Well i thought the "big one" wasnt that big...but this lawsuit that PCGS has just announced is going to make a lot of people unhappy....get ready to check your coins!

Below is the original story regarding the PCGS lkawsuit against a number of coin doctors, the real "big one"!

I for one am very pleased with this announcement but when i read the names of who is involved i started to get worried!

These are big names in the industry, especially when it comes to buying and selling coins to collectors.

I for one have sold many thousands of dollars worth of coins to one of the named "doctors" at coin shows....luckily i have never purchased from him! But how many other dealers have purchased from these 6 people and then onsold these slabbed doctored coins to other people?

They have been doing this for many many years and only now is the damage being noticed....so for everyone out there start checking your coins with a fine tooth comb! and if they look suspect get PCGS to check them....i believe PCGS wouldnt be the only company where these coins were submitted with NGC receiving there fare share as well....if they are sending coins to PCGS then why not NGC?....all the dealers were also NGC dealers as well...very worrying.

Overall though KUDOS to PCGS! name those bastards~!

Federal Lawsuit Filed Against ?Coin Doctors? by Collectors Universe / PCGS

By PCGS on Friday, May 28, 2010

Filed Under: Coin Grading & Authentication, Coins and the Law, Counterfeits & Fraud, Dealer News, Featured, PCGS

Professional Coin Grading Service (PCGS) today sent out a Press Release announcing a major lawsuit has been filed in United States District Court, Central District of California, against six individuals claiming they engaged in a pattern of racketeering activity, breach of contract, conspiracy, unfair competition and fraud for allegedly submitting ?doctored? coins to PCGS for grading on multiple occasions for a period of years.

The Defendants named in the suit include: Al Rossman of Nevada, Rick Wesslink of California, Robert Lehmann of Maryland, in addition to three members of the Professional Numismatists Guild ; Eric Steinberg of Florida, Silvano DiGenova of California, and Greg Krill of California

PCGS stated that as many as 10 other defendants could be added to the Complaint.

The suit claims the dealers violated federal laws, including the Lanham Act involving interstate commerce and RICO racketeering statutes, and also alleges ?unlawful, unfair and fraudulent business practices? for submitting coins that were deceptively altered in an attempt to increase their value.

Click Here to view a Copy of the Complaint

The Complaint states: ?Defendants knew that these coins had been ?doctored,? by themselves and/or other persons engaged by them for that purpose. Their methods included lasering the surfaces of extremely rare proof gold coins to remove surface imperfections, building up commonly-worn or weakly-struck portions of coins, and other physical and chemical processes. Defendants represented to PCGS that these coins had natural surfaces, intending to deceive PCGS?s graders so that the ?doctored? coins would be certified by PCGS and then sold in the rare coin marketplace.?

A couple of examples given in the complaint include the following coins:

1885 $5 gold piece, originally submitted to PCGS on Dec 16, 2009 by Steinberg on behalf of Defendant Rossman. Foreign substance added to coin?s surface to cover marks.

1879 $4 Stella gold piece, Originally submitted by Heritage on May 8, 2008. Resubmitted on August 28, 2008 by DiGenova after having been laser treated to remove lines. PCGS refused to grade the coin.

The suit claims the ?Defendants have caused, and are continuing to cause, substantial and irreparable damage and injury to Collectors Universe and to the public and Defendants have benefited from such unlawful conduct and will continue to carry out such unlawful conduct and to be unjustly enriched thereby unless enjoined by this Court.?

Collectors Universe is suing for triple damages as well as all profits made through these deceptive submissions.

?Every owner of a PCGS coin should be confident in the fact that PCGS stands behind its product guarantee 100%. Over the past 24 years PCGS has paid over $7 million under its guarantee program for coins which have developed some type of problem due to coin doctoring or some other issue,? said David Hall. ?Occasionally our graders have been deceived by the very clever application of foreign substances only to have these substances eventually spoil the coin and necessitate our buying it back. We believe we have compelling evidence against several individuals who, working together and separately, have made a business out of this practice. We hope the courts will provide a suitable remedy to this problem.?

?We firmly believe coin doctoring to alter a coin?s appearance is clearly illegal under the law,? Hall continued, ?and we know that it often ruins coins long term and certainly deceives grading services and future coin buyers. Today?s announcements of the development of scientific doctoring detection and also the lawsuit filed against alleged coin doctors is another big step in this process, but we will not be finished until we eliminate this unsavory practice once and for all.?

PCGS is a division of Collectors Universe, Inc. (NASDAQ: CLCT)