Counterfeit Sports and Celebrity Memorabilia

• IRS uncovers largest U.S. forgery ring ever.
• Experts say more than half of all autographed sports and celebrity memorabilia is bogus.

In the mid 1990s hundreds of thousands of pieces of autographed sports and celebrity memorabilia were confiscated as part of a nationwide investigation which uncovered the largest forgery ring in U.S. history.  As a result, it is estimated that at least 50% (and some experts say, over 90%) of all autographed sports and celebrity memorabilia is counterfeit.  At the time of the initial investigations, sales of forged memorabilia were believed to exceed $100 million annually.

FBI Investigation
This all came to light when the Chicago Division of the FBI opened an investigation in the early 1990s they called "Four Ball".  By the mid 1990s they had convicted 14 individuals in 5 states of marketing forged and fraudulently authenticated Chicago athletes' autographed memorabilia.

Phase I.  The investigation led to an even larger IRS investigation called "Operation Bullpen".  Realizing that this was a nationwide problem, the FBI in San Diego along with the U.S. Attorney's Office and the IRS commenced Phase I of Operation Bullpen in 1997.  Five forgery rings were uncovered and on April 11, 2000, 26 people were convicted of marketing counterfeit autographed sports memorabilia, all with fake authentications.

Phase II.  In the next five years, the FBI pursued Phase II of Operation Bullpen.  On September 11, 2001 18 search warrants were executed in an investigation that spread over 12 states.  The FBI uncovered 13 forgery rings and eventually convicted 26 individuals.  Included in the convictions were numerous Internet auction sites, including one that was the largest seller in the world of signed celebrity photographs.

Phase III.  It is our understanding that Phase III of Operation Bullpen dispersed the confiscated forged and phony equipment and memorabilia to charities in the San Diego community.  Although the intention was honorable, the wisdom of disseminating counterfeit material rather than destroying it is dubious at best.

The Outcome
As a result of this investigation, Major League Baseball instituted the practice of placing unique holograms on "game used" items.  If you want to learn more, Kevin Nelson's well researched and detailed Operation Bullpen: The Inside Story of the Biggest Forgery Scam in American History is the book to read.  The FBI itself provides a quick overview of Operation Bullpen.

Not everyone who sold counterfeit pieces knew they were phony.  Many dealers were duped too and innocently (or ignorantly) bought and sold bogus memorabilia.  Most of the pieces originally went into private collections, but as the owners are now starting to sell some of these items, they are discovering what they have is worthless.  And sadly, we are starting to see these items on the marketplace in record numbers.

What To Do
What should you do if you think you might have a counterfeit piece of memorabilia?  First, talk with an appraiser qualified to determine the value of your item.  He'll know the reliable dealers and authenticators. and can advise you what to do. You might also need legal advice about your purchase, or an expert witness if the matter goes to court.

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Summary:  Experts say over 50% of sports and celebrity memorabilia is fake!  IRS sting Operation Bullpen, conducted with the FBI, uncovered 13 forgery rings and convicted 26 individuals.  If you're buying or selling, don't get stung yourself.  Check with a qualified appraiser first.

Appraising vs. Authenticating Sports Memorabilia

• Often confused, appraising and authenticating are actually quite different.
• “An item can be appraised without authenticity.”

Appraising and authenticating are two different professions. An appraiser determines the value of an autographed item; an authenticator determines if the signature is genuine. Similarly, an appraiser estimates the market value of a rare baseball card or team jersey; an authenticator determines if the item is real or a fake.

Authenticating Firms
There are several major authenticating firms that will provide a COA (Certificate of Authenticity) which will be readily accepted in the industry, by collectors and by the courts. Normally, you have to send your ball or other item to the authenticator, but if you are hesitant to do so, several of the firms authenticate on-site at shows around the country. A web search for “sports memorabilia conventions” will pull up a list of events and organizers..

Auction Houses
Also, some of the major auction houses specializing in sports memorabilia, have authenticators on staff. If they accept your item for auction, they will normally guarantee its authenticity. The cost of this service is included in the auctioneer's commission.

Frauds
Regretfully, there are also unethical individuals who claim to be authenticators but whose COAs literally aren't worth the paper they're written on. An official looking COA or an impressive website doesn’t guarantee a valid authentication. Caveat emptor! (Email us for a current list of the authenticators we recommend.)

Hypothetical Appraisals
It is interesting to note that an item can be appraised without authenticity. This is called a hypothetical appraisal and is based upon information, photographs, etc. provided to the appraiser and accepted at face value. In this case the authenticity rests upon the information supplied to the appraiser. At first glance, hypothetical appraising might seem questionable, but it is a common and necessary practice, especially after a loss, such as a fire or theft, when the item is no longer available for the appraiser to inspect.

When you have an item you want appraised but don't have a COA, talk with your appraiser. He can recommend the best and most ethical course of action.

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Summary: An appraiser will tell you what your sports or other item is worth; an authenticator will tell you if it's real. As a rule, professional appraisers don't authenticate, and authenticators don't appraise.

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