$4.6Mil logoman Luka Doncic

[GeoPoto]

Originally Posted by packs

How do you guys figure money laundering over a card would work? Unless you're saying the seller was laundering money as well? In order to launder money both parties need to be in the know.

Perhaps they mean more like an alternative to secret off-shore accounts (assuming such things still exist). Once the money (post laundering, if appropriate) buys the card, the asset can be conveniently retained at a safe/secret location and perhaps beyond the reach of prying tax authorities, court judgements, ex-spouses, creditors, etc. Obviously the act of purchasing the card should create some trail, but over time the card may be easier to "hide" (or "liquidate") than bank/securities accounts. The card could also be used to pay for services on the "barter" economy.

[packs]

Originally Posted by GeoPoto

Perhaps they mean more like an alternative to secret off-shore accounts (assuming such things still exist). Once the money (post laundering, if appropriate) buys the card, the asset can be conveniently retained at a safe/secret location and perhaps beyond the reach of prying tax authorities, court judgements, ex-spouses, creditors, etc. Obviously the act of purchasing the card should create some trail, but over time the card may be easier to "hide" (or "liquidate") than bank/securities accounts. The card could also be used to pay for services on the "barter" economy.

That's not how money laundering works though. Money laundering is a system devised to conceal funds. The object is to illicitly pay for something from a vendor, which is actually a shell company you also own, and then through a series of transactions with other shell companies you own, the money comes back to you in a legitimate way.

[Exhibitman]

You make an over-inflated deal for one asset in a safe country but the hidden part of the deal is for illicit assets that are not part of the paperwork; those trade hands separately in the country of origin. Perhaps you agree to pay $6 million for a property worth $4 million and the other side slips you equivalent in gold, diamonds, art or some other off the books illicit item that you can then sell for a lot more. You end up with the real estate here and a pile of diamonds over there, which you then smuggle out or sell into a burgeoning black market. The seller ends up with the cash here, and pays taxes happily here to launder the proceeds. Years ago I (briefly) had a case where that happened. I quit when I found out. I don't represent mobsters...just the usual assortment of celebrities, perverts, weirdos and junkies one finds in Los Angeles.

[Republicaninmass]

We all have standards Adam!

[68Hawk]

Drawing such a large amount of attention to yourself screams vanity rather than shady laundering to me.
If it's laundering you want to do you make the same deal in a dark room where no-one else knows about it.
Running up the price by purchasing high to 'pump' and then 'dump' your remaining stock is enormously risky.
First the attention will mean IRS attention.
Secondly, there are only a few players in that end of the market, probably no more than 2-3 in the close ball park high figure and then another 2-3 30%-50% below that.
All it takes is for the other potential buyers to see better value in a different patch or issue and leave that immediate market for the card and you're left holding merchandise worth 2-3 times what you can now get back for it.

Stuff like Lebron's 03 Exquisite patch cards, numbered to 99 or 23, have grown very organically over the last 15 years...even if that has become stratospheric in the last 12 months.
There is a large market who have the funds (in the hundreds of collectors for this exclusive issue) for his stuff and it trades consistently and regularly and higher and higher.

I think this Doncic number is far more likely a long term play by a collector or collector group who think the return in 10-15 years could be as good or better than the one made for Lebron rooks. They have the money that they aren't going to lose sleep if this card doesn't play out.
And GUARANTEED they have boat loads of cash into other players and feel good about making up with one card what they lose in another.

[chriskim]

I already contacted IRS to look into this, they didn't charge sales tax on this transaction. (I am pretty sure the buyer would file such transaction on his own and pay the tax..... yeah right)

[68Hawk]

Originally Posted by chriskim

I already contacted IRS to look into this....

That's pretty effing weird of you to involve yourself.
I need to remember not to share what I buy and sell on this forum I guess, who knows which member is going to think it's their place to rummage.

[chriskim]

Originally Posted by 68Hawk

That's pretty effing weird of you to involve yourself.
I need to remember not to share what I buy and sell on this forum I guess, who knows which member is going to think it's their place to rummage.

LOL... u know I was kidding right? I honestly doubt that was a legit transaction, certainly IRS wouldn't have any record. (May be Vegas Dave really contacted IRS)

[68Hawk]

Originally Posted by chriskim

LOL... u know I was kidding right? I honestly doubt that was a legit transaction, certainly IRS wouldn't have any record.

Nope, didn't know you were kidding.
Who publicizes a non legit transaction? It doesn't take long for the mass of eyes who are suddenly interested to start asking questions, and you look like an absolute dill weed if you out yourself as a simple agrandizer.
No more playing in the deep end of the pool for that person I guarantee it, most of these transactions happen because of VERY good faith that it will consumate.

[steve B]

Originally Posted by chriskim

I already contacted IRS to look into this, they didn't charge sales tax on this transaction. (I am pretty sure the buyer would file such transaction on his own and pay the tax..... yeah right)

A business would have a resale number and anything bought for inventory is sales tax exempt. (In my state at least, not sure about others. )

Now if it's still in inventory at the end of the year, they'd probably be taxed as profit assuming the inventory increased over the previous year.
My city also charges a tax on business inventory stored in the city.