Apr 13, 2018 | ICTA/NCBA, News
A Minnesota federal grand jury has returned a 6-count criminal indictment charging coinCourter Barry Ron Skog with five counts related to the sale of counterfeit coins and one count of mail fraud.
According to the indictment filed April 10 in U.S. District court, the 67-year-old Skog owned and operated a business called Burnsville Coin Company, through which he devised a scheme, from June 2012 through October 2015, to advertise and sell counterfeit coins by fraudulently representing that the coins were genuine and worth hundreds of dollars.
The indictment describes how through his business Skog posted advertisements in Numismatic News, a nationally circulated hobby publication.
“When potential buyers responded to the advertisements, the defendant often mailed them, via the U.S. Postal Service, lists of additional available coins for purchase,” the indictment states. It notes that when Skog communicated with victims he would often represent himself as “Ron Peterson” and claim to be an employee of the Burnsville Coin Company, when in fact there were no owners or employees of the company other than Skog.
In addition to operating the Burnsville Coin Company, the indictment also states that Skog sold numismatic coins at a display operated in an antique store in Stillwater, Minn.
The indictment cites three victims by initials and lists five counterfeit U.S. coins sold by Skog as separate counts in violation of Section 485 of Title 18 of the U.S. Code. The coins include:
- A counterfeit 1844 Seated Liberty dollar
- A counterfeit 1853 Seated Liberty dollar
- A counterfeit 1873 Seated Liberty half dollar
- A counterfeit 1885 Seated Liberty half dollar
- A counterfeit 1875 Seated Liberty silver 20-cent piece
Violation of Sec. 485 of Title 18 carries a fine or imprisonment of up to 15 years or both.
In total, Skog is believed to have fraudulently obtained more than $80,000 from his victims.
Upon conviction of any of the five counts, the indictment seeks forfeiture of property including “approximately 3,000 numismatic and current U.S. and foreign coinage and tokens, and approximate 78 bills of collectible paper money.”
The grand jury charges stem from an investigation conducted by the Minnesota Commerce Fraud Bureau and the Burnsville Police Department. Two members of the Industry Council for Tangible Assets Anti-Counterfeiting Task Force assisted with the investigation.
The case is being prosecuted by the U.S. Attorney’s Office.
Collectors Universe won a default judgment against Skog in April 2011 in which a federal court issued an order permanently enjoining Skog from manufacturing and importing counterfeit Professional Coin Grading Service holders. The order also enjoined him from selling any coin, real or counterfeit, in counterfeit PCGS holders. Collectors Universe is the parent firm of the PCGS.
The civil lawsuit was filed on Dec. 7, 2010, in the United States District Court, Central District of California, accusing Skog and his coin business of selling during the previous four years counterfeit rare coins not marked COPY and housed in counterfeit PCGS holders made to order from Chinese manufacturers.
The lawsuit alleged violations of the Hobby Protection Act, the Lanham Act, violation of RICO, common law fraud, conspiracy and violation of California’s unfair competition law. It cited an example of a North Carolina collector who purchased two Seated Liberty dollars dated 1851 and 1858 from Skog in April 2010 for $12,400. The coins and the PCGS holders in which they were encapsulated were determined to be counterfeit.
Mar 29, 2018 | Announcements, ICTA/NCBA
World Mint Work Group joining anti-counterfeiting effort
Greg Allen
ACTF Steering Committee members serve as leaders of more than a dozen Work Groups comprised of some 40 experts who volunteer their time and expertise to advance the mission of the task force, which includes mobilizing law enforcement to combat counterfeiting and providing training and education for law enforcement, the numismatic community, and the public about counterfeits of circulating, collector, and bullion coins as well as precious metals bars.
Allen is president and chief manager of Greg Allen Coin, LLC. He has been an active ICTA Board member since 2008 and has been an ACTF Steering Committee member since its inception in 2017, where he also chaired the Laws and Regulations Work Group. He also serves as secretary of the board of directors of the non-profit Anti-Counterfeiting Educational Foundation.
Allen succeeds Joe DeRosa of Loomis International, who served as the first chair of the ACTF Steering Committee. DeRosa will continue to serve as a member of the Transport/Storage Security Work Group.
