Breaking News

By Peter J. Nash

March 13, 2015

(Scroll to Bottom for Update)

In our last report we detailed several issues that sources said would surface in the RR Class Action Lawsuit related to allegations of shill-bidding and fraud and the reported suicide of RR’s CFO and bookkeeper Karen “Kay” Burris. Late Thursday the class action website posted a 2008 affidavit written by Burris for her attorney that alleges a myriad of criminal activity that occurred at the New Hampshire auction house and shows that the former RR employee feared for her safety after experiencing “veiled threats” from her boss (and RR owner) Bob Eaton. Just two weeks after signing the 12-page affidavit making the serious allegations against Eaton and his company Burris was found dead in her home in what the current Amherst Chief of Police described to Hauls of Shame as a “self-inflicted gun-shot wound.”

Sources indicate that Plaintiff Michael Johnson and his attorneys posted the affidavit on the lawsuit website after it was officially submitted as evidence in the Santa Barbara, California, court house serving as the venue for the litigation.  Before the detailed affidavit was posted on the website, Hauls of Shame contacted the Amherst Police Department to confirm details of Burris’ death and to ask whether any statement written by her alleging wrongdoing by RR Auctions was ever entered as evidence in the case.  Chief of Police Mark Reams told us he had never seen any such statement and that evidence in the case presented by RR after the company fired her showed that “she embezzled money from the company.” Chief Reams also stated that Burris’ husband settled a civil case with RR by paying back funds claimed by the auction house. Reams was the officer called to the Burris household and found the ex-RR bookkeeper dead and the victim of what he described as a “self-inflicted gunshot wound to the head.”  Reams also confirmed that he did not have any autopsy report in the Burris case file and was not aware of any claims that Burris feared for her life before she was found dead. In 2012, Reams replaced former Police Chief, Peter Lyon,  who was his superior at the time of Burris’ death.

Karen Burris signed an affidavit just weeks before her death stating that she feared for her own safety and the safety of her family as a result of divulging information detailing alleged fraud and shill-bidding at RR Auctions.

The 2008 Burris affidavit posted on the class action website, however, appears to shed some more light on her relationship with RR and Eaton and shows that Burris did, in fact, fear for the safety of herself and her family. Burris also stated that her lawyer John Kacavas was going to “vigorously” defend her against RR’s claims of “financial improprieties.”

We followed up with Chief Reams and sent him a copy of the Burris affidavit for comment and he responded, “I am not in a position to review the affidavit, but can say that the alleged embezzlement was reported to our agency on  3/6/2008 at which point we initiated an investigation.  Mrs. Burris died less than one month later on 4/2/2008 in the midst of that investigation.” Reams also confirmed that Burris died  ”prior to the issuance of an arrest warrant.”

The 12-page affidavit prepared and signed by Karen Burris (left) was posted on the RR Class Action Lawsuit website on Thursday. Amherst Police Chief Mark Reams (right) says the police had no knowledge of Burris' statement at the time of her death and is currently "not in a position to review" the affidavit.

At the beginning of the document she gives an overview of her career at the auction house and the scope of the illegal activities she alleges:

“I believe that for the past five-plus years I have been working as a key employee of a privately-held company that systematically and knowingly defrauded certain buyers and sellers via its international auctions of important documents, important autographs and historical ephemera.  I also believe that R&R and its principals have organized a group (of) industry insiders and associates that regularly colluded via phone, email, the U. S. Postal Service, and private couriers to regularly fix bidding in its monthly international auctions to affect the outcomes in favor of certain buyers at times; and certain sellers at other times.”

Burris continues her narrative and describes how she worked for the company for close to six years and rose from the position of office manager to CFO and bookkeeper after receiving training from Bob Eaton’s mother, Janet Eaton, who held both of those positions before she left work after developing cancer. Burris noted her work with Eaton, Bobby Livingston, Bill White and Elizabeth Otto and also revealed that Otto had “intimate knowledge of several years of R&R’s and Bob Eaton’s chicanery with allowing items into auction knowing their respective authenticity was either questionable, or many times knowingly fake.”

