I reported last month on the total disaster at mossgreen Auctions Melbourne that closed with no warning, owing vendors about $A12 million.  Not a cent of which will be seen by anyone I feel, after the Administrator rapes and pillages the rather modest cash on hand kitty, at $100,000 or so in fees each week.

tinyurl.com/mossAuct has the very long and detailed discussion on stampboards.com of this huge crash, and all the general mass media reports.  And outlines all the twists and turns, and broken promises and denials, and the blame game etc, that has accompanied it all.

The administrators BDO sought, and were very oddly to me, granted, a Federal Court order allowing them to bill out their time until end April, rather than end January.  January 31 was when creditors were advised was the original time frame to seek a White Knight, or otherwise to conduct the funeral, and bury the ashes, and divide up the few morsels left. 

Vendors who sold material at mossgreen during 2017 and who were not paid out already when the ship hit the rocks late December, have zero chance of getting all their money.  It may transpire in the final wash up, they get a few cents on the dollar owed, but the future looks very bleak, to put it mildly.

The Administrators reported the company owed about $A12 million, but had assets of about $A3 million.  And those meagre “assets” include about $A1.2 million for purchases made, and not yet paid, and clearly not all those invoices will be settled, given this mess.  Would YOU bank transfer $1,000 or $10,000 now, and HOPE some bean-counter mailed you the goods?? 

The BDO Administrators of course charge like wounded bulls - with even a “Junior Cadet” billing out their time at $236 an hour - I kid you not!  See their fees chart nearby.  As I was on the creditor list, I got the full fee schedule being charged out, whilst the corpse was being picked over.

Their fees between the December 21 appointment, and the January 4 first creditor meeting, were disclosed at about $A200,000 alone - and near everyone nationally was on holiday then!  $A100,000 a week over the holiday break.  Long suffering creditors have heard nothing on the fees amount since then.

From January 4 the fees clock went into overdrive I am sure, fending off legal and vendor enquiries, sacking 50 staff, dealing with media interviews, initiating Court actions and so on, all billed out at these mega hourly rates.  That is how these things often pan out, as history shows us - much of what modest cash assets are on hand, evaporates in Administrator and legal fees etc. 

Charging $2,826 to return a few unsold newspapers to one vendor (see below) pays for quite a few hour’s wages of the BDO’s most inexperienced persons - "Junior Cadets" charge out at $215 an hour plus GST ($A236.50 an hour) to the hapless mossgreen creditor victims.  All the cash on hand will be conveniently gone by end April via BDO billings, I feel sure.

In a surprise twist on February 11, creditors were advised the stamps/coin/postcard division would NOT be closed down, but had been “sold” to Abacus Pty Ltd, a new company set up in Kooyong Victoria, run by ex-mossgreen staffers Torsten Weller, Gary Watson and Nick Anning.

Good luck to them, and as they were owed about $125,000 as creditors, it must have been an interesting deal to set up, and I hope lessens their otherwise large looming losses.  No idea where that Auction will be based, as I have heard nothing from the 3 Mossketeers, other than what others have gleaned, and then posted on stampboards.

Even more interesting was this new auction venture Abacus essentially gets all the many consigned stamp/coin related lots by default, using the original mossgreen terms, saying that the original Conditions Of Sale agreements applied, unless the owners specifically demanded them back etc. 

The trio claim their first auction is possibly set for ‘April/May’, and also claim their auctions will have some unspecified Trust Account type protection for vendors.  I certainly hope they clearly offer that via AVAA membership - a national body that DEMANDS auditor signed proof, that vendor monies are in fact being held in a Trust Account. 

The Auctioneers and Valuers Association of Australia (AVAA) said after the mossgreen mess -  “The regulation for auctions are varied across Australian States and Territories, with Queensland requiring auctioneers hold a Trust Account, whereas New South Wales, Victoria and Western Australia do not.  This is why the AVAA has moved to introduce mandatory requirements for all members”

“As part of its role to ensure the highest professional standards among auctioneers and valuers, the AVAA has an established Code of Conduct that requires members to maintain a Trust Account that is subject to an annual audit.  Furthermore, the AVAA requires its members have professional indemnity insurance in place, to provide assurance to clients should there be negligence on behalf of valuers.”

