itself in a way.