The Burris’ affidavit reveals that the CFO became part of the Eaton family “inner circle” and assumed a myriad of responsibilities which put her in a position to witness what she alleges are auction house improprieties:

“During the course of my employment with R&R I was provided almost daily briefings which included intimate details of illegal and dubious practices designed to defraud R&R clients (consignors) and the general public (bidders and successful buyers).  On numerous occasions and on behalf of the family, I was asked to solve problems on a case by case basis, ranging from: Inquiries of claimed theft and fraud from former and current bidders/clients; from the US Justice Department regarding several instances where items appearing in R&R’s auctions were deemed stolen from the US National Archives; to members of the U.S. Congress and other luminaries claiming the same with their respective personal items either bought or sold via R&R; to numerous attorneys for their respective clients whereby “official notice” was demanded claiming ownership of various documents in R&R’s possession…..”

The Burris affidavit alleges that PSA/DNA authenticator John Reznikoff engaged in shill-bidding on his own consignments and that his monthly proceeds from RR auction sales ranged from the "$1,000's to $100,000."

Burris’ affidavit gives the most intimate details in relation to what she describes as rampant illegal shill-bidding at the auction house which she claims involved Bob Eaton and PSA authenticator and RR consultant John Reznikoff.  In regard to Reznikoff Burris stated:

“A major consignor (to) R&R is allowed to bid on his own items to move up bids to the point that he is willing to sell the item. A special procedure was designed by Bob Eaton to permit collusion on prices, bid rigging; and profits for items placed into R&R auctions by Reznikoff.  Reznikoff’s bidder number is 204.”

Burris goes on to describe further how Eaton and John Reznikoff engaged in shill bidding activity similar to the actions that took down auction kingpin Bill Mastro and Mastro Auctions:

“In any given auction, if Reznikoff “wins” his own item in a particular auction because he or Eaton could not max-out the bidding on that item with an unknowing bidder (or bidders), it is processed internally by Bill White differently than all other winning bids are processed- there is no sales invoice generated for him and the item shows as unsold on the “after auction profit list.” This system was designed by Bob Eaton, in direct collaboration with Reznikoff , so that Reznikoff was guaranteed a profit to his personal liking on any particular item; and a “no sale-no commission” policy so that he would continue to supply a higher quality (supposedly) number of items when R&R couldn’t get or didn’t have enough in any given auction. I know of numerous instances of this occurring over the past five years. Reznikoff consigns to almost every auction and has usually 10 or more items in each. Monthly consignor checks to Reznikoff range in value from $100’s to $100,000 each month.  He bids on his own items with the full knowledge and consent of Bob Eaton and Carla Eaton.”

Burris also revealed her intimate knowledge of the bidding process and the RR computer system:

“To get the R&R bid logs one needs an administrative password- log-in to the website using that password and then you can click on any item, see the current high bidder, the maximum that they have on an item and there is a button you can use to see the bid log.  It gives the name, number and amount of the bid as well as the time it was placed. Under the administrative password there is also a report called “auction totals.” When selected this generates a complete report of the current sales totals for the auction in process. It was designed as part of the web bidding process and implemented by Steve Long. Steve Long was told that when designing the report to ensure that the total omitted any high bids by the house auction bidder 0.  These are the reserve bids. However, the totals on the administrative report generated off the website are subsequently not correct as they include bids from those consignors who are bidding on their own items on either their own bidder number of the bidder number given to them specifically to bid on their own items. The true auction sales report is generated in the company’s internal system after the auction by Bill White- after he has taken out the fictitious bids.”

Burris alleges that Heritage CEO Brian Halperin (left) was shill-bid by Eaton and RR on a Charles Schulz item (2nd from left) that sold for close to $40,000.

In one passage Burris details how Heritage Auctions executive Brian Halperin was shill-bid on a Charles Schulz autographed item:

“Some consignors have been given separate bidder numbers specifically so that they can use those to bid on their own items…Joe Long, uses an account set up in the name “Gerry Long”.  A “Gerry Long” bid on “Joe Long” items and to my knowledge has never bid on anyone else’s items. In this February 2008 auction Gerry Long bid on the Charles Schulz item, item 594 catalog 330 and the eventual sales price was $38,569.09 (with bidder’s premium) “Joe Long” was the actual consignor of this Schulz item.  This item was ultimately purchased by the CEO of Heritage Auctions, Mr. Brian Halperin, so much so that an avid R&R bidder, Mrs Charles Schulz herself, deemed the final price too high for the value of this particular Schulz item.”

