PWCC card trimming scandal

[kchan1111]

The parent of PCGS is currently embroiled in a card trimming scandal at their PSA card authentication and grading half of their business.

https://www.oregonlive.com/business/2019/06/lake-oswego-auctioneer-enmeshed-in-sports-card-scandal.html

PSA graded the PWCC cards.


You'd think it's fairly easy to detect someone has trimmed a bit off the edge?

[Mister T]

Yeah I don't know - this happens with old banknotes too doesn't it? Although banknotes would be guillotined in the same way during production - not sure how the sports cards are made.

[Basil]

Another link,very little detail,i guess for Legal concerns.


https://seekingalpha.com/article/4268721-collectors-universe-scandal-waiting-exposed

[kchan1111]

From their annual report:

"We offer a warranty covering the coins and trading cards that we authenticate and grade. Under the warranty, if any coin or trading card that was previously authenticated and graded by us is later submitted to us for re-grading and either (i) receives a lower grade upon that re-submittal or (ii) is determined not to have been authentic, we will offer to purchase the collectible, or, in the alternative, at the customer's option, pay the difference in value of the item at its original grade, as compared with its lower grade. However, this warranty is voided if the collectible, upon re-submittal to us, is not in the same tamper-evident holder in which it was placed at the time we last graded it, or there is evidence that the holder was tampered with."

As of 30/6/17, they had put aside $862,000 as warranty reserve and paid out $736,000 in warranty during the 12 months to 30/7/2018. The previous two years were $360,000 and $455,000. Bit of a jump last year.

[Mister T]

Geez, that seems like a lot of payouts, even in previous years.

[kchan1111]

Geez, that seems like a lot of payouts, even in previous years.

Well not really. In 2018, they graded 2,792,800 coins and 1,763,700 trading cards with an estimated value of $1,971 and $193 millions respectively. So a few hundred k's is nothing really.