The Airing of Grievances: PSA Professional Sports Authenticators

[mjohnatgt]

It's not Festivus yet, but it's high time we took the scammers and enablers to task for the scandals of this year and previous ones. Too many collectors have no knowledge of the history of these companies and continue to buy in to the process because the word is not out.

Professional Sports Authenticators is a grading company headquartered in California under the Collectors' Universe umbrella, a publicly traded company.
Founded 30 years ago, they have been led by David Hall, Joe Orlando, and Steve Sloan. Joe Orlando's mantra at PSA was "NEVER GET CHEATED."

00000001) The original card graded by PSA as a Near Mint - Mint NM-MT 8 (out of 10) and world famous is the 1909 T206 Honus Wagner once owned by Wayne Gretzky. It was found to be trimmed by auctionhouse owner Bill Mastro after the fact, and Bill went to jail as part of a scandal with his auction company. PSA reviewed the card and still claimed it was not trimmed.

2) Grade Guarantee (note: no expiration date)
https://www.psacard.com/About/FinancialGuarantee/

The PSA Financial Guarantee of Grade & Authenticity
The PSA Financial Guarantee of Grade & Authenticity (“Guarantee”) is fundamental to PSA's concept of third-party grading. Subject to the exceptions noted below, the Guarantee ensures the accuracy of the grade assigned to any PSA-graded card.

PSA guarantees that all cards submitted to it shall be graded in accordance with PSA grading standards and under the procedures of PSA.

If PSA, in fact, concludes that the card in question no longer merits the PSA grade assigned or fails PSA’s authenticity standards, PSA will either:

Buy the card from the submitter at the current market value if the card can no longer receive a numerical grade under PSA's standards or,

Refund the difference in value between the original PSA grade and the current PSA grade if the grade is lowered. In this case, the card will also be returned to the customer along with the refund for the difference in value.

The current market value is determined by PSA, based in part on Sports Market Report and SMR Online values and/or recent prices realized from the marketplace. PSA will be the sole determiner of the current market value.

Certain exceptions to the Guarantee apply, including, but not limited to, the following: the Guarantee does not apply to any card as to which an obvious clerical error has been made with respect to the assigned grade or description; the Guarantee does not apply to any card that has been removed from the PSA holder or any card for which the PSA holder shows evidence of tampering; the Guarantee does not apply to any card that has been environmentally damaged due to improper storage or natural disasters, such as fire and flood; the Guarantee does not apply to cards exhibiting environmental deterioration subsequent to initial grading; the Guarantee applies only to the grade assigned to the card and does not apply to the authenticity of any autograph nor the grade assigned to any autograph; and the Guarantee does not apply to, and cannot be utilized by, the original submitter (or the original submitter’s agents, employees, affiliates or representatives) of the graded card.

ALL PERSONS HEREBY: (I) CONSENT TO PERSONAL JURISDICTION OF THE COURTS OF THE STATE OF CALIFORNIA WITH RESPECT TO ANY LEGAL ACTION TO ENFORCE THE TERMS AND CONDITIONS OF, OR OTHERWISE ARISING UNDER OR WITH RESPECT TO, THIS GUARANTEE; AND (II) AGREE THAT THE SUPERIOR COURT OF CALIFORNIA, COUNTY OF ORANGE, OR, IF APPLICABLE, FEDERAL DISTRICT COURT SITTING IN THE COUNTY OF ORANGE, STATE OF CALIFORNIA, SHALL BE THE SOLE AND EXCLUSIVE VENUE, AND THE STATE OF CALIFORNIA SHALL BE THE SOLE FORUM, FOR THE BRINGING OF SUCH ACTION; AND (III) AGREE THAT THIS AGREEMENT SHALL BE CONSTRUED AND INTERPRETED IN ACCORDANCE WITH AND SHALL BE GOVERNED AND ENFORCED IN ALL RESPECTS ACCORDING TO THE LAWS OF THE STATE OF CALIFORNIA. THE GUARANTEE DOES NOT APPLY TO ANY CLAIMS BROUGHT OUTSIDE OF THE COURTS OF ORANGE COUNTY, CALIFORNIA.

3) PSA Grading Standards:
https://www.psacard.com/resources/gr...andards/#cards

Ungradable Cards
PSA will not grade cards that bear evidence of trimming, re-coloring, restoration, or any other forms of tampering, or are of questionable authenticity.

No Grade Definitions
If your card is returned as ungradable, that determination was made based on one of the following reasons:

N-1 Evidence of Trimming - When a card's edge appears to have been altered. A card doctor may use scissors, scalpel, cutter, or any other sharp instrument. A card that appears trimmed: A hooked appearance along the edge, unusually sharp or uncommon edges for the issue, an inconsistent tone to the color of the edge in question or a wavy, unnatural look to the edges.

N-2 Evidence of Restoration - When a card's paper stock appears to have been built up - for example, when ripped corners are built up to look like new corners.

N-3 Evidence of Recoloration - Where a card's color appears to have been artificially improved.

N-4 Questionable Authenticity - This is the term used when a card appears to be counterfeit or when the autograph is deemed to be not genuine.

N-5 Altered Stock - This includes, but is not limited to characteristics on the card that appear to show some form of alteration such as paper restoration, crease/wrinkle pressing or enhanced gloss.