In another passage Burris described in great detail how another RR client named Simone Peterson was defrauded by Eaton:

“When I first worked there, bidder 5461 was used to bid against maximum bids. I noticed it because I always took the bids placed by a regular client named Simone Peterson (NY) bidder 6132.  Simone is an insisting collector on items that start out at $100. I noticed that many times she was being bid against by bidder 5461 who never won the item but always took her to one or two bids below her maximum. In this way, she paid huge ridiculous amounts for items because Eaton knew what she would be willing to pay for any given item because of the maximum bids she already placed on the item that he could see on his computer screen. He knowingly and amusedly took advantage of her “addiction” for especially desired items—almost as a sport. At some point I checked on who the “counter” bidder was in these bidding wars with my “client” Simone and realized that it was not an actual person or persons, but rather an account kept by R&R to bid in its own auctions.  At the time bidder 5461 had a name: O. Wright from Kitty Hawk.”

Burris claims that RR sold a large number of fake items alleged to have been signed by famous artists like Pissarro (left). According to Burris, many fake Pissarro prints were consigned to RR by attorney Danny Brams (right).

Burris’ affidavit also deals with issues of authenticity and alleges that RR and Eaton at times knowingly sold non-genuine autographed items including an Elvis Presley signed guitar, a Beatles album and a large group of material consigned by attorney Danny Brams from Florida:

“R&R has sold numerous (more than 100) items purportedly signed by Chagall, Miro, Picasso and Dali. Most of these were consigned by Dan Brams dba as Paper Treasures. They came to my attention originally when I fielded questions about them from bidders concerned about their authenticity. A number of these were returned to R&R when subsequent review by art experts confirmed their non-authenticity. Bob Eaton and I had a conversation about not taking these items anymore and while he agreed that they were problems with these items, that Dan Brams had an explanation for them so we would continue to list them. Among these items, as an example, R&R sold a Pissaro Item 377, Catalog 269, selling price $5,850, which was recently returned by the purchaser after it had been examined by the Pissaro Institute and determined to be non-authentic. R&R has sold 100s of these prints/book photos and has issued refunds on all that have been returned. However, there are still dozens of these in the hands of R&R winning bidders and the potential loss for the continued refunds would be in the $100,000’s.”

Sources indicate that several FBI agents have received copies of the Burris’ statement and according to one hobbyist familiar with the RR lawsuit the FBI has shown an interest in the case and in the recent news that former Mastro Auctions IT director William Boehm also worked for RR.  Boehm, who plead guilty to one count of lying to FBI agents after destroying Mastro bidding records, was scheduled to be sentenced in Chicago Federal Court earlier this month but sources say sentencing has been postponed until at least June.

Here is the entire Karen Burris Affidavit.

UPDATE (Sat. March 14, 2015): Johnson Motion For Class Certification Denied But Press Release Reveals New Action Against RR Related To Shill-Bidding

In Santa Barbara Superior Court yesterday,  Judge Donna Geck denied a motion for the certification of Michael Johnson’s proposed class action on behalf of California consumers who purchased bogus items from R&R Auction in New Hampshire.  Last night, the RR Auction Lawsuit website posted a press release in response to the decision which stated:

“The Court did not rule on the merits of Mr. Johnson’s claims, but instead, determined that the case could not procedurally be tried as a class action because of individualized issues involving autographed items purchased by the members of the proposed class.  Essentially, the Court ruled that anyone that was sold forged items during 2008-2012 would have the ability to pursue their own individual claims against R&R.   In addition to the ability for others to now pursue their own cases against R&R Auction for the purchase of inauthentic items, the Burris evidence demonstrates that another class action or suit in State or Federal Courts may be filed against R&R for shill bidding.”

