The E-Sylum:  Volume 10, Number 11, March 18, 2007, Article 27

NINE-YEAR EBAY STAMP FRAUD CHRONICLED

Dick Johnson writes: "There is considerable coin fraud on eBay, but 
nothing, it appears, like the rampant stamp fraud that has appeared 
there for years. MSNBC has been conducting an in depth study of one 
case on this subject since its earliest broadcast in 2002. I don't know 
when the recent broadcast occurred but a print report went on the Internet 
a week ago (Feb 26, 2007). 

"The latest report states this is a nine-year illicit venture that has 
"seen thousands of altered postage stamps sold to unwitting collectors 
on eBay and other Internet auction sites." The mastermind behind this 
is known to law enforcement officials and leading stamp authorities. 
They even know where he lives (upstate New York Saratoga area) but he 
has never been charged! He is also well known to eBay, yet he still 
succeeds in getting his fraudulent product listed and sold. 

"EBay has suspended the seller's accounts eleven times, but he switches 
over to Yahoo for awhile, then returns to eBay under new credentials. He 
buys stamps in poor condition, alters them to a higher grade or a slightly 
more valuable variety, then puts them up for auction again. A typical case 
may be a stamp purchased for $60 later sells for $80. It is estimated he 
has sold tens of thousands of altered stamps, but his take may be in the 
millions.

"The low profit is said to stay under the radar "of what is prosecutable." 
The amounts are so small and the collectors who have been defrauded are 
widespread. It is difficult to make such a case stick authorities assert. 
Postal authorities, New York State Attorney General, local police, FBI, 
have all refused to prosecute. 

"The fault lies with eBay which accepts the listings in the first place. 
EBay has such a convoluted complaint registration system that it takes 
months for any significant action to take place. And when it does identify 
a fradulent seller eBay is weak keeping them from returning. I liked one 
statement by Rosalinda Baldwin, CEO of The Auction Guild, an Internet 
watchdog, who commented: 

"Given that eBay doesn't take every possible step to verify that people 
opening accounts are who they say they are, "Can someone keep registering 
under false IDs and false registration and get away with it? Oh, yeah, 
even the idiots can do that," she said. 

"The report is 6 1/2 pages in length, but most interesting: Full Story

"Further websites are on the same subject:

SCADS (Stamp Collectors Against Dodgy Sellers) lists the group as 
the "Saratoga Ring." 
alterations/schuylerac.htm#bmk25
Stamp Collectors Against Dodgy Sellers

SCADS Hall of Shame 
scads.org/shame/shame.htm "

  Wayne Homren, Editor

	coinbooks.org Web

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