N-6 Minimum Size Requirement - When a card is significantly undersized according to factory specifications. You will not be charged the grading fee.

N-7 Evidence of Cleaning - When a whitener is used to whiten borders or a solution is used to remove wax, candy, gum or tobacco stains.

N-8 Miscut - This term is used when the factory cut is abnormal for the issue, causing the card’s edges to deviate from their intended appearance. Grading fees are not charged in this instance.

N-9 Don't Grade - When we do not grade an issue. The cards may be oversized or an obscure issue. You will not be charged the grading fee.

N-0 Authentic Only - This means that PSA is only certifying that the item is genuine, without a numerical grade. This may be due to the existence of an alteration, one with malice or otherwise, a major defect or the original submitter may have requested that PSA encapsulate the card without a grade. The "Authentic" label means that the item, in our opinion, is real but nothing more.

AA Authentic Altered - This means that while PSA is certifying that the item is genuine, due to the existence of alterations, the item cannot receive a numerical grade. The term altered may mean that the card shows evidence of one or more of the following: trimming, recoloring, restoration, and/or cleaning. Items receiving the "Authentic Altered" designation, in our opinion, are genuine with the presence of some type of alteration. This is done on a case-by-case basis only, and must be notated on the submission form at the time of submission.

4) PSA has graded altered cards by known scammers like Gary Moser for years, opening up them to fiscal liability for millions of dollars in altered cards. They currently only have $800,000 in the bank to cover these liabilities that have recently been uncovered by VOLUNTEERS ON A MESSAGE BOARD.

1952 Topps Mantle thread that started it all.
https://www.blowoutforums.com/showthread.php?t=1290614

Known Gary Moser submissions:
https://www.blowoutforums.com/showthread.php?t=1296884

I will continue to add to this post.

[mjohnatgt]

Post reserved for PSA response.

Wow, that was quick. Posted on Net54, here is the unofficial PSA answer:

http://www.net54baseball.com/showthread.php?t=269583

06/04/2019:

PSA is aware of recent hobby message board activity and is conducting its own investigation into the matter.

We take consumer protection seriously, as evidenced by the thousands of altered and counterfeit cards that we reject each year, our on-going investments in grading and holder technology, and long track record of working with law enforcement to eliminate fraud from the hobby.

PSA processes more than two million cards each year and will not let isolated acts from a few dishonest actors deter consumer confidence in our brand. We will act against anyone who violates PSA’s Terms & Conditions by knowingly submitting altered cards for authentication and grading. While our actions will be conducted privately, please know that the impact will be felt by those attempting to mislead collectors for personal profit.

As with any financial transaction, if you are unsatisfied with your purchase, contact the seller to initiate a refund request. If the seller is unknown, you may send the card to PSA for review under our Financial Guarantee of Grade and Authenticity.

PSA is well-versed in combating fraud and we have addressed these issues in a professional and direct way for nearly thirty years. After all these years, our hobby is stronger than ever. Rest assured that PSA will not let the actions of a few have any lingering impact on the hobby or the PSA brand.

Steve Sloan
PSA President

https://forums.collectors.com/discus...message-boards

[mjohnatgt]

For what it's worth, I got back into the baseball card collecting industry about 5-6 years ago, when a friend wanted me to sell his Magic collection. I have submitted exclusively with PSA since then because of their set registry and sales prices. I will no longer purchase any graded cards or submit to grading companies until they confess in public that they're either WOEFULLY INEPT to actually detect alterations and PAY OUT THE REFUNDS or publicly expose and sue their complicit employees, if this was done as an inside job. I am closing my set registries, and will hold them until this is resolved in a positive manner. If they do not react in such a way that I'm impressed and can trust them again, I will sell all of my graded cards.

[KhalDrogo]

It’s a start, but I’m going to withhold any commendation for them until I see how the process plays out.

[armpit69]

Part of the problem, to me, is that hardly anyone seems to be aware of this problem. I went on the collectors universe message board on Yahoo finance yesterday and there were people talking about it but the stock is near its all time highs. This story needs to hit the mainstream news media is in order for something to happen .

[superdan49]

This is excellent material. I wonder if there will be any Festivus Miracles?

[mjohnatgt]

Posted this on all my sets on the registry:

Deleted all but one of my cards in every registry set until PSA remedies the situation of certifying thousands of altered cards by Gary Moser and other with number grades, invalidating their Pop Report and Set Registry. This is my boycott of the Set Registry until this matter is settled to my satisfaction.

[RiceBondsMT2Yng]

"any card suspected of being altered" is super vague. Are they going to circulate guidelines for what qualifies, or should we just use common sense? If they want to protect their brand, they should go all in with the common sense standard. Stand behind every slab. The way to save this company is to figure out a way to detect alterations (other than reading BO) and then screen any card. They'd take a staggering hit short term but I don't think anything but this could rehabilitate them if they're taking the long view.

[mjohnatgt]

Agreed. At least they didn't go full on Brent Huygens at PWCC and say "before and after pictures are not evidence." They are willing to look at the photos and make conclusions based on the submitters.
With the advent of the internet, they can no longer do shady things and get away with it. I even sent PSA President Steve Sloan my phone number in case he wants to call me and discuss ways ahead.

[luckyduck]

I feel bad for saying this in the grading section, but it's turning out that card grading isn't worth anything.