Report: Subpoenas Sent to Dealers with Ties to Auction House

A federal grand jury has sent subpoenas to memorabilia dealers as part of an ongoing investigation into fraud in the industry.

legal scalesThe New York Daily News reported in Wednesday night that federal prosecutors are trying to determine if  records show New York-based Grey Flannel Auctions may have “inflated the historical significance and monetary value of jerseys they obtained from the dealers”.

The newspaper cited sources inside the industry.

Four dealers began serving prison time earlier this year in connection with a long-running case that involved the sale of jerseys, some of which wound up being sold to trading card companies.  It isn’t known if any of those cases are related to the current subpoenas referenced by the Daily News.

The FBI’s far-ranging and long-running probe into the business practices of some within the industry has also resulted in multiple indictments, including executives of the former Mastro Auctions.