Mastro Auctions may no longer be in business, but the fallout continues over the company’s business matters including a brand new legal dispute with the head of a grading company over buying and selling cards.
Mastro Auctions, which faded–at least in name–from the hobby scene earlier this year, has failed to pay an unknown number of consignors from the company’s final sales last year.
Mastro has filed a suit against Sportscard Guaranty president Dave Forman, seeking $400,000 the company claims it’s owed for cards which were sold on his behalf. According to Doug Allen, former Mastro president who is now heading up Legendary Auctions, it’s what’s holding up those long overdue payments. However, the amount is in dispute by Forman and his vintage sports card-collecting attorney Jeff Lichtman who claim credit wasn’t given for some cards that were sold by Mastro on Forman’s behalf.
It’s the second time in nine months Mastro has filed suit over auction lots that were bid well into six figures but were left unpaid. Last October, when the company was still actively running auctions, a complaint was filed against William Fisher of Virginia, after he purchased nearly $416,000 worth of vintage baseball cards in Mastro’s April 2007 auction and left an unpaid balance of $117,923. Mastro offered a low-interest payment plan scheduled to begin in June of 2008 but Fisher failed to comply and apparently declared bankruptcy several months later. The case was dismissed on February 26.
It’s clear from a story in the New York Daily News that the once-friendly relationship between the two well-known hobby entities has soured, with unpaid consignors now caught in the middle of whatever financial issues are plaguing the dissolved auction house–and its former executives who have tried to start anew with some of Mastro’s assets.