According to sources familiar with class action certifications the denial of the motion did not relate specifically to the sheer numbers of alleged victims in the class but the fact that RR customers had claims for different items with different sales prices and damage amounts.  The ruling opens the door for many individual suits against RR to be filed in the near future.  Johnson’s attorneys at Christman, Kelley & Clarke, say they will continue their litigation against RR for the sale of bogus autographed memorabilia and, according to the press release, will include new claims  ”recently discovered from a former R&R employee that R&R Auction engaged in a systematic scheme to defraud its customers by engaging in “shill bidding” through conspiring with others to bid on memorabilia it auctions on its website with the intent to artificially increase its price or desirability.” The basis for Johnson’s new claims is identified in the press release as being “a copy of a signed and notarized affidavit from Karen Burris, a former RR Auction employee who passed away shortly after executing the affidavit.  Ms. Burris’ sworn affidavit implicates R&R Auction in a variety of illegal activities, including shill bidding and the knowing sale of forged memorabilia to its customers.”

The press release also indicates that Mr. Johnson’s attorney will “amend his complaint to assert these additional violations of consumer protection laws.”  Those laws prohibit the sale of bogus autographed memorabilia, and provide for the recovery of damages and penalties which could equal 10 times actual damages.  Johnson’s attorneys state that based upon his “estimated actual damages of $130,000″ Johnson will seek “a civil penalty of at least $1.3 million.”  In the press release Matthew Clarke of Christman Kelley & Clarke said, “This is another step in the right direction of ultimately making Mr. Johnson whole and holding R&R Auction accountable for its fraudulent and deceptive business practices.”

RR Auction did not publish a press release on the company website but Steve Cyrkin of Autograph Magazine Live published a post claiming that he received a press release from RR which stated:

“Lawyers for Michael Johnson, the son of an oil industry tycoon, effectively admitted defeat today in Santa Barbara County Superior Court after Judge Donna Geck issued a tentative ruling denying Johnson’s motion for class action certification in a lawsuit filed in October 2012 in which Johnson alleged that $84,000 in autographed items he’d purchased through R&R were later found to be inauthentic.”

Cyrkin’s post of the RR release also stated:

“In what R&R’s attorney’s predict will be a fatal blow to Johnson’s suit, now on its second set of lawyers, Judge Geck issued a six-page tentative ruling Wednesday denying class action status to the case “Because of the findings that the class is not ascertainable, the class is not numerous and individual issues predominate over common issues.”

Hauls of Shame will continue post any new information about the case as it becomes available.

(Editor’s Note: Amherst Police Chief Mark Reams states that he had no knowledge of details related to the 2008 settlement between the Burris family, Karen Burris’ estate and RR Auction.  Reams called Hauls of Shame to clarify what he said and noted that the only details he was aware of were published in New Hampshire newspapers.)

By Peter J. Nash

March 4, 2015

It’s not a baseball memorabilia dispute but every baseball collector will be familiar with the names of the characters getting dragged into the RR Auction class action lawsuit. The litigation, initiated by collector Michael Johnson, has been brewing for over three years in Santa Barbara Superior Court and the lawsuit is on track to receive California class certification in the next few weeks. Take a look at your PSA/DNA LOA’s and you’ll see the facsimile signatures of the so-called experts who have been dodging subpoenas in the case for months now including PSA President Joe Orlando; Pawn Stars regular Steve Grad, and John Reznikoff. Even the former kingpin of the memorabilia and auction industry, Bill Mastro, is on the list to be deposed as he awaits sentencing after pleading guilty to mail fraud last year in a Chicago Federal Court.

Orlando and Grad are still currently evading service of subpoenas while the deposition of PSA authenticator Bob Eaton has been up on a video link at the RR Auction lawsuit website since January. Grad’s video-taped deposition is highly anticipated in the hobby considering he fabricated his professional bio and was exposed lying under oath about his education in another litigation. The deposition of Eaton, who is also the owner of RR Auctions and claims to do $25 million annually in revenue, is a must-see for anyone who buys, sells or collects autographs. One collector who watched the video told us, “It’s hard to believe that a PSA/DNA LOA with his name on it could be worth the paper it’s written on after watching that video.”

