Arrests Throw Forgery Ring a Curveball

Helped by a tip from baseball star Tony Gwynn, federal authorities have broken up what they say was one of the nation’s largest and most complex schemes to sell fake sports and celebrity memorabilia.

Twenty people were arraigned Tuesday in federal court in San Diego on charges of conspiracy, mail fraud and other crimes. Five more are awaiting arraignment and other arrests are likely, authorities said.

Officials said the scam included fake autographs from sports stars, entertainment headliners and historic figures such as John F. Kennedy, Albert Einstein and Mother Teresa.

As part of a three-year investigation dubbed Operation Bullpen, FBI agents and informants bought and seized enough baseballs, sports equipment, photographs, guitars and other items to fill a 10,000-square-foot warehouse, said officials, who estimated that a one-month output of phony goods from the ring was worth $10 million.

The investigation got a major push when Padres star Gwynn noticed items being sold with his supposed autograph. Gwynn and Cardinals slugger Mark McGwire cooperated with agents in distinguishing phony autographs from real ones.

The indictment, which was unsealed after the defendants offered to plead guilty, alleges that the ring may be responsible for $500 million to $900 million worth of fraudulent items sold in the United States in recent years.

The indictment states that 50% to 90% of the items sold on the memorabilia market--which flourishes at shopping malls, online services, flea markets and cable TV auctions--may be fraudulent.

“This is not an isolated case of a few forgers,” said Assistant U.S. Atty. Phil Halpern in San Diego. “This is a national network that has basically corrupted an entire industry.”

The 20 people arraigned Tuesday face prison sentences of up to five years each.

Those charged are from throughout Southern California, including Long Beach, Santa Ana, San Clemente, San Diego, Del Mar and La Jolla.

A father and son from Escondido were named as master forgers for the ring.

“The quality of the forgeries was remarkable,” said Daniel R. Dzwilewski, assistant special agent in charge of the FBI office in San Diego. “You name it, they would forge a signature.”

According to the indictment, the forgers attempted to mask their crimes by using vintage paper, even finding paper from the 19th century to use for an Abraham Lincoln forgery.

But even master forgers make mistakes: Some of the baseballs “signed” by stars of the past were imprinted with the names of commissioners who had not yet taken office when the star died, authorities said.

They said the ring included forgers, distributors, packagers and even people who masqueraded as experts able to verify the authenticity of the items.

Although there have been other criminal cases of fraud and forgery involving memorabilia--including the conviction last year of a Newport Beach dealer--officials said this case was the largest and most far-reaching.

The indictment suggests that some retailers knowingly sell fraudulent items and that others may be duped.

“If you’re buying a Yogi Berra, Mickey Mantle or Babe Ruth autograph, chances are that it’s phony,” Halpern said.

The indictment, announced by U.S. Atty. Gregory Vega and William Gore, special agent in charge of the FBI’s San Diego office, was the product of a joint investigation that included the IRS. (Some of the defendants face income tax charges.)

Once the case is concluded, officials said, they will mark over the phony autographs and distribute the sports equipment to youth groups.

However, forgeries are sure to continue, they noted.

“We definitely put a dent into the business, but to think we got it all--we’re not even close,” Dzwilewski said.