American Greed-CNBC

[Robert_Lifson]

Hats off to Jeffrey Lichtman and Ryan Christoff, two great ambassadors for the hobby! And also to Michael O'Keeffe, who has played such an enormous role in documenting hobby issues at The New York Daily News for so many years, and in the process, by doing so, playing an unsung enormously significant role in promoting positive change. All of these guys at times have been "punching bags" for being outspoken activists, but were always unfazed by being at odds with popular opinions or personal interests of others regarding hobby issues (both relating to Mastro and Legendary Auctions as well as many other hobby issues) over the years. I have no doubt the American Greed producers are very thankful these gentlemen were willing to devote their time to appear in the show. As someone who loves the hobby, I personally am thankful for all their efforts to make the hobby a better and safer place for all.

Ryan, that was a beautiful parting salutation in your email to Mastro Auctions! That was one of many highlights for me! Jeff, you have such incredible insight and knowledge and ability to communicate. I GREATLY appreciate your willingness to so often speak truths that are at times not so well received but so spot-on and valuable. Your great contributions to the field are very under appreciated. There are many others that have made tremendous efforts and contributions to positive change (ironically some that don't always get along, but at the end of the day, are all really on the same page), including Leon L, John M, Peter S, Jay B and, frankly, too many others to name.

I thought the show was GREAT! Was it perfect? No. But, like Ryan said, it's an impossible job to cover all this crime in less than an hour. There is no doubt that (if time allowed) much important additional information and additional stories could have been covered, and there is no doubt that different people (maybe every person) would have included (or excluded) different things, if given the opportunity. I think we have to remember that the show is not really designed or intended to be comprehensive. It's meant to be an introduction to the Mastro Auctions story for the general public. And it's meant to be great entertainment. I think they were very successful on both counts.

Perhaps most important, echoing Ryan Christoff's EXTREMELY accurate sentiments expressed regarding FBI agent Brian Brusokas:

The entire collecting world - each and every collector on Net54, and all collectors NOT on the board (as well as all collectors yet-to-be in the future!) - owe an immeasurable debt of gratitude to SA Brian Brusokas. Once the criminal issues of the field in general, and with reference to Mastro Auctions in particular, hit his desk, he immediately understood the magnitude and significance of addressing the fraud issues at Mastro and the field. Some problems involve easily understood fraud (such as fraud involving fake autographs and memorabilia, and restored or altered cards).

But some of the greatest and costliest fraud in the field was not as easily appreciated, or easy to prove (especially due to intentionally destroyed and doctored bidding records): He understood the importance of addressing Mastro Auctions' rampant shill bidding. The true cost to the public was incalculable. He also understood the great cost of Mastro's common practice of reporting fake sales when their shill bidding back-fired: As detailed on the show by federal prosecutor Steve Grimes, one of the popular methods of fraud by Mastro Auctions was to arrange for items to be put up for auction, and then if they were not bid (or shill bid) high enough, the items would be “won” by a Mastro shill bid account and then secretly returned to the consignor with no charge or commissions. In this way, a fake sale at a desired level is reported, which could actually be used to help as reference (as a market influence or sales tool) for a future sale of the very same item. And if only one real bidder could be drawn in to bid and win at the desired level – voila! – a real (though shill-bid) sale at a shill-bid inflated price that does not reflect the real value and demand for the item.

This may be easy to take for granted now in hindsight, but believe me, getting law enforcement to even understand the concept and costs of shill bidding at all, let alone to take action, was a tall order. No case like this had ever been brought by the government before. FBI Agent Brian Brusokas immediately understood the incredible costs to the public of these shill bidding practices (as so effectively described by Jeffrey Lichtman and others in the American Greed episode), and he worked with prosecutors (who also deserve tremendous appreciation for their efforts) to determine that this was a very serious problem deserving of attention to protect the public. The entire collecting world was being cheated. Mastro Auctions was a ground-breaking case in so many ways. Everyone familiar with or privileged to have special insight into the case knows that its success could not have possibly happened at all without the personal interest and super-human talents of one agent. His extraordinary ability to collect information about and understand all aspects of this complex field, as well as (or better) than even the most seasoned veterans of the industry, was an almost impossible prerequisite for success. Brian Brusokas is that agent. Though I’m sure he had help, ultimately, he made it all happen. And if not for SA Brian Brusokas, almost everyone on this board would still be getting robbed every auction by being shill bid at Mastro auctions.

Well, almost everybody. Jeff...he wouldn't be interested in continuing to place bids at an auction he knew had a "maniac" sitting there waiting to shill bid him up. And Ryan...well, you'd still be banned!

My best to the entire board!

Sincerely,

Rob L

Robert Lifson

info@americanainvestments.com