Diehl also announced the establishment of the World Mints Work Group, a new group under ACTF’s umbrella that will bring much needed expertise to assist law enforcement in dealing with counterfeits of popular bullion coins and bars sold throughout the world.
The initial members of the World Mints Work Group include the Royal Canadian Mint, to be represented by Dave Norris; the Austrian Mint, to be represented by Andrea Lang; the Royal Australian Mint, to be represented by Mark Cartwright; and the Perth Mint, whose representative will be named later.
Other ACTF changes include three new appointees to work groups and the reorganization of two work groups.
Lee Anne Patterson and Robert Oberth will join the Research Work Group. Patterson represents Stealth Mark, a company engaged in developing anti-counterfeiting technology and mapping behavior patterns of those intent upon doing harm to the coin industry by devaluing the market with counterfeits. Oberth is founder of Coin Dealers Helping Coin Dealers Roundtable Group, currently comprised of more than 800 dealers.
Due to the differing needs of identified constituents, the Education Work Group and the Law Enforcement Liaison Work Groups are being reorganized into the Education-Law Enforcement Work Group and the Numismatic/Public Education Work Group.
Steve Crogan will be joining Bill Daddio, Doug Davis, and Joe Boche in the Education-Law Enforcement Work Group. Crogan currently chairs the International Precious Metals Institute’s Security Council. Since retirement as a Supervisory Special Agent with the Department of Homeland Security-ICE, Crogan has worked in private sector security investigations within the precious metals industry.
Members of the Numismatic-Public Education Work Group include Michael Fuljenz, Robert Campbell, John Schuch II and Jeff Garrett.
Mar 22, 2018 | ICTA/NCBA
“We welcome the news that the U.S. Senate has confirmed President Trump’s nominee, David J. Ryder, as the 39th director of the United States Mint,” said Philip N. Diehl, chairman of the Industry Council for Tangible Assets.
“It’s hard to imagine a better-qualified appointee. David has served at the Mint before, he knows Washington well, and he brings to the job more than 20 years of experience in the anti-counterfeiting business. We need his leadership at the U.S. Mint as we confront the growing threat coin counterfeiting poses to the nation,” Diehl said.
Philip N. Diehl was the 35th Director of the U.S. Mint —ed.
Mar 8, 2018 | ICTA/NCBA, News
On Tuesday, March 6, 2018, Alabama governor Kay Ivey signed into law Senate Bill 156 to exempt the gross proceeds from the sales of gold, silver, platinum, and palladium bullion, and money from sales and use tax for five years. The law is a sales-and-use tax exemption on U.S.A. coins and currency and precious-metals bullion sales.
“The bill’s author, Senator Tim Melson along with its House sponsor, Representative Ron Johnson, championed the bill through the legislature,” said Phil Darby (J & P Coins and Currency, Helena, Alabama). “Alabama coin businesses and collectors owe them a debt of gratitude.”
In the summer of 2016, Darby, and Steve Caiola (Alabama Gold Refinery, Homewood, Alabama) started collaborating with the Industry Council for Tangible Assets (ICTA) on a campaign to obtain a state coin, currency, and precious-metals bullion sales-tax exemption. Darby and Caiola hired Graham Champion (Public Strategies, Montgomery, Alabama) as the campaign’s lobbyist. Darby, Caiola, Champion, ICTA treasurer Pat Heller, and ICTA chief operating officer David Crenshaw met with the state’s department of revenue deputy commissioner, Michael Gamble, to lay the exemption’s groundwork. In short, our bill (and many others) never came up for debate in the House because other, contentious legislation ruled the 2017 session. Along with hundreds of other bills, our bill died when the session adjourned sine die on May 19, 2017. For the next year’s session, Champion secured Representative Johnson to sponsor our House legislation.
“We promoted the sales-tax exemption as a legitimate jobs and economic-development issue with the legislators,” said lobbyist Champion. “We were pleased with the unanimous support of our legislation in both houses, recognizing the benefits to the state’s revenue, to in-state businesses, and to in-state investors and collectors from eliminating the sales tax. We are also very appreciative that Governor Ivey signed the bill.
