It should come as no surprise that one of the hottest markets in the antiques and collectibles trade is the market for sports memorabilia. Rarely does a month go by without a significant piece of sports memorabilia smashing previous auction records. The sports trading card and memorabilia market has certainly come a long away over the past few decades. Today, the market comprises a lot of high-profile investors that are willing to pay six figures or more to secure some of the most historically significant pieces. It is this kind of money regularly changing hands that has unfortunately also brought with it the opportunity for fraud. Fraud is a concern in any collectibles market, but the amount of fraud occurring in the sports memorabilia market is nothing new. In fact, the FBI was investigating severe fraud in this market back in the 1990s. Operation Bullpen was the name of the FBI investigation into alleged forged sports memorabilia and autographs that took place from 1999 to 2006. When concluded, the investigation uncovered over $100 million worth of fraud. If that number doesnt seem like a lot, keep in mind the conclusion of this investigation was in 2006, almost 20 years ago. Twenty years ago, sports memorabilia prices were not as high as they are today, when the sports memorabilia market is ripe with financial investment. Prices have been soaring these past few years, and in my humble opinion, that $100 million figure would be about $300 million or more at todays values. It is due to the ever-present risk of fraud in this market that I truly ask all collectors and investors of sports memorabilia to use extreme caution. Only buy from trusted sources, whether it be through dealers or auction sites, and if it seems too good to be true, simply walk away, as it probably is. I have personally heard many tragic tales of enthusiastic collectors being scammed out of serious amounts of money over the years due to well-crafted forged signatures and items whose provenance does not match what the seller claimed. However, even all these tales pale in comparison to what was uncovered when authorities issued a search warrant for a location in Westfield, Ind. The location in question was raided on July 15 and was believed to be connected to Brett Lemieux, a well-known sports memorabilia dealer. Unfortunately, in a tragic turn of events, the accused, Brett Lemieux, took his own life rather than face the potential consequences for the allegations against him. Just hours before his death, Lemieux admitted to the forgeries on social media and stated the value of the forged goods was estimated to be between $500 to $700 million, according to an online article published by Sports Collectors Daily and titled, Mastermind of Autograph Counterfeiting Scheme Had Been on Radar of Indiana Prosecutors for a Decade. If these numbers are to be believed, this is one of the most massive and sophisticated counterfeiting schemes in the history of sports memorabilia, far eclipsing that of Operation Bullpen. And even as I write this, new details are still emerging. To anyone who has a passion towards these items, make no mistake, this will affect the market going forward as most of these pieces are still not accounted for. That said, it should be noted that certain high-profile individuals and companies involved in the trade dispute the value of the counterfeit goods and claim it is nowhere near the $500 to $700 million that Lemieux declared. However, at present time, we really dont know for sure and probably wont know for many years to come. A lot of these fraudulent items are sitting in collectors collections or locked away in safes and safe deposit boxes. The damage stemming from this should not be discounted. I have stated many times now in previous articles, all markets in the antiques and collectibles trade are, of course, prone to fraud and misrepresentation. One way a collector can protect themselves is to use, if available, trusted third-party grading services or authentication companies. There are companies that can also authenticate signed autographs, but the measures and techniques these companies use are not foolproof. One of the worrying trends in a lot of these markets is the development of artificial intelligence as an aid to counterfeiters. The high-end art market has already been the target of several sophisticated scammers. There is an excellent documentary that appeared on Netflix in 2020 aptly named: Made You Look: A True Story About Fake Art. It is worth watching if you have the time and shows just how fragile these markets are, especially when millions of dollars are exchanging hands for one painting. I have long argued that the antiques and collectibles trade needs more regulation. During the 1980s when Wall Street started manipulating the price of rare coins and convincing people on Main Street to invest, the government and mainly the FTC got involved. Today, we have social media influencers, high-profile auction companies, and even some third-party grading companies all claiming that the antiques and collectibles trade should be seen as a valid alternate asset class. Not ironically, this is being pitched in a day and age where we have Pokemon cards that can easily sell for five to six figures or more. Main Street is once again listening to the people who benefit the most in these markets when prices rise. This is making me question: Who is here to stand up for the average collector or investor on Main Street? Where have we seen similar events unfold? The 2008-09 financial crisis comes to mind. As a result of these developments, one thing should be quite clear right now; the trade cannot regulate itself. And if there is any sports memorabilia collector that disagrees with me, I sure hope you arent holding one of these worthless trinkets that you paid top dollar for. Because unlike the 1990s when the government took swift action against some of those Wall Street firms who were busy peddling rare coins to investors who had no business buying rare coins, it would appear that we as collectors are on our own. Maybe that needs to change? It is just a thought. Shawn Surmick has been an avid collector since the age of 12. He currently resides in his hometown of Boyertown, Pa., and is a passionate collector of antiques and collectibles. His articles focus on various topics affecting the marketplace.