A Story of Counterfeit PCGS Holders

dragon

If you've been in the coin hobby long enough, you may already know this story or have heard of it.

Anyway, back around 1989 or so, a very well known and regarded dealer (initials GF) decided that rather than to doctor up coins and try to get them certified by PCGS, it was simply easier to make your own PCGS holders and insert the coin of your choice withthe grade of your choice! Apparently, he was doing this for a while undetected and putting fake PCGS slabs out into the marketplace.

This was when PCGS was still using the 1st generation small holder and this individual did nearly a perfect job of counterfeiting the PCGS holders except for one very small detail that someone finally caught. It had to do with the lettering on the reverse of the PCGS label and the positioning of the serifs on the tips of the letters, his were "off" and this was the giveaway that the label was a fake. I'm not sure exactly how he was caught, but he WAS prosecuted and I believe he went to prison.

PCGS made this incedent public and offered to buyback or replace any coins that were found to be in counterfeit holders and make people whole.

Dragon

byergo

Who's GF?

gmarguli

Too bad PCGS didn't have the guts to step forward and compensate the submitters that submitted coins to PCGS thru a PCGS Authorized Dealer, but the dealer really STOLE coins from their submitters instead of submitting them to PCGS.

truthteller

To add a bit to the story. He got caught by using the serial numbers of already existing coins, such as a serial number for a $10 lib when the counterfeit was a $20 saint. So when a dealer punched up the serial number on the PCGS computer, it came up a different coin. If he had used the right serial numbers, he could have gotten away with the scheme. He was sentenced to 10 years in federal prison and I believe he served 8.5 years. He would buy actual slabs that were not sonically sealed on the underground market for up to $100 a set for the male/female with fake inserts. Heritage was a main force to his prosecution and aided the Feds by confiscated a major portion of the fakes and GF actually sued Heritage to try and get back his confiscated counterfeits. PCGS has since instituted a practice of microserializing the male/female slab inside and they must both have the same numbers before sonically sealing.

TRTH

gsaguy

GF not only bought and 'upgraded' certified coins, he bought plenty of raw coins as well.

I had set up at a show near the airport in Houston back in the late 80's and had put out a bunch of nice GSA CC dollars. Because I really didn't want to sell them, I put ridiculous prices on them. GF came through and bought literally every one I had.

Most of the other dealers just figured he had a really strong buyer backing him. It wasn't long after that that we learned he'd been arrested and charged.

Truthteller's account matches the story as I heard it.

GSAGUY

TomB

Aside from the serial number issues that were brought up, the key visual giveaway to his homemade slabs were that the "S" of PCGS was in the wrong type face.

jtryka

So let me get this straight, some guy counterfeits a PCGS slab, I buy it, and then they make me whole. But, if I submit a coin, it comes back in their slab with fingerprints, and then it's my fault and I'm out of luck. Yeah, that makes sense.

DesertLizard

If "GF" was caught and prosecuted and convicted why are some afraid to mention "GF" full name ?!!!

dragon

DesertLizard,

I wasn't afraid to mention his name, just wasn't sure if it was appropiate or not, that's all.

Dragon

braddick

Dragon- With it being public knowledge, trial and sentencing, it would be alright I think ethically- it's just up to you if you want to.
I remember the story, but I forgot the name of the actor.

This was right around the same time SilverTowne was having their legal difficulties.

coinguy1

DesertLizard,

The name of the guy is Gary Fernandez.

Pushkin

Coinguy1,

Thanks for the information. I don't understand all the secrecy about something that is a matter of public record? I'd like to know who to deal with and who not to.

coinguy1

Pushkin,

I think some posters were just being cautious and others simply didn't know or remember the name.

Mark

I knew that someone had counterfeited PCGS slabs and so I found this story (and name) interesting. But one point about this thread that I don't understand, namely, "Where it did come from?" Why bother to post the story without some asking about it? This question is NOT to say that I don't appreciate the information. I just wonder what brought about posting it...

Mark

braddick

The topper is these PCGS counterfeit slabs were so readily removed from the marketplace and PCGS was excellent at "making it right" that very few if any of these "slabs" are still out there.
the irony is they're collectible in their own right.

Endocrinologist

This guy must have had a rough time in prison.

"What are you in the slammer for?"

"Counterfeiting Slabs"