Not sure if this has been posted..Mastro in the Chicago Tribune

[whitehse]

I was reading my Morning Tribune and ran across this "problem solver" column that I pasted below as I couldnt get the link to work. Looks like someone else is having issues with Mastro.

Hopefully this issue is settled as mentioned in the column. This type of thing definitly does not make the world of sportscards look very good...or does it really matter to someone outside our hobby?

Here is the link if anyone needs to go directly to the Tribune and read it

http://www.chicagotribune.com/news/c...2716082.column


Mastro Auctions slow in paying seller after company halted business
Jon Yates

What's Your Problem?

August 6, 2009
E-mail Print Vote For many baseball fans, it would be like manna from heaven -- an unexpected inheritance of extremely rare, extremely old baseball cards.

But Louis Dodaro fancies himself a surfer, not a baseball fan.

So when his uncle passed away last year and left him a stash of 1930s Goudey cards, the Riverwoods resident simply shrugged.

"I know some people would be drooling over this," Dodaro said. "I'm not a baseball card collector. I really don't know too much about this."

Still, he realized the cards that were at least 70 years old were valuable. So he plucked out a few of his favorites (including a couple of Lou Gehrigs) then gathered the remaining 136 cards for sale.

In September, he took the cards to Mastro Auctions in Burr Ridge. The 13-year-old company had received international media coverage for selling a lock of Elvis Presley's hair for $115,000, the infamous Steve Bartman baseball for $106,600 and a 1909 T206 Honus Wagner baseball card for $1.62 million. "They had a great reputation," Dodaro said. "I was very selective about these cards and who I went to."

But Mastro also had experienced its share of controversy. As reported in the Tribune last August, federal agents investigated the company for possible "shill bidding" in which bogus bids are submitted to drive up the price. No one has been charged.

Dodaro said he thought his cards were in good hands.

"I felt very comfortable," he said.

He felt even better when the cards sold in Mastro's February auction. But Dodaro said he wasn't told the sale price -- or how much he would receive. Weeks later, before Dodaro received payment, Mastro halted business.

On March 6, a group of Mastro employees bought the firm's assets and opened a new company, Legendary Auctions, based in Lansing.

Dodaro said he contacted a former Mastro employee, who promised he'd be paid in March. When that didn't happen, he called again and was told he'd be paid in June. Again, he did not receive a check.

By the time he contacted What's Your Problem? in July, he had almost given up.

"I have no indication when I'm going to get paid or even if I'm going to get paid," Dodaro said. "I called a couple times. They told me to call the controller for Mastro. I called. He never called back."

The Problem Solver called Doug Allen, a former Mastro employee who is president and chief executive at Legendary Auctions.

Allen said he no longer has any responsibilities at Mastro, which shut down because of financial problems. The first priority, he said, was to pay back money it owed to the bank. After that, Mastro intended to pay Dodaro and all other consignors, he said.

"They're not filing bankruptcy. They're not insolvent," Allen said. "They just have liquidity issues."

He said he remains in contact with the folks at Mastro, but Legendary Auctions is not responsible for Mastro's debts. Legendary, he said, is a completely separate entity.

"It's not a shell game where we said, 'Let's close this company and start a new one,' " Allen said. "It's not that."

Allen said he retained some records from Mastro, which showed Dodaro was owed $1,800 for his baseball cards. He promised to call Mastro's controller, Walter Tomala, and ask where Dodaro's money is.

The Problem Solver left repeated phone messages for Tomala but did not hear back. On Monday, the Problem Solver called Legendary Auctions' vice president and chief operating officer, Mark Theotikos, who also is a former Mastro employee. Theotikos promised to contact Tomala as well.

Tuesday morning, Tomala left a message on the Problem Solver's voice mail that said Dodaro's $1,800 check was in the mail.

"That's terrific," an elated Dodaro said. "When the check actually shows up and clears, I'll feel pretty good about it."

Dodaro said he plans to keep the half-dozen cards he still has, including the Gehrigs.

"They're probably going to be something I pass along to my future family," he said.

[calvindog]

Originally Posted by whitehse

The Problem Solver called Doug Allen, a former Mastro employee who is president and chief executive at Legendary Auctions.

Allen said he no longer has any responsibilities at Mastro, which shut down because of financial problems. The first priority, he said, was to pay back money it owed to the bank. After that, Mastro intended to pay Dodaro and all other consignors, he said.

"They're not filing bankruptcy. They're not insolvent," Allen said. "They just have liquidity issues."

He said he remains in contact with the folks at Mastro, but Legendary Auctions is not responsible for Mastro's debts. Legendary, he said, is a completely separate entity.

"It's not a shell game where we said, 'Let's close this company and start a new one,' " Allen said. "It's not that."

Allen said he retained some records from Mastro, which showed Dodaro was owed $1,800 for his baseball cards. He promised to call Mastro's controller, Walter Tomala, and ask where Dodaro's money is.

