Rare Coin Worth Nearly $400,000 Missing From Post Office

[J.A. Collection]

Rare Coin Worth Nearly $400,000 Missing From Western Springs Post Office

 

By Darren McRoy

 

An extraordinarily rare coin more than two centuries old that was sold for $379,500 in a May auction has been missing since passing through the Western Springs U.S. Post Office five months ago. Efforts to locate the coin have so far been fruitless.

 

The 1795 $10 gold eagle was purchased from auction house Spink Smythe for $330,000 (plus a $49,500 buyer’s premium) on May 3 and sent by registered mail on May 16, but never reached its intended destination at a Western Springs address despite having been traced to the Village post office.

 

The USPS Office of Inspector General (USPSOIG) interviewed Western Springs postal employees, who “denied any knowledge relating to the whereabouts of the coin,” according to a report from Scott Pierce, the deputy special agent in charge of the USPSOIG’s Great Lakes Field Office.

 

“Following receipt of the Office of Inspector General report of investigation, Postal Service management disciplined two employees for failing to maintain the sanctity and security of the mail,” Pierce wrote in the report. “The coin has not been recovered.”

 

According to an article in Coin World, the FBI has also been consulted on the matter.

 

Western Springs Postmaster Gary Krause declined to speak on the case, saying that he could not comment about “internal issues.”

 

The coin in question was by far the most expensive in Spink Smythe’s May 3 catalogue—and even then, its sale price doubled the auction house’s estimated value of $150,000-$170,000.

 

According to the auction house’s catalogue, only 5,583 Eagle $10 pieces were minted in 1795, the first year of their production—but what sets this particular piece apart is that the branch upon which the eagle is perched on the reverse of the coin has only nine leaves instead of the more-common 13. It is estimated that only about 300-500 of this “nine-leaf” variety of coin were ever struck, and only about 20 remain extant.

 

Beyond that, this particular coin is said to be one of the best-preserved of its type, one of perhaps 10 free from “some post-strike malidy [sic]—be it cleaning, mounting, or otherwise,” the catalogue declared [from link, select May 3]. The coin is graded “mint state 61,” meaning that while it does show blemishes and flaws, it has never been circulated.

 

“You would be hard-pressed to find an example that surpassed the present in terms of originality or eye appeal—a truly once in a generation offering,” the catalogue said.

 

Coins of this particular rarity are a magnet for thieves, said Doug Davis, the founder and president of the Numismatic Crime Information Center, which has advised investigators on this case and others involving missing or stolen currency.

 

However, Davis said that while there is significant money to be made in rare coins, a coin this distinct and unique would be difficult to unload for profit.

 

“It’s one of those coins that’s not going to be dealt on the market without someone noticing it,” Davis said. “It’s not going to be sold unless it goes underground to a private collection or perhaps to across the waters to Europe."

 

“It’s out there somewhere.”

 

Where, exactly, remains unclear.

[noow]

Ouch!

[Dudley the 1st]

Insurance will cover the financial loss, but this piece is irreplaceable. What a loss !

[Walkerfan]

UNBELIEVABLE that they have these type of security breaches and how disappointing for the buyer!!

 

This will just drive up insurance costs as well, as they will likely pass it along to the consumer rather than taking ownership for it!

[mtnstyne]

"Registered Mail items can be insured for up to $25,000 at your Post Office."

 

I don't think you can insure something that valuable through the mail. This quote is from the USPS website. I thought the maximum was $100k but still, why would anyone send it through the USPS who won't insure it's full value.

[Walkerfan]

It falls onto the corporate insurance of the auction house. I found this out, since I had wondered the same thing. You can only insure EXPRESS MAIL up to 5-6K, I believe. Not sure about REGISTERED but I thought it was less.

[gmarguli]

"Registered Mail items can be insured for up to $25,000 at your Post Office."

 

I don't think you can insure something that valuable through the mail. This quote is from the USPS website. I thought the maximum was $100k but still, why would anyone send it through the USPS who won't insure it's full value.

 

Because Registered Mail inside the US is one of the most safest and cost effective ways to ship something. Yes, they will only insure up to $25,000, but you can easily get private insurance to cover shipments above this. FYI, if you want the USPS to pay out the $25K and the item is worth more, you have to pay the handling fee for the actual full value.

 

I've shipped $100K+ packages with Registered Mail without any insurance. It's extremely safe. Express Mail is also very safe since it is tracked every step of the way like Registered Mail and it processed so fast that it doesn't have a lot of time to sit around in one place to get stolen.

