SAN DIEGO — 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.