The Problem Solver left repeated phone messages for Tomala but did not hear back. On Monday, the Problem Solver called Legendary Auctions' vice president and chief operating officer, Mark Theotikos, who also is a former Mastro employee. Theotikos promised to contact Tomala as well.

My favorite line: "It's not a shell game where we said, 'Let's close this company and start a new one,' " Allen said. "It's not that."

Doug is like the baseball player who holds out for a bigger contract and then turns to the camera and says "it's not about the money."

[Peter_Spaeth]

"It's not a shell game where we said, 'Let's close this company and start a new one,' " Allen said. "It's not that."

[Peter_Spaeth]

As Hamlet said, the lady doth protest too much, methinks.

[RichardSimon]

This crap has gotten so much negative public exposure,,, another black eye for the hobby and who do we have to blame for it?

[bijoem]

"It's not a shell game where we said, 'Let's close this company and start a new one,' " Allen said. "It's not that."


I love that quote.

It reminds me of the Wizard of Oz....
"Pay no attention to that man behind the curtain."

[Jim VB]

I guess I don't see this as a black eye for the entire hobby. When a store I have a gift certificate for goes belly up, I don't hold the entire industry responsible, just that store and their owners.

I see this as a black eye for Mastro, for sure, and for the principals involved. The attempt to walk away from a financially struggling company and start up another company, with the purchased assets of the first, while not addressing the liabilities, is both troubling and transparent.

I don't even think that Mastro's, er... I mean Legendary's biggest problem is bidders boycotting. They will still have some, if not most bidders. Their biggest problem will be consignors not consigning, going forward. If word is out industry wide that a company is having trouble paying consignors, it won't take long for those consignments to dry up. When that happens, the whole bidder thing takes care of itself, very quickly.

As far as the hobby goes, there are still plenty of auction houses around and most pay their consignors, and pay them on a timely basis.

[calvindog]

Has anyone ever seen John Rogers and Doug Allen in the same room together?

[RichardSimon]

Jim, what I should have said is that there are so many individual black eyes getting publicity in the hobby that another one just adds to the negative public perception, especially when it happens to the industry "giant".
The king is dead, long live the king.

[jmk59]

Originally Posted by whitehse

"It's not a shell game where we said, 'Let's close this company and start a new one,' " Allen said. "It's not that."

Well that settles it then. We were wondering.

[botn]

I am still trying to digest this one Peter Spaeth posted yesterday.

From the NY Daily News
Allen says the matter is out of his hands. The responsibility to pay consigners and other creditors belongs to Mastro Auctions, which was owned by Silk Road Equity. Silk Road has a small stake in the new auction business, Allen adds, but Legendary Auctions is a completely separate entity from Mastro Auctions. "I will share their frustrations until everybody who did business with Mastro Auctions is made whole," Allen says. "I wish we could meet those old obligations and start with a clean slate. But legally, we have done everything appropriate."

I was remaining neutral with regards to my stance on the Mastro/Legendary issues however the above is completely distasteful and unacceptable. If Doug is being quoted accurately his days are numbered in the hobby.

[slidekellyslide]

Originally Posted by botn

I am still trying to digest this one Peter Spaeth posted yesterday.

From the NY Daily News
Allen says the matter is out of his hands. The responsibility to pay consigners and other creditors belongs to Mastro Auctions, which was owned by Silk Road Equity. Silk Road has a small stake in the new auction business, Allen adds, but Legendary Auctions is a completely separate entity from Mastro Auctions. "I will share their frustrations until everybody who did business with Mastro Auctions is made whole," Allen says. "I wish we could meet those old obligations and start with a clean slate. But legally, we have done everything appropriate."

I was remaining neutral with regards to my stance on the Mastro/Legendary issues however the above is completely distasteful and unacceptable. If Doug is being quoted accurately his days are numbered in the hobby.

This is exactly what I said a long time ago...I am certain they did everything legally to make sure their new enterprise has nothing to do with Mastro. It's sad that the only people Mastro seems to be taking care of are the ones that come to this board because they know a good portion of their customer base participates or reads this forum.

[RichardSimon]

Originally Posted by slidekellyslide

This is exactly what I said a long time ago...I am certain they did everything legally to make sure their new enterprise has nothing to do with Mastro. It's sad that the only people Mastro seems to be taking care of are the ones that come to this board because they know a good portion of their customer base participates or reads this forum.

It is not sad that they are only taking care of the people who come to this board. It is a sign of their immorality.

[calvindog]

Originally Posted by botn

I am still trying to digest this one Peter Spaeth posted yesterday.

From the NY Daily News
Allen says the matter is out of his hands. The responsibility to pay consigners and other creditors belongs to Mastro Auctions, which was owned by Silk Road Equity. Silk Road has a small stake in the new auction business, Allen adds, but Legendary Auctions is a completely separate entity from Mastro Auctions. "I will share their frustrations until everybody who did business with Mastro Auctions is made whole," Allen says. "I wish we could meet those old obligations and start with a clean slate. But legally, we have done everything appropriate."

I was remaining neutral with regards to my stance on the Mastro/Legendary issues however the above is completely distasteful and unacceptable. If Doug is being quoted accurately his days are numbered in the hobby.