“Alabama now joins the 36 other states with a sales-tax exemption,” said Crenshaw. “We thank Phil Darby, Steve Caiola, lobbyist Graham Champion, Representative Johnson, Senator Melson, ICTA Alabama members, and everyone who helped make this exemption a reality.”
The bill was enrolled on Tuesday, February 27, and ratified and presented to Governor Ivey for her signature. The new law’s effective date is June 1, 2018.
“The ICTA partnership, along with lobbyist Graham Champion, was invaluable to the success of our efforts,” said Caiola.
Alabama is now eligible to host a national coin show such as the Whitman Coin & Collectibles Expo. With three industry leading events in Baltimore, Whitman Coin & Collectibles Expo is North America’s leading producer of coin and currency shows.
“We have discussed the possibility of hosting a show in Alabama, however, we have been reluctant because of the sales-tax obstacle,” said Mary Burleson, president Whitman Publishing. “The new law allows us to once again give serious consideration to hosting a successful show in Alabama.”
Mar 5, 2018 | ICTA/NCBA, News
The Board of Directors of the Industry Council for Tangible Assets has appointed seven industry leaders to guide the Anti-Counterfeiting Educational Foundation (ACEF), the non- profit organization recently formed to receive contributions to support the work of its Anti- Counterfeiting Task Force.
Scott Spitzer
ICTA’s board of directors approved the formation of the new non-profit for the purposes of receiving contributions from individuals, other 501(c)(3) organizations, local and regional coin clubs, grants, eBay for Charities, and government agencies. Those desiring to donate to the non-profit foundation should make checks payable to the Anti-Counterfeiting Educational Foundation and mail to P.O. Box 237, Dacula, Ga. 30019.
The foundation’s board of directors will review project proposals from ACTF to ensure that they are covered under IRS 501(c)(3) regulations.
“While we shall be forever grateful to those who stepped forward in our first year to support the work of our task force, we have come to realize that we can’t move forward by drawing from the same small well year after year,” said Diehl who serves as chairman of ICTA and will be serving the new non-profit as treasurer.
Diehl noted that the paper work has been completed and filed and the foundation can receive contributions as it awaits final approval from the IRS. Additionally, he pointed out that collectors, interested individuals, and organizations can now support the task force’s work through tax-deductible contributions of cash or coins.
Formed in January 2017, the Anti-Counterfeiting Task Force’s mission is to mobilize law enforcement to defend the nation’s coinage by educating officials about the economic impact and growing threat counterfeits pose to the marketplace and the public. ACTF serves as the coin industry’s liaison with law enforcement and policy makers, assisting in the investigation and prosecution of suspects involved in all aspects of coin counterfeiting. It also provides education, expertise, and other resources to law enforcement to assist in curtailing the manufacture, importation, marketing, and sale of counterfeit coins, related fakes of precious metals products, and counterfeit security packaging.
ACTF is totally funded through donations from businesses and individuals made directly to the Anti-Counterfeiting Educational Foundation, the 501(c)(3) not-for-profit entity that funds the work and mission of the ACTF. Make checks payable to the Anti-Counterfeiting Educational Foundation and mail to ICTA, P.O. Box 237, Dacula, GA 30019. For information about donating, contact Beth Deisher at 567-202-1795; email beth.deisher@ictaonline.org.
Jan 16, 2018 | ICTA/NCBA, News
Some precious-metals bullion dealers recently have been advertising “home storage” as a legal and beneficial option for storing bullion that may be invested in an individual retirement account (IRA).
The “home storage” concept may conflict with the laws that allow for tax-advantaged IRA investments.
The Industry Council for Tangible Assets has produced a white paper which explains why the “home storage” concept may conflict with the laws that allow for tax-advantaged IRA investments. The purpose of the paper is to try and make it as simple as possible to understand.
The paper has been released to ICTA members to aid them in understanding how the Internal Revenue Code §408 applies to individual retirement accounts. To access the white paper, ICTA members log in at ictaonline.org and select Resources > White Papers > Miscellaneous > IRA Home Storage.