[Walkerfan]

I can't imagine that they would use anything but Express or Registered mail for a 400K piece.

[MarkFeld]

I can't imagine that they would use anything but Express or Registered mail for a 400K piece.

 

Well, there apparently was a Brinks theft recently, but that was/is another viable option.

[Walkerfan]

I can't imagine that they would use anything but Express or Registered mail for a 400K piece.

 

Well, there apparently was a Brinks theft recently, but that was/is another viable option.

 

Yes, I just meant that it is not as 'safe' as Gmarguli or others may think, b/c it was implied that it must not have been used.

[PerryHall]

The advantage of registed mail is that someone has to sign for it every time it changes hands. The last person that signed for it will hopefully be fired if it just disappeared and there is no evidence of the storage safe being broken into.

[cpm9ball]

The advantage of registed mail is that someone has to sign for it every time it changes hands. The last person that signed for it will hopefully be fired if it just disappeared and there is no evidence of the storage safe being broken into.

 

I've watched numerous times at the PO when I go to pick up a registered package, and the "storage safe" at this branch is nothing more than a cabinet that is ALWAYS unlocked so anyone behind the counter can remove a package. Perhaps there are many others that are this lax with their security.

 

Chris

[PerryHall]

The advantage of registed mail is that someone has to sign for it every time it changes hands. The last person that signed for it will hopefully be fired if it just disappeared and there is no evidence of the storage safe being broken into.

 

I've watched numerous times at the PO when I go to pick up a registered package, and the "storage safe" at this branch is nothing more than a cabinet that is ALWAYS unlocked so anyone behind the counter can remove a package. Perhaps there are many others that are this lax with their security.

 

Chris

 

I understand what you are saying but as long as there is a signature chain of custody for registered mail, there will always be someone that can be held responsible.

[coinman_23885]

The advantage of registed mail is that someone has to sign for it every time it changes hands. The last person that signed for it will hopefully be fired if it just disappeared and there is no evidence of the storage safe being broken into.

 

I've watched numerous times at the PO when I go to pick up a registered package, and the "storage safe" at this branch is nothing more than a cabinet that is ALWAYS unlocked so anyone behind the counter can remove a package. Perhaps there are many others that are this lax with their security.

 

Chris

 

I understand what you are saying but as long as there is a signature chain of custody for registered mail, there will always be someone that can be held responsible.

 

But this is not necessarily fair. I'm sure that there is more than one postal carrier with the motive and opportunity to grab the coin. It might not have even been a clerk or delivery person for all we know. If such an employee is fired, with unionized labor, it can be a lot of headache to fire someone.

[coinman_23885]

"Registered Mail items can be insured for up to $25,000 at your Post Office."

 

I don't think you can insure something that valuable through the mail. This quote is from the USPS website. I thought the maximum was $100k but still, why would anyone send it through the USPS who won't insure it's full value.

 

Because Registered Mail inside the US is one of the most safest and cost effective ways to ship something. Yes, they will only insure up to $25,000, but you can easily get private insurance to cover shipments above this. FYI, if you want the USPS to pay out the $25K and the item is worth more, you have to pay the handling fee for the actual full value.

 

I've shipped $100K+ packages with Registered Mail without any insurance. It's extremely safe. Express Mail is also very safe since it is tracked every step of the way like Registered Mail and it processed so fast that it doesn't have a lot of time to sit around in one place to get stolen.

 

No matter how safe something may seem or actually be, I think it is still too risky. It doesn't take but one package to cause a significant financial burden.

[gmarguli]

"Registered Mail items can be insured for up to $25,000 at your Post Office."

 

I don't think you can insure something that valuable through the mail. This quote is from the USPS website. I thought the maximum was $100k but still, why would anyone send it through the USPS who won't insure it's full value.

 

Because Registered Mail inside the US is one of the most safest and cost effective ways to ship something. Yes, they will only insure up to $25,000, but you can easily get private insurance to cover shipments above this. FYI, if you want the USPS to pay out the $25K and the item is worth more, you have to pay the handling fee for the actual full value.

 

I've shipped $100K+ packages with Registered Mail without any insurance. It's extremely safe. Express Mail is also very safe since it is tracked every step of the way like Registered Mail and it processed so fast that it doesn't have a lot of time to sit around in one place to get stolen.

 

No matter how safe something may seem or actually be, I think it is still too risky. It doesn't take but one package to cause a significant financial burden.

 

Then how do you ship something like this?

[coinman_23885]

"Registered Mail items can be insured for up to $25,000 at your Post Office."