Eaton’s name and facsimile signature were recently reported as having been removed from PSA/DNA LOA’s and sources have confirmed that recently issued PSA certifications make no mention of Eaton. In his deposition Eaton said he was no longer affiliated with PSA and that his company no longer offers a “lifetime guarantee” or even letters of authenticity on items they sell. Eaton couldn’t recall who prints his monthly auction catalogs and also couldn’t remember filing lawsuits within the hobby and against former employees.

Bill Mastro was instrumental in bolstering the careers of authenticators (l to r) Steve Grad, John Reznikoff and Roger Epperson. Epperson was recently exposed for authenticating a large group of Michael Jackson forgeries some of which ended up in RR auction sales. Many of the forgeries were sourced to actor Corey Feldman but the actor denied ever owning them and claimed a photo accompanying the forgeries had his head photo-shopped onto the image (right).

Eaton also said he had no knowledge of his “entertainment expert” Roger Epperson authenticating or consigning Michael Jackson forgeries to his auction house despite evidence suggesting that he did. Eaton’s consignment director, Elizabeth Otto, however, admitted under oath that Epperson and PSA experts Grad, Reznikoff and Eaton consign their own authenticated materials to the New Hampshire auction house. Otto also stated that the autograph submission protocol at RR and PSA/DNA is “anonymous” and that experts do not know the identity of consignors, but sources indicate that internal RR documents contradict Otto’s testimony.

Otto also said that Bob Eaton was not on the “PSA payroll” or compensated by PSA for having his name and signature appear on PSA LOAs but she could not directly answer why Eaton would work for PSA without compensation. In her deposition Otto also claimed that William Boehm, another associate of Bill Mastro who plead guilty and is also awaiting sentencing in the Mastro case, had acted as the webmaster and outside IT consultant for the auction website. RR’s Vice President Bobby Livingston went a step further in his deposition and said that Boehm was a freelancer who worked for RR and “oversees the function of the auction software.”  Boehm was working for RR after he was indicted for lying to FBI agents about destroying auction bidding records and company computers for Bill Mastro.

As one collector told us after watching all of the RR video testimony, “This class action lawsuit really shows the behind the scenes collusion between the auction houses and the third-party authenticators.”  Another veteran collector said, “This very well could be the beginning of the end for PSA/DNA.” But if that’s the case, what is the RR Auction class action really all about and how is PSA/DNA involved in the litigation? And why are the lawyers who represent PSA and its parent company, the publicly held corporation Collectors Universe (CLCT), also representing Bob Eaton and RR Auctions?

The RR Class Action lawsuit website details the items purchased by Michael Johnson which were rejected by PSA/DNA including alleged autographs of The Eagles, Eric Clapton and the Moody Blues.

The original underlying claims made in the lawsuit relate to collector Michael Johnson’s RR auction purchases of over $100,000 of autographed Rock n’ Roll memorabilia including album covers, guitars and drum heads allegedly signed by the likes of Vanilla Fudge, Pink Floyd, The Eagles, Paul McCartney, Cream, Eric Clapton, the Moody Blues and the Rolling Stones. According to the complaint and the lawsuit website, Johnson had all of the material sent to PSA/DNA for letters of authenticity to be issued, but all of the items were deemed non-genuine by PSA and expert Steve Grad.  After he was notified that the items he won from RR were failed, Johnson complained to Eaton and RR vice president Bobby Livingston and subsequent email exchanges between Livingston and his boss show that Eaton called Johnson a “nut case.” The exchanges also reveal that RR had discussions with PSA which resulted in another email exchange which referred to Johnson’s items and stated: “PSA-Now They Are Real.”

A portion of an email between RR owner Bob Eaton and VP Bobby Livingston reveals that PSA/DNA reversed its opinions on the items they failed. The RR email states, "PSA-Now they are real."