ICTA is also making the paper available to non-members. For information to obtain the white paper, visit ictaonline.org\ira-home-storage-white-paper.
About ICTA
ICTA is a 501(c)(6) non-profit association that represents the rare-coin, currency, and precious-metals communities. ICTA is supported solely by dues and donations. To join and/or learn more about ICTA, please visit our website — ictaonline.org.
Jan 16, 2018 | ICTA/NCBA, News
Industry Council for Tangible Assets chief operating officer David Crenshaw (right) and ICTA treasurer Patrick Heller (left), present Mitch Hyatt (center) with the organization’s Diane Piret Memorial Outstanding Service Award at the organization’s dinner and update cruise.
In the fall of 2016, Hyatt started collaborating with ICTA on a campaign to obtain a state coin, currency, and precious-metals bullion sales-tax exemption. Hyatt hired Chris Emanuel (C.G. Emanuel Group, Charlotte, North Carolina) as the campaign’s lobbyist. He also paid 100% of ICTA’s expenses in aiding the campaign.
Hyatt, Emanuel, ICTA treasurer Pat Heller, ICTA chief operating officer David Crenshaw, and others worked tirelessly to get the legislation enacted. The legislation passes in both the House and Senate in an unprecedented 10 months.
“The ICTA partnership, along with lobbyist Chris Emanuel, was invaluable to the success of our efforts,” said Hyatt.
The team effort these gentlemen displayed is an example of how ICTA members working together can accomplish the passage of such legislation.
About ICTA
ICTA is a 501(c)(6) non-profit association that represents the rare-coin, currency, and precious-metals communities. ICTA is supported solely by dues and donations. The Diane Piret Memorial Outstanding Service Award commemorates the 25-year ICTA career of the organization’s industry affairs director, who died in 2015. To join and/or learn more about ICTA, please visit our website — ictaonline.org.
Dec 14, 2017 | Announcements, ICTA/NCBA
A Loomis Armored representative will discuss transportation and shipping security at the upcoming Florida United Numismatists show. The Industry Council for Tangible Assets will host the seminar. The seminar begins at 8:30 a.m. on Friday, January 5, 2018, at the Tampa Convention Center, 333 South Franklin Street, Tampa, Florida, in room 24. A continental breakfast sponsored by Loomis will be provided.
The topics of discussion will be (1) decreasing risk and safe transportation of high-value cargo; (2) the safety of valuable transportation in the armored industry; and (3) improving the process of high-value transportation.
“We encourage all dealers at the show to attend the seminar and learn the latest on transportation and shipping security,” said ICTA executive director Kathy McFadden.
About ICTA
ICTA is a 501(c)(6) non-profit association that represents the rare-coin, currency, and precious-metals communities. ICTA is supported solely by dues and donations. To join and/or learn more about ICTA, please visit our website — ictaonline.org.
Dec 13, 2017 | ICTA/NCBA, News
There is misinformation floating out around the dealer community intermingling “like-kind exchanges” and three different sections of the tax code (1031, 1099-b and bartering).
The Industry Council for Tangible Assets has produced a white paper which goes into detail providing a comprehensive explanation of each section of the tax code. The purpose of the paper is to try and make it as simple as possible to understand.
The paper has been released to ICTA members to aid them in assessing the effects of these revisions if they engage in like-kind exchanges. To access the white paper, ICTA members log in at ictaonline.org and select Resources > White Papers > Broker Reporting > Like-Kind Exchange and Barter.
ICTA is also making the paper available to non-members for a limited time. For information to obtain the white paper, visit ictaonline.org/like-kind-exchange-barter-white-paper.
For more extensive information on the rules and regulations of filing a 1099-b, purchase the ICTA Broker Reporting Kit at ictaonline.org/information-kits-form.
This white paper and the Broker Reporting Kit is provided to assist dealers and is not intended to be used by dealers as the sole guidance for compliance. Dealers should consult with their tax professional.
About ICTA
ICTA is a 501(c)(6) non-profit association that represents the rare-coin, currency, and precious-metals communities. ICTA is supported solely by dues and donations. To join and/or learn more about ICTA, please visit our website — ictaonline.org.
