Interesting thread on the non-sports board

[Wesley]

Maybe we will know soon enough whether Heritage's practices are legal or not. There is an ongoing lawsuit filed last summer in TX by a former Heritage employee or consultant that alleges shilling, bidding manipulation, RICO violations, etc. Who knows. It is possible their disclosures will be enough to protect them.

[ElCabron]

If it's so ethical to only bid on items in their own auction 7 days before they close, why not post a list of items they've bid on? That way, 7 days before any of their auctions end, potential bidders can go check this list to see if any of the items they're bidding on, or going to bid on, are being bidding on by the auction house.

Or would bidders then be less likely to bid on those items? Yeah, I guess that kind of transparency wouldn't be good for business.

-Ryan

[barrysloate]

While Chris himself may choose to hold his own actions to a high ethical standard, and not run up bids, Heritage's system would certainly allow a rogue employee to consign lots and then pull a lot of shenanigans during the auction. This is a horrendous policy. That said, they are the biggest collectibles auction house in the world, selling a few hundred million dollars worth of rare coins every year. Sports is a drop in the bucket. So something must be working for them.

[Rich Klein]

http://blogs.dallasobserver.com/unfa...age_auctio.php

As an aside, Sam Merten, who wrote this story for the Dallas Observer, used to work in the Beckett grading department and has a good knowledge of collectibles. I did not re-read the whole article or through all the comments; but I will later. There is no doubt that this is a fairly well balanced story and comments WERE well balanced and very interesting.

Rich

[jbsports33]

Interesting post, just not surprised by any of this, we have seen many issues come up in recent years and some how everyone is still in business. The policy for sure is to protect the consignor, but what about the buyer that has no knowledge about what lot may be getting bids from the house.

Jimmy

[calvindog]

I'm not here to defend Heritage, just trying to point out the hilarity of piling on them while defending Goodwin to the grave. Based on the following auctions, which occurred within months of each other I believe, I suppose Heritage's proclaimed shill bidding did not do much to help them with these auctions:

Heritage: D304 Young SGC 80 $17,925
Goodwin: D304 Young SGC 80 $80,053

Heritage D304 Mathewson SGC 70 $8,365
Goodwin D304 Mathewson SGC 60 $45,123

Imagine if Bill Goodwin was able to shill bid as per his published auction rules! Things could really get out of hand; I mean it would be legendary.

[bijoem]

Originally Posted by calvindog

I mean it would be legendary.

poetic!

[bobbyw8469]

WOW! I am AMAZED at the price differences for the EXACT same card for the Young, and a lower condition card got WAY MORE money than his higher grade counterpart!! Should I start consigning to Goodwin????

[Rob D.]

Originally Posted by calvindog

Heritage: D304 Young SGC 80 $17,925
Goodwin: D304 Young SGC 80 $80,053

Heritage D304 Mathewson SGC 70 $8,365
Goodwin D304 Mathewson SGC 60 $45,123

One word: marketing.

[rhettyeakley]

The fact that their house bidder includes the name "Gresham" is absolutely hilarious. Yeah, I'm sure he had no idea what that meant!

[PolarBear]

Originally Posted by Rich Klein

http://blogs.dallasobserver.com/unfa...age_auctio.php

As an aside, Sam Merten, who wrote this story for the Dallas Observer, used to work in the Beckett grading department and has a good knowledge of collectibles. I did not re-read the whole article or through all the comments; but I will later. There is no doubt that this is a fairly well balanced story and comments WERE well balanced and very interesting.

Rich

Wow, great article.

I couldn't believe the pseudonym of their in house "bidder", N.P. Gresham. Greg Rohan, the President of Heritage Auctions, says the N.P. is for "New Purchase" but claims he doesn't know the significance of Gresham.

I'm calling B.S. (Baloney Sandwiches) on that one. Heritage is primarily a numismatic (coin) based company. One of the widely known axioms in coin collecting is Gresham's Law. The use of it here is clearly meant to mock the bidding process. I'm shocked at the audacity.

No wonder he claims he doesn't know the significance of Gresham. That sure wouldn't come across too well in a lawsuit about shill bidding.

[Exhibitman]

Originally Posted by PolarBear

Wow, great article.

I couldn't believe the pseudonym of their in house "bidder", N.P. Gresham. Greg Rohan, the President of Heritage Auctions, says the N.P. is for "New Purchase" but claims he doesn't know the significance of Gresham.

I'm calling B.S. (Baloney Sandwiches) on that one. Heritage is primarily a numismatic (coin) based company. One of the widely known axioms in coin collecting is Gresham's Law. The use of it here is clearly meant to mock the bidding process. I'm shocked at the audacity.

No wonder he claims he doesn't know the significance of Gresham. That sure wouldn't come across too well in a lawsuit about shill bidding.

Don't misunderestimate Rohan. There's definitely something stinky in the potpourri at Heritage. I have to wonder how much of the $ I dropped there last year were bids against the house...

[PolarBear]

Originally Posted by Exhibitman

Don't misunderestimate Rohan. There's definitely something stinky in the potpourri at Heritage. I have to wonder how much of the $ I dropped there last year were bids against the house...

Indeed.

There's an old saying in Tennessee. I know it's in Texas, probably in Tennessee that says, fool me once, shame on you. Fool me, you can't get fooled again.