The email exchanges were turned over to Johnson’s attorneys in discovery and they reveal the inner workings of the auction house’s authentication process and the incestuous relationship between RR and PSA/DNA, the company that auction house owner Bob Eaton has served as an expert for and is listed on hundreds of thousands of letters of authenticity. RR didn’t immediately refund Johnson’s money and in doing so, RR and Eaton opened up the door for the filing of the class action lawsuit amid claims that many other California residents who bid on items in RR’s auction sales were also the victims of fraud and deception that stemmed from the authentication processes utilized and manipulated by RR and PSA/DNA. A closer examination of the email threads turned over by RR also reveals that the documents received in discovery may have been doctored or fraudulently altered to delete information which included direct email exchanges between RR and PSA/DNA including its President Joe Orlando and senior authenticator Steve Grad.  Adding to the controversy and conflicts of interest is the fact that RR and PSA/DNA are represented by the same attorneys, Keith Attlesey and Suzanne Storm of the California lawfirm Attlesey & Storm.

While Bob Eaton's name and signature have been removed from PSA/DNA LOAs, he still appears as an expert on Jimmy Spence's (inset) website for his company JSA.

While Eaton still appears as an expert on Jimmy Spence’s website for the authentication company JSA, his name and signature appear to have been removed from the PSA/DNA LOAs after he was noticed for his deposition back in October. The last LOA we could find with his facsimile signature was issued in November of 2014.  Eaton’s name had appeared on PSA/DNA LOA’s under the Collectors Universe umbrella for over a decade since he joined PSA in late 2003.  Prior to 2004, the PSA/DNA letters only included the names and signatures of Jimmy Spence and Steve Grad but by 2005 Spence had left PSA and the new LOA’s issued by the company included the names of Grad, Reznikoff, Zach Rullo, Roger Epperson and Eaton as the members of the “PSA Authentication Team.”

It is interesting to note that Eaton and the PSA team authenticated scores of Babe Ruth forgeries that were sold by Mastro Auctions and MastroNet during that same time period and it is no surprise that Bill Mastro, the godfather of the third-party authentication system, is listed on the class action website for an upcoming deposition.  It was Mastro who was instrumental in installing Jimmy Spence and ex-Mastro employee Steve Grad as the lead authenticators for PSA/DNA and it was Mastro and his MastroNet partner Rob Lifson who devised language and regulations in the MastroNet catalogs between 2000 and 2003 which insulated the auction house from liability for selling forgeries and successfully set up a system to market and distribute forgeries throughout the hobby with little recourse for collectors.

Bob Eaton was included as a PSA/DNA expert on all LOAs issued by Collectors Universe from 2005 until 2014. After Eaton was noticed for his deposition in the class action lawsuit, his name stopped appearing on PSA/DNA LOA's as evidenced on a January 2015 LOA (right). Eaton's facsimile signature appears on a 2005 PSA/DNA LOA certifying a Babe Ruth forgery as a genuine signature (right) .

There has been little in-depth reporting about the Johnson case and the “hobby press” hasn’t really acknowledged the legal wranglings.  Most of the chatter about the case has surfaced on autograph forums and long-time PSA supporter, Steve Cyrkin, made the most notable public comments about the case recently before he was added to the class action website’s list of individuals scheduled to be deposed. Cyrkin addressed the lawsuit and said:

“If you’re perplexed why this lawsuit was filed, since R&R offered to refund Johnson’s money and all grading and shipping fees, this may make it easier to understand:  There’s a California law covering signed sports memorabilia, Calif. Civil Code 1739.7, that specifies 10-times losses plus legal fees and costs for selling fake signed memorabilia. I hear it has been successfully used in cases involving non-sports signed memorabilia as well. I think that Johnson is trying to use this law to try shakedown R&R. R&R offered Johnson his money back and more according to the deposition testimony, so I can’t imagine any judge or jury awarding a civil penalty. I think that at best all Johnson will get is what’s specified under R&R’s terms and conditions in force when he bought the items.”

Cyrkin even published the California statute he was referring to which states:

“(g) Any consumer injured by the failure of a dealer to provide a certificate of authenticity containing the information required by this section, or by a dealer’s furnishing of a certificate of authenticity that is false, shall be entitled to recover, in addition to actual damages, a civil penalty in an amount equal to 10 times actual damages, plus court costs, reasonable attorney’s fees, interest, and expert witness fees, if applicable, incurred by the consumer in the action. The court, in its discretion, may award additional damages based on the egregiousness of the dealer’s conduct. The remedy specified in this section is in addition to, and not in lieu of, any other remedy that may be provided by law.”