Dec 7, 2017 | ICTA/NCBA, News
Acting Deputy Director of the U.S. Mint David Motl’s Nov. 17 response to an Oct. 27 letter from U.S. Representatives Frank Lucas (R-OK) and Alex Mooney (R-WV) requesting information regarding the Mint’s efforts to combat the rising tide of counterfeit coins entering the United States lacks commitment.
“While the Anti-Counterfeiting Task Force (ACTF) appreciates Acting Deputy Director Motl’s acknowledgement that counterfeiting represents a serious threat to the nation’s coinage, we are nevertheless disheartened that the U.S. Mint’s efforts on the anti-counterfeiting front do not reflect a serious commitment to act against this threat,” said Beth Deisher, Industry Council for Tangible Assets’ Director of Anti-Counterfeiting who also coordinates the ACTF.
In his letter to congressmen Lucas and Mooney, Motl points to the Mint’s Second Annual Numismatic Forum, held on Oct. 17 to discuss marketplace issues with 68 industry leaders. In fact, this forum would have been an excellent venue for U.S. Mint officials to describe the U.S. Mint’s anti-counterfeiting efforts, but the subject was never raised.
ACTF’s concern is that Mint leaders did not raise the subject because the U.S. Mint is doing little to address the surge of counterfeit U.S. coins now entering the United States. The Mint has long held the position that protecting the nation’s coinage from counterfeiters is the responsibility of the U.S. Secret Service; thus, it has remained inactive when it comes to developing and employing modern anti-counterfeiting technology to protect the coins it manufactures.
On Nov. 9, 2017, eight days prior to Motl writing his letter to Reps. Lucas and Mooney, ACTF representatives met with the acting deputy director and other senior staff at U.S. Mint headquarters. In that meeting, ACTF described three important steps the U.S. Mint has the authority and the financial resources to use today to fight the counterfeiters:
- Respond to the long-standing request from U.S. Customs and Border Protection to register U.S. Mint products with CBP to allow it to identify and interdict counterfeits as they enter the country. To-date, the U.S. Mint has not done so.
- Incorporate (as other sovereign mints have done) state-of-the-art anti-counterfeiting features into the packaging and Certificates of Authenticity that accompany its numismatic products.
- Launch a research and development program to determine the most effective anti- counterfeiting features to incorporate into its precious metals coins. Other sovereign mints are far ahead of the U. S. Mint in exploring these options and incorporating them into their coinage. As soon as practicable the U.S. Mint should draw upon other national mints’ experience and tap private-sector expertise into order to identify and implement the best anti-counterfeiting technology.
In his letter, Motl states that “in the past two years, we have not received any complaints about current-issue gold, platinum, or silver coins.” In fact, in the Nov. 9 meeting with Mr. Motl, ACTF representatives informed him and other Mint staff of evidence of counterfeiters producing fake American Eagle, American Buffalo, and U.S. commemorative coins, all of which are composed of precious metals.
David Ryder, who awaits U.S. Senate confirmation as the next director of the Mint, identified the counterfeiting threat as one of his top priorities. Ryder has deep experience in the field of anti-counterfeiting technology, and the U.S. Mint is in dire need of leadership that takes this threat seriously. ACTF encourages the U.S. Senate to act quickly to confirm him.
Mint response on counterfeits 20171117
The Industry Council for Tangible Assets formed the Anti-Counterfeiting Task Force’s in January 2017. ACTF’s mission is to educate law enforcement authorities and policy makers about the rising threat of counterfeiting, mobilize law enforcement to attack counterfeiters where they are most vulnerable, and provide expertise and other resources in the investigation and prosecution of counterfeiters and those involved at all levels of their distribution networks.
ACTF is totally funded through donations from businesses and individuals. For information about donating to support the work of the task force, visit
www.ictaonline.org/actf or contact Beth Deisher at 567-202-1795; email
beth.deisher@ictaonline.org. Make checks payable to ICTA Anti-Counterfeiting, P.O. Box 237, Dacula, GA 30019.
