Mastro and Allen Indicted

[T206Collector]

Even Alfred Taubman, convicted Sotheby's price-fixer, was sentenced to just a year and a day in prison -- though he was fined $7.5 million. And how about Diane "DeDe Brooks" who did 6 months house arrest? Do we think what they did was better or worse? And when did Sotheby's go out of business exactly?





A Taubman's Bidder End. Sotheby's Big Prison-Bound as Appeal is Nixed, John Lehmann, New York Post, 07/26/2002, p. 16.
The Post reported here that "Convicted Sotheby's price-fixer Alfred Taubman has consigned himself to becoming a multimillionaire inmate next week after his appeal was thrown out yesterday."

A three-judge appeals panel in Manhattan heard his appeal and ruled that any errors in his price-fixing trial were "harmless."

Mr. Taubman was sentenced to a year and a day in prison and fined $7.5 million. Apparently the extra day made the sentence just long enough to qualify for early release.

At the hearing before the appeals panel, Mr. Taubman's lawyers brought yet another name to the attention of the public. They accused another ex-Sotheby's board member, Lord Thomas Camoys, of conspiring with Christie's chief Sir Anthony Tennant in April 1995.

Mr. Taubman's lawyers also objected to a quotation used by the prosecution in summing up the case to the jury. The quote was from the economic classic, "The Wealth of Nations" written by the 18th-century economist Adam Smith. The quote said, "People in the same trade seldom meet together even for merriment or diversion, but the conversation ends in a conspiracy against the public and in some contrivance to raise prices."

The Post then reported that in their decision not to grant the appeal, the Court ruled that the government had relied on 'the overwhelming direct evidence of Taubman's knowledge of and participation in the conspiracy."

* * *

Sotheby's Convict is Sprung, Adam Miller, New York Post, 11/10/2002.
Mr. Miller wrote here that "Disgraced auction empress Diana 'DeDe' Brooks laid low yesterday, a day after she completed her six months of house arrest for her role in a price-fixing scheme."

He explained that the former president of Sotheby's was sentenced earlier in the year after pleading guilty to fixing commissions and fees with rival art auction house, Christie's, and testifying against Alfred Taubman, her boss, who was sentenced to a year and a day for his role in the conspiracy.

He also wrote that "the deposed auction queen" also received three years probation, a $350,000 fine and 1,000 hours of community sentence and that the judge called her "a thief and a convict."

[Peter_Spaeth]

Failure to disclose a known material fact is a textbook definition of civil fraud. In the face of that, a disclaimer is useless. Is this somehow different under the criminal mail and wire fraud statutes? I doubt it. It certainly sounds like "false pretenses" to me.

[Peter_Spaeth]

Sotheby's is a bit player compared to Mastro!!!

[steve B]

Originally Posted by Peter_Spaeth

Sotheby's is a bit player compared to Mastro!!!

I'm not seeing this. Sothebys did 5.8 Billion in 2011 with over 1400 employees.

Mastro wasn't even in that league were they?

Steve B

[barrysloate]

Peter was being sarcastic....note the three exclamation points.

[Peter_Spaeth]

Originally Posted by steve B

I'm not seeing this. Sothebys did 5.8 Billion in 2011 with over 1400 employees.

Mastro wasn't even in that league were they?

Steve B

Does size really matter when you are evil incarnate?

[steve B]

Originally Posted by Peter_Spaeth

Does size really matter when you are evil incarnate?

Missed the exclamation points Maybe the internet has made my mind automatically ignore them.

I suppose size doesn't matter when it comes to people or companies doing bad things. It shouldn't.

But the sothebys guy did 10 months for some anti trust crime
And a bunch of bankers did far less if any for stupid but maybe not criminal stuff and didn't even lose their jobs.

I have no doubts about how much of the 20 years I'd do if I did some sort of postal fraud. (Likely most of it)

I'm not sure where fraud ranks on my mental "evil incarnate " list. Probably not in the top 50. It's bad, but there's lots of worse things.

Steve B

[Peter_Spaeth]

Originally Posted by steve B

Missed the exclamation points Maybe the internet has made my mind automatically ignore them.

I suppose size doesn't matter when it comes to people or companies doing bad things. It shouldn't.

But the sothebys guy did 10 months for some anti trust crime
And a bunch of bankers did far less if any for stupid but maybe not criminal stuff and didn't even lose their jobs.

I have no doubts about how much of the 20 years I'd do if I did some sort of postal fraud. (Likely most of it)

I'm not sure where fraud ranks on my mental "evil incarnate " list. Probably not in the top 50. It's bad, but there's lots of worse things.

Steve B

Steve, I agree. I would place card doctoring much higher on the list of evils than shill bidding, for example. The "evil incarnate" thing was tongue-in-cheek, directed at a certain poster's obsession with Bill and Doug.