Cyrkin made his public statements just before he lost three motions in California Superior Court as a defendant in a defamation suit filed against him by autograph dealer Todd Mueller of Colorado Springs, Colorado.  Mueller’s suit alleges malicious defamation and business interference and sources familiar with that litigation allege that documents obtained in discovery by Mueller’s attorneys (the same firm representing Johnson) evidence collusion between PSA/DNA and auction houses and also suggest that Cyrkin, Orlando, Grad, Epperson, Reznikoff and Jimmy Spence of JSA worked in concert to destroy Mueller’s reputation and his business to further their position as a monopoly in the authentication industry.

Cyrkin, who is a co-founder of PSA and currently employed by the company in its coin division declined comment about his public statements regarding Johnson’s alleged “shakedown” of RR Auctions. Cyrkin is the moderator of the website Autograph Magazine Live and is known throughout the hobby as a notorious seller of forged items through his now defunct company Starbrite Autographs. Cyrkin has also claimed in court papers to have several mental disorders and he also has as a history of legal troubles including a $500,000 judgment entered against him by the Provident Life and Accident Insurance Co. for committing insurance fraud. Johnson and his attorney, Dugan Kelly, declined to comment or respond to Cyrkin’s allegations of a “shakedown” but did say there could be additional filings in the class action suit against RR later this week.

The depositions of Bob Eaton, Bobby Livingston, Bill White and Elizabeth Otto are currently on the RR lawsuit website (top row). On deck are (l to r) Steve Grad, Joe Orlando, John Reznikoff, Steve Cyrkin and Bill Mastro.

Hauls of Shame interviewed several parties familiar with the details of the RR class action and the Mueller litigation who disagree with Cyrkin’s commentary and, based upon those interviews, we’ve determined that there are multiple issues that could interest the FBI in relation to the RR Auctions and PSA/DNA:

1. Allegations of collusion between RR Auctions and PSA/DNA.

2. RR’s alleged sale of bogus autographs accompanied by RR and/or PSA/DNA LOA’s.

3. Allegations that RR Auctions’ office manager Karen “Kay” Burris may have been a murder victim contrary to reports that she committed suicide just weeks after RR filed police reports and a lawsuit against her alleging the embezzlement of $111,000. Sources say that Burris had first-hand knowledge of fraud and shill-bidding at RR and that Eaton and RR Auctions settled out of court with Burris’ family after her death.

4. Allegations of collusion and racketeering between PSA/DNA employees and major auction houses.

5. Questions about the professional qualifications of PSA/DNA authenticators and how its “so-called experts” could render opinions on the 400,000+ autographed items per year. In its 2014 Annual Report Collectors Universe states that PSA/DNA employs “6 autograph experts with an average of 25 years of experience in the autograph memorabilia market, as well as outside consultants that (they) use on a contract basis.”

Hauls of Shame has confirmed that at least two FBI agents have expressed interest in reviewing the RR class action lawsuit depositions as well as the upcoming depositions of PSA/DNA employees. Bob Eaton was asked in his deposition if he was currently being investigated by the FBI and he responded that he was unaware of any such investigation.  A Federal agent has also made it known to several hobbyists that the New York office of the FBI would like to hear from any collectors who feel they have been victimized by any third-party authentication company and said they can report their experiences by calling 718-286-7100. We requested interviews with Joe Orlando and Bob Eaton but neither executive responded to comment on the on-going litigation.

As far as the civil litigation is concerned, one major dealer with over thirty years in the autograph industry is skeptical that the RR class action could ever impact PSA/DNA or Collectors Universe in a significant way.  He told us, “I do not see depositions or a court case on the horizon, the parties (at PSA) that have refused service will continue to do so until they throw so much money at this that they will make it go away. Too much at stake to forfeit a monopoly, unfortunately that is the reality.”