http://beckett.com/news/index2.asp?a=246
---------------------------------------------------------------------
Feds seeking arrest of Illinois dealer
10/27/1999 2:59:26 PM

The FBI, according to a criminal complaint filed Tuesday, has submitted an affidavit to obtain an arrest warrant for memorabilia dealer Steve Ryan, proprietor of North Shore Sports in Northbrook, Ill.

The FBI's latest move is part of the ongoing saga of Operation Foul Ball - a federal investigation targeting individuals and businesses involved in the manufacture and distribution of forged sports memorabilia. Operation Bullpen, a much broader investigation targeting similar fraudulent activities, was the sting operation involved in more than 50 raids across four states two weeks ago.

The criminal complaint indicates Ryan, whose actual name is Steve Levine, has violated mail and wire fraud laws related to the distribution of fraudulent memorabilia. According to the document, Ryan previously was arrested five times on violations ranging from larceny to obstruction of justice. His criminal record is under the name Levine.

North Shore Sports conducted its Final Millennium Major Phone Auction on Tuesday. This auction was carried out despite assurances from Ryan's attorney to the FBI that the auction would not take place. According to a federal agent who spoke with Beckett Hobby Insider on Tuesday, all the items in the auction were under subpoena and therefore could not be sold.

Furthermore, the document states Falk Associates Management Enterprises (FAME), the company that represents Michael Jordan, warned Ryan against hosting the auction. Tuesday's auction featured several Jordan items.

This was not the first time North Shore Sports conducted business involving Jordan items and against the wishes of FAME. The complaint states that on Dec. 13, 1996, Ryan received a cease and desist letter from Jordan's representatives. Despite that action, Ryan continued to "falsely imply that North Shore Sports has an exclusive relationship with Michael Jordan," the complaint states.

The document also states that throughout the investigation, the FBI identified "hundreds of items sold through Ryan's auction that have been misrepresented as something other than what they actually were." Also, the document states the FBI did inform Ryan "that the majority of Michael Jordan related items which he sold and continues to sell through his auction were (are) fraudulent."

In North Shore's auction tabloid - a supplement to the Oct. 29 issue of Sports Collectors Digest (SCD) - auction lots featuring Jordan memorabilia are accompanied by product descriptions using the names of SCD columnist Dave Miedema and New York-based Grey Flannel Auctions to lend credibility to the items' legitimacy.

The tabloid uses the names of these parties despite the fact Ryan was previously informed by federal agents that Miedema and Grey Flannel "have routinely authenticated forged items of sports memorabilia originating from Anthony Alyinovich, John Schwartz and others who have acknowledged marketing items which have the forged autographs of Michael Jordan and other athletes," according to the document.

Also, the document states that Ryan actually agreed with the FBI's findings that Miedema and Grey Flannel Auctions were not reputable authenticators.

Alyinovich pled guilty to mail fraud related to trafficking counterfeit sports memorabilia in July 1996. He received five years' probation. Schwartz, who was recently released from jail after serving more than a year, was convicted of mail fraud and tax evasion in February 1997.

The document also detailed the business relationship between Alyinovich and Miedema. Alyinovich indicated Miedema authenticated any item he gave Miedema. Alyinovich went on to explain that "he provided Miedema with large boxes that contained numerous items of sports memorabilia and that Miedema could generate certificates for each item of sports memorabilia within ten minutes." Also, Alyinovich said Miedema "on most occasions" did not even look at the memorabilia he was authenticating.

The document also states that during a search of the residence of former dealer Steve Berg, 200 blank certificates of authenticity with Miedema's signature were discovered. Berg, who formerly operated SDB Enterprises from his home in Chicago, pled guilty to selling forged memorabilia in April of this year. His sentencing is scheduled for next week. At a date following the search of his residence, Berg told the FBI that "Miedema would routinely provide certificates of authenticity for items which he never attempted to authenticate, and more importantly never saw."
-------------------------------------------------------------------

Rudy.