How can Doug distance himself from Mastro when he's the President of Ketap, the company formerly known as Mastro? Doug IS Mastro.

And how would you like to be a consignor of Mastr--woops Ketap--woops Legendary when the music stops and they've got your cards and money? And Doug doesn't take your calls or emails? Oh wait -- that's already happened.

[mikedenero]

Originally Posted by calvindog

How can Doug distance himself from Mastro when he's the President of Ketap, the company formerly known as Mastro? Doug IS Mastro.

I apologize, in advance, if what I am about to ask has already been revealed on a prior related thread, but does anyone know what Doug's ownership stake in Mastro/Ketap is (or was) as well as his ownership stake in Legendary or it's parent company?

[Matt]

When I first read Ketap I read it as Kaput.

[Tony Gordon]

Greetings from the Illinois Secretary of State's resident vintage collector. I can vouch for the accuracy of our website. A lot of folks work very hard to make sure that website (www.cyberdriveillinois.com) is up to date and accurate. If you go to the corp/LLC search on the site and punch in Mastro, you'll see three or four companies using the name. It seems to me that the old Mastronet Inc. was parceled off into three or four companies. As a result, any creditor (a consignor) of Mastronet would most likely have to file a lawsuit and name as defendants all the new Mastro entities and let the courts sort out which one or ones have liability.

As a side note, Illinois Secretary of State Jesse White played minor league ball in the 1950s and was a minor league teammate of Ernie Banks. He was a pretty good second baseman and not a bad hitter.

[calvindog]

Tony, thanks for that. So apparently as of today, Doug Allen is the President of Ketap, formerly known as Mastro Auctions, Inc.

So why does Doug continue to say that he has nothing to do with Mastro?

[JEFFV96MASTERS]

Post / opinion no longer available

[whitehse]

I started this thread because of a article that appeared in the Chicago Tribune a few weeks back. I read today that there is a resolution at least to the person that was mentioned in the original article. Look all the way down to the bottom of the column

http://www.chicagotribune.com/news/c...7557573.column

[slantycouch]

Originally Posted by whitehse

I started this thread because of a article that appeared in the Chicago Tribune a few weeks back. I read today that there is a resolution at least to the person that was mentioned in the original article. Look all the way down to the bottom of the column

http://www.chicagotribune.com/news/c...7557573.column

WOW! Glad to hear it. Didn't see that coming.

[turtleguy64]

If you are a Feb. Mastronet consignor who has not been paid until now(like me),and you've received the Aug. Legendary Auction catalogue,do this: re-package it and send it back to Legendary with Attn: Doug Allen on the front.Media mail will do fine.Include a courteous note that you would love to bid on their auction but you have not as yet received your Mastro consignment money.It can't hurt and you are simply stating a fact.I am doing this as my protest.

[Mark]

A nice way to say it. I wish that their next auction had more in it so that you could be paid back faster.

[RichardSimon]

Originally Posted by Mark

A nice way to say it. I wish that their next auction had more in it so that you could be paid back faster.

How could the auction have more in it? The word is getting out that consignors from Feb. have not been paid. Who wants to consign and worry about not getting paid?
Anybody want to forecast an over/under number on how long Legendary can stay in business. I make the line 13 months, over or under?

[Mark]

swimsuit models.

[botn]

Gosh I think they may too great to even get to 13 months. Unless of course they can promote their business by listing some cards for $25,000 on ebay.

[Sean_C]

American Memorabilia is already doing that. Unless Doug wants to put on a speedo (great, there goes my ability to sleep or keep down solid foods for the next few days.)....

Originally Posted by Mark

swimsuit models.

[turtleguy64]

Is it not true that Legendary bills consignors for getting their items professionally graded?I would like to know since a friend of mine consigned to their first auction and received a bill for 1,000.00 for getting some of his stuff graded.Anyone out there have the same experience?

[HRBAKER]

Unless I misread the post (very possible at my age and as a micro-mind), there is a post on the Non-Sports board where they sent out and billed a lady $40,000 for grading. I am sure at a level like that it was something that was agreed to beforehand.

[Wesley]

Originally Posted by turtleguy64

Is it not true that Legendary bills consignors for getting their items professionally graded?I would like to know since a friend of mine consigned to their first auction and received a bill for 1,000.00 for getting some of his stuff graded.Anyone out there have the same experience?

I thought that Mastro had a deal with grading companies to have cards graded for $7 each irrespective of tier, but I guess that is not true. Doug Allen told me that the cost of grading a single card was $250, and that was the reason why Mastro could not pay the remaining $200 due to me from my February consignments.

$250 seems like a lot of money to grade one card, but I told Doug if he could show me a copy of the PSA invoice showing the $250 charge, that we could just call it the day. It has been three weeks and I still have not heard anything from Doug.

[turtleguy64]

I took a quick look at the Legendary August auction and it was a strange mix of some quality stuff and some "let's add more lots in spite of the values."I am sticking with my protest plan and will return the catalogue this weekend.