 

I don't think you can insure something that valuable through the mail. This quote is from the USPS website. I thought the maximum was $100k but still, why would anyone send it through the USPS who won't insure it's full value.

 

Because Registered Mail inside the US is one of the most safest and cost effective ways to ship something. Yes, they will only insure up to $25,000, but you can easily get private insurance to cover shipments above this. FYI, if you want the USPS to pay out the $25K and the item is worth more, you have to pay the handling fee for the actual full value.

 

I've shipped $100K+ packages with Registered Mail without any insurance. It's extremely safe. Express Mail is also very safe since it is tracked every step of the way like Registered Mail and it processed so fast that it doesn't have a lot of time to sit around in one place to get stolen.

 

No matter how safe something may seem or actually be, I think it is still too risky. It doesn't take but one package to cause a significant financial burden.

 

Then how do you ship something like this?

 

I said that I thought it was risky to ship the coin without insurance. You could always privately insure the package, or as was pointed out by one of the other posts, send it by armored car.

[physics-fan3.14]

Then how do you ship something like this?

 

There comes a point where picking something up in person might be a good idea. Or have it hand delivered by courier.

[cpm9ball]

The advantage of registed mail is that someone has to sign for it every time it changes hands. The last person that signed for it will hopefully be fired if it just disappeared and there is no evidence of the storage safe being broken into.

 

I've watched numerous times at the PO when I go to pick up a registered package, and the "storage safe" at this branch is nothing more than a cabinet that is ALWAYS unlocked so anyone behind the counter can remove a package. Perhaps there are many others that are this lax with their security.

 

Chris

 

I understand what you are saying but as long as there is a signature chain of custody for registered mail, there will always be someone that can be held responsible.

 

You're missing my point......

 

Suppose Lazy Larry logs the package into the "storage locker", and it is left open. Then along comes Dumb Dora to replace Lazy Larry for his lunch break. A little later, Dumb Dora has to go potty, but she forgets to lock up the registered packages. Now, while she is in the bathroom, along comes Shifty Sam who happens to recognize that the package is from one of the grading services, and since no one is around, decides to take it.

 

Granted Larry and Dora should be severly reprimanded for their failure to follow protocol, but Sam gets away scott free.

 

Chris

[physics-fan3.14]

The advantage of registed mail is that someone has to sign for it every time it changes hands. The last person that signed for it will hopefully be fired if it just disappeared and there is no evidence of the storage safe being broken into.

 

I've watched numerous times at the PO when I go to pick up a registered package, and the "storage safe" at this branch is nothing more than a cabinet that is ALWAYS unlocked so anyone behind the counter can remove a package. Perhaps there are many others that are this lax with their security.

 

Chris

 

I understand what you are saying but as long as there is a signature chain of custody for registered mail, there will always be someone that can be held responsible.

 

You're missing my point......

 

Suppose Lazy Larry logs the package into the "storage locker", and it is left open. Then along comes Dumb Dora to replace Lazy Larry for his lunch break. A little later, Dumb Dora has to go potty, but she forgets to lock up the registered packages. Now, while she is in the bathroom, along comes Shifty Sam who happens to recognize that the package is from one of the grading services, and since no one is around, decides to take it.

 

Granted Larry and Dora should be severly reprimanded for their failure to follow protocol, but Sam gets away scott free.

 

Chris

 

Larry and Dora should get fired. Sam should get fired and have his hands chopped off. Seems simple enough to me.

[Conder101]

As mentioned Registered is only insurable up to $25K, but they require you to declare the full value, and will charge for insurance up to that value ($1 per $1000 for values over $25K) So registered fees for this coin would have been over $375. If You ask the post office why they charge insurance on amounts greater than they will reimburse, their answer is that the extra insurance money goes to providing extra security for those packages. So much for the extra security idea.

 

Oh and if the Registered package is going out of the country, the maximum insurance reimbursement is $49.

[Mr.Mcknowitall]

"Registered Mail items can be insured for up to $25,000 at your Post Office."

 

I don't think you can insure something that valuable through the mail. This quote is from the USPS website. I thought the maximum was $100k but still, why would anyone send it through the USPS who won't insure it's full value.

 

Because Registered Mail inside the US is one of the most safest and cost effective ways to ship something. Yes, they will only insure up to $25,000, but you can easily get private insurance to cover shipments above this. FYI, if you want the USPS to pay out the $25K and the item is worth more, you have to pay the handling fee for the actual full value.

