Overview
During
the 1990s, the FBI identified a major problem threatening
the entire sports and celebrity memorabilia market.
In the mid-1990's, the Chicago Division of the FBI
initiated a sports memorabilia fraud investigation
targeting a group of individuals who forged, fraudulently
authenticated, and distributed Chicago athletes' autographed
memorabilia (including Michael Jordan). The case resulted
in the conviction of fourteen individuals in five states
involved with forging and distributing forged memorabilia.
Information developed by the Chicago FBI's "Foul Ball" investigation
suggested that the problem might be national in scope.
While
it is impossible to definitively estimate the percentage
of forged memorabilia, most industry experts concede
that over half of the most sought-after athletes' and
celebrities' autographed memorabilia is forged. Industry
experts estimate that the autographed memorabilia market
in the United States is approximately $1 billion per
year. Cooperating subjects and memorabilia experts
estimate forged memorabilia comprises over $100 million
of the market each year.
In
1997, the FBI in San Diego utilized information from
Operation Foul Ball and other sources to institute
an undercover operation designed to infiltrate the
nationwide memorabilia fraud network. Together with
the U. S. Attorney's Office and the Internal Revenue
Service, an undercover scenario was devised in which
an Undercover Agent would pose as a distributor of
American memorabilia in Asia. This scenario enabled
the FBI to purchase evidence without causing the sale
of forged items to the public. It also made the criminals
more likely to openly discuss the counterfeit nature
of the memorabilia, because it was 'going overseas'
beyond the reach of U. S. law enforcement agencies.
To support this "cover story", the FBI established
the Nihon Trading Company in Oceanside, California.
The goal of this undercover operation was to infiltrate
the forged memorabilia market and obtain recorded statements
from those individuals who were identified as forgers,
authenticators, and distributors of fraudulent memorabilia.
The
key evidence in this investigation were recorded statements
which provided evidence of the individuals' involvement
in forging, fraudulently authenticating, and/or distributing
the materials. In Operation Bullpen, referred to as
Phase I, the San Diego Division of the FBI conducted
well over 1,000 consensually recorded audio and video
tapes. During the consensually recorded conversations,
numerous co-conspirators made incriminating statements
which illuminated the nature and common practices involved
with sports memorabilia fraud. For example, one of
the conspirators liked to joke to the Undercover Agent
how Mickey Mantle still has one arm out of the grave
signing autographs. Other conspirators were noting
how Wilt Chamberlin was still available for signing
weeks after his death.
On
April 11, 2000, Operation Bullpen Phase I culminated
with the charging of 26 individuals, who were all convicted.
During the last five years, Phase II expanded the investigation
from predominantly Southern California to a nationwide
investigation. During this phase, a multitude of undercover
scenarios were instituted to focus on celebrity forgeries
in addition to sports forgeries. In this phase, over
2000 consensual recordings were made. Conspirators
bragged how their forgeries were better than those
of other forgers that they knew. One conspirator claimed
if he went to trial, he would testify he actually becomes
Babe Ruth. He then joked he could also say he becomes
Jackie Robinson and then said he would turn Black (he
was Caucasian) for the jury. A total of 18 searches
were conducted in 12 states, resulting in 36 additional
convictions. All searches were executed after September
11, 2001.
Additionally,
although 13 forgery rings (compared to 5 in Phase I)
were dismantled, this was investigated with approximately
one fifth of the manpower. The tremendous increase
in the efficiency of the investigation was attained
from the assistance received from the industry and
the use of cooperating subjects/witnesses from Phase
I. Two counterfeiting card rings were also dismantled.
The card portion of the industry is relatively unencumbered
by fraud; these two rings are considered anomalies.
As
a result of the attention brought about by Operation
Bullpen, advances have been made within the sports
industry to combat forged signatures and the fraudulent
sales of items as 'game used'. Major League Baseball
(MLB) unveiled their own memorabilia authentication
program in conjunction with the culmination of Phase
I. Their program is similar to what companies such
as Upper Deck, Mounted Memories, Steiner Sports, TriStar,
and several others have in place. Essentially, each
piece of memorabilia is witnessed by a person who places
a uniquely numbered hologram on each item which is
tracked in a database. These methods have never been
pierced by the forgers.
The
adoption of witness authenticated programs by other
sports leagues would surely help to counteract fraud.
In the non-sports marketplace, these programs are almost
non-existent. Phase II concentrated on the celebrity
marketplace since it is significantly more inundated
with forgeries than the sports world. Essentially,
celebrity actors and actresses do not conduct paid
signings like athletes do. Obtaining a signed picture
or poster of a prominent Hollywood celebrity is through
chance meetings.
Phase
II was also an investigation in 'cyber space'. The
industry, as a whole, has moved in this direction where
individual collectors can now easily sell pieces. The
forgers unfortunately led the way, realizing the anonymity
that the Internet provided for dealing their forgeries.
Phase II convicted the largest seller in the world of
signed celebrity photos: Truly Unique Collectibles,
who mostly sold through their website. Phase II also
convicted numerous Internet auction site sellers, who
generated millions of dollars in sales.
The
subjects convicted in this investigation had all used
the story line that their celebrity signed pictures
and posters were obtained by 'runners'. Runners are
people who happen to catch a celebrity at an event
and obtain a signed picture there. Most of the convicted
subjects obtained one or two signatures in this manner
and then simply forged many more, claiming they were
from the meeting. All of the convicted subjects noted
that it was impossible to make a living as a runner.
The amount of time needed to get the couple of signatures
a person needs, does not generate an adequate income.
The overwhelming number of celebrity signed photographs
and posters being sold throughout the world are sold
under this pretense; this investigation would suggest
they are almost all forged.
Although
Operation Bullpen has highlighted the fraud problem
within this industry, additional education of the public
will help eliminate the crime. The industry can be
the key for counteracting this fraud with programs
such as MLB's. Almost all of the companies performing
witnessed/hologramed signings are for athletes. Hopefully,
these entities will participate in and demand these
authentication programs. Educating the public might
also create increased pressure from the consumers for
the development and expansion of authentication programs.
Phase
III of Operation Bullpen marks the sharing of this
forged sports equipment and memorabilia with the San
Diego community. From the inception of this investigation,
it was a goal to provide local children's charities
and crime victim agencies with these materials so that
they would ultimately be put to good, honest use.