[calvindog]

Originally Posted by T206Collector

Even Alfred Taubman, convicted Sotheby's price-fixer, was sentenced to just a year and a day in prison -- though he was fined $7.5 million. And how about Diane "DeDe Brooks" who did 6 months house arrest? Do we think what they did was better or worse? And when did Sotheby's go out of business exactly?





A Taubman's Bidder End. Sotheby's Big Prison-Bound as Appeal is Nixed, John Lehmann, New York Post, 07/26/2002, p. 16.
The Post reported here that "Convicted Sotheby's price-fixer Alfred Taubman has consigned himself to becoming a multimillionaire inmate next week after his appeal was thrown out yesterday."

A three-judge appeals panel in Manhattan heard his appeal and ruled that any errors in his price-fixing trial were "harmless."

Mr. Taubman was sentenced to a year and a day in prison and fined $7.5 million. Apparently the extra day made the sentence just long enough to qualify for early release.

At the hearing before the appeals panel, Mr. Taubman's lawyers brought yet another name to the attention of the public. They accused another ex-Sotheby's board member, Lord Thomas Camoys, of conspiring with Christie's chief Sir Anthony Tennant in April 1995.

Mr. Taubman's lawyers also objected to a quotation used by the prosecution in summing up the case to the jury. The quote was from the economic classic, "The Wealth of Nations" written by the 18th-century economist Adam Smith. The quote said, "People in the same trade seldom meet together even for merriment or diversion, but the conversation ends in a conspiracy against the public and in some contrivance to raise prices."

The Post then reported that in their decision not to grant the appeal, the Court ruled that the government had relied on 'the overwhelming direct evidence of Taubman's knowledge of and participation in the conspiracy."

* * *

Sotheby's Convict is Sprung, Adam Miller, New York Post, 11/10/2002.
Mr. Miller wrote here that "Disgraced auction empress Diana 'DeDe' Brooks laid low yesterday, a day after she completed her six months of house arrest for her role in a price-fixing scheme."

He explained that the former president of Sotheby's was sentenced earlier in the year after pleading guilty to fixing commissions and fees with rival art auction house, Christie's, and testifying against Alfred Taubman, her boss, who was sentenced to a year and a day for his role in the conspiracy.

He also wrote that "the deposed auction queen" also received three years probation, a $350,000 fine and 1,000 hours of community sentence and that the judge called her "a thief and a convict."

Again, I'll take that action all day and night.

[T206Collector]

Originally Posted by calvindog

Again, I'll take that action all day and night.

Then you'd be willing to give me odds?

[tbob]

Interesting to see Mastro's lawyer play the "lifelong religious good deeds doer" card.
I agree with leon's comment about how if he found out he had been shilled in bidding in Mastro auctions in the past, he would be infuriated. I would too, but how in the world will we ever know? We can suspect we were, but realistically we will never know. The mere suspicion of shill bidding lead me to quit making high proxy bids and instead end up staying up in to the wee hours and placing a bid on lots I wanted near the end of the auction.
Personally I know Doug Allen, as many on the board do, and from a personal standpoint I hope Doug comes through this all right, but, again like some on the board, I find all this very troubling and worrisome
I agree with a former poster who alluded to the fact the feds don't normally like to indict unless they believe they have an iron clad case, but they do occasionally make mistakes, usually in conspiracy cases or cases with multiple defendants.
What a mess......

[Copa7]

I picked up the book - THE CARD - in a book store and read the entire thing. It opened my eyes to the grading / auction world.

I would only get cards graded for the purpose of being slabbed for preservation. PSA have been less than consistent in their grading. I cannot say if there is bias to high end customers or preferred clients.

Like any endeavor that makes money, the temptation to fraud is always present. Research, ask questions and go with your gut instincts.

[Matthew H]

Originally Posted by Copa7

I would only get cards graded for the purpose of being slabbed for preservation...

Have you ever heard of a one screw? It has the same level of protection for less then 5% cost. Plus, you can take the card out if you want.

[calvindog]

Originally Posted by T206Collector

Then you'd be willing to give me odds?

Yes.

[T206Collector]

Originally Posted by calvindog

yes.

10:1? 50:1?

[calvindog]

Paul, don't be a clown. For once.

[T206Collector]

Originally Posted by calvindog

Again, I'll take that action all day and night.

You said that you'd be willing to give me odds. So give me odds. Or are you too afraid to admit that there is a reasonable chance that the evil Mastro/Legendary folks don't spend any time in prison? Depending on the odds you said you were willing to give me, I may very well be game.

Originally Posted by calvindog

Paul, don't be a clown. For once.

I guess you were joking. I wasn't.

How much is that York Caramel Cobb you're selling worth?