 

I've shipped $100K+ packages with Registered Mail without any insurance. It's extremely safe. Express Mail is also very safe since it is tracked every step of the way like Registered Mail and it processed so fast that it doesn't have a lot of time to sit around in one place to get stolen.

 

No matter how safe something may seem or actually be, I think it is still too risky. It doesn't take but one package to cause a significant financial burden.

 

Then how do you ship something like this?

 

I said that I thought it was risky to ship the coin without insurance. You could always privately insure the package, or as was pointed out by one of the other posts, send it by armored car.

 

Many private insurance companies will not insure at the risk level under discussion, and depending on the States involved (to and from) private insurance may not be available at all.

 

Respectfully,

John Curlis

[Mr.Mcknowitall]

It falls onto the corporate insurance of the auction house. I found this out, since I had wondered the same thing. You can only insure EXPRESS MAIL up to 5-6K, I believe. Not sure about REGISTERED but I thought it was less.

 

 

It may or may not default to the corporate liability policy, depending on the State, the deductible, and the receiver's own liability policy (ncluding homeowners policy), and a legal finding of fact.

 

No insurance company is willing to simply pay upon receipt of a Claim this large, regardless of the USPS liability. Federal law could come into play if USPS is involved, and could come into play if the claim is a State to State transaction.

 

Insurance isn't always the best method of recovery when the USPS is involved.

 

It may be that federal law trumps.

 

Respectfully,

John Curlis

[Guest Grails]

Then how do you ship something like this?

 

If I've sold something in the neighborhood of 400K+ I would spend an additional 1K or less on a round-trip flight and hand deliver the coin.

[MarkFeld]

Then how do you ship something like this?

 

If I've sold something in the neighborhood of 400K+ I would spend an additional 1K or less on a round-trip flight and hand deliver the coin.

 

What if it were $100,000 or $50,000, instead, where would you draw the line?

[Mr.Mcknowitall]

Then how do you ship something like this?

 

If I've sold something in the neighborhood of 400K+ I would spend an additional 1K or less on a round-trip flight and hand deliver the coin.

 

What if it were $100,000 or $50,000, instead, where would you draw the line?

 

 

Darn it- Logic again!

 

I'm calling my Lawyer, and I mean it this time.....

 

Respectfully,

John Curlis

[Guest Grails]

It would depend on the situation. Am I a private seller and this is a one-time deal? Am I a business moving high value single coins weekly? For this particular issue with a 400K coin, I would hand deliver.

[physics-fan3.14]

Then how do you ship something like this?

 

If I've sold something in the neighborhood of 400K+ I would spend an additional 1K or less on a round-trip flight and hand deliver the coin.

 

What if it were $100,000 or $50,000, instead, where would you draw the line?

 

You would have to compare the price of the round trip ticket and expenses with that of shipping and insuring it effectively. If the hand delivery is cheaper, I would go that route. Even for a $50k coin, it may be worth it.

 

Its the same question as where do you draw the line for a value for slabbing. At $30, the coin isn't worth the 100% tax. But at $300, is it then worth a 10% tax? Same question - at $100k is it worth the 1% tax for hand delivery?

[MarkFeld]

Then how do you ship something like this?

 

If I've sold something in the neighborhood of 400K+ I would spend an additional 1K or less on a round-trip flight and hand deliver the coin.

 

What if it were $100,000 or $50,000, instead, where would you draw the line?

 

You would have to compare the price of the round trip ticket and expenses with that of shipping and insuring it effectively. If the hand delivery is cheaper, I would go that route. Even for a $50k coin, it may be worth it.

 

Its the same question as where do you draw the line for a value for slabbing. At $30, the coin isn't worth the 100% tax. But at $300, is it then worth a 10% tax? Same question - at $100k is it worth the 1% tax for hand delivery?

 

The slabbing analogy doesn't really work. Because, having the coin slabbed doesn't take nearly the time that flying, round trip does. I's not only about the cost in terms of money. It's also about the cost of time.

[TheCoinGeezer]

The advantage of registed mail is that someone has to sign for it every time it changes hands. The last person that signed for it will hopefully be fired if it just disappeared and there is no evidence of the storage safe being broken into.

 

I've watched numerous times at the PO when I go to pick up a registered package, and the "storage safe" at this branch is nothing more than a cabinet that is ALWAYS unlocked so anyone behind the counter can remove a package. Perhaps there are many others that are this lax with their security.

 

Chris

I live in a very small town and the so-called "secure" RM storage safe is also an unlocked cabinet in the Postmaster's office - which is clearly visible from the counter area.

I have never had a RM package get lost but, then again, I never had a coin worth almost $400,000.00!