So to anyone with any fiscal common sense, insisting ANY stamp auction you deal with is a member of AVAA, and seeing proof of that on AVAA website, is simply non-negotiable I’d suspect.  From all savvy vendors, after this mossgreen total train wreck.  All stamp auctions I feel sure will rapidly join up, after this mess has destroyed vendor confidence.

They all claim to be APTA members which is totally meaningless, as APTA do nothing.  As the mossgreen vendors saw, who lost it all, and as Velvet Auctions vendors all did, losing a $ million or so, when owner Danny Jurd was Federal Treasurer of APTA (!), yet was apparently trading whilst insolvent for years. 

Stamp Auctions squandering monies paid for vendor stamps, as Velvet and mossgreen did, (and many cavalier stamp auctions did before them, in bygone Cowboy decades) is NOT OK in 2018, and those monies should be strictly escrowed for payment to vendors, and NOT be used to pay rent, airfares, ads, Director fees and salaries etc, etc.

NO trust accounts were used by mossgreen. This sounds absurd when huge figures like $1.75 million a vendor are involved.  Most homes are not of that value, but THEY have trust account protection.  The BDO meeting Chairman advised the January 4 first creditor meeting: "the company was not required by law to operate a trust account.  Auction monies were essentially used to fund the working capital and trading losses of the business."

Abacus team Nick, Gary, and Torsten were running the stamp and coin side at mossgreen just fine, it seemed to me, and my guess is they were not the area bleeding red ink there. They had no hands on the cheque books in at mossgreen, and touring Mick Fleetwood, and running wanky Cafes etc!  These 3 probably have 100 years of stamp experience between them.

The Prestige Auction website was a totally invaluable resource, hosting many, many, 1000s of hours of expert research back covering over 17 years, and showing the PRICES they sold for, and covering material from countless stamp fields - prestigephilately.com  Abacus secured the rights to that superb resource.

These dopey Administrators BDO totally removed the mossgreen website on Friday January 19, so the 100s of hapless vendors trying to look up their sold lots from past auctions, that have not been paid for etc, or see what lots they need to check must get returned etc, cannot now see a thing.  Web Hosting costs near ZERO.

Hence many of the stamp and coin auctions held last year are gone forever now, as sadly the Prestige website had been a bit slack, and had only loaded sales up to the June 2017 sale.  However if Abacus have also retained Gary’s original webmaster from mossgreen, the other 6 months might be added later?

That is exactly why I set up stampboards.com 13 years ago - far too much superb philatelic info is posted online, and simply vanishes overnight forever, when not in the safe and secure hands of those who think long term, with Big Picture vision, and/or have the finances to pay the hosting fees forever. 

There are now 5+ MILLION posts there, on over 75,000 topics, from about 18,000 stamp members, in more than 150 countries.  No-one else philatelically globally comes even remotely CLOSE.  All superbly google indexed, and hence viewed by MILLIONS of collectors a week, widening the hobby more than anything else can.

Superb to hear this valuable Prestige web resource was saved.  If this new ownership venture did not emerge - as I hoped it would, I had planned to make a cash offer to buy the website, and all data content as it now exists, from the Administrator, and leave it stand untouched as a permanent archive resource for global collectors.

Just as I did 10 years back, with all of my late departed colleague Simon Dunkerley's website pages, and all his quite brilliant articles and research.  Done with full blessing of his widow Angela, and 'Stamp News' - which I will fund for perpetuity - and all the detailed material there is worth re-visiting - tinyurl.com/SimDunk

Angela phoned me a couple of years after Simon passed, and was so pleased the website had been saved, as it was the ONLY thing the young boys had to look at, as evidence of just how respected and accomplished their father had been in this hobby. Simon had disposed of virtually all paperwork at his flat, so there was literally nothing left.

Getting your material consigned or unsold many months back from mossgreen is a cinch, many vendors may have thought.  WRONG.  One chap added a note on stampboards that he sold some stuff in 2017 there, and had 8 lots of old historical newspapers that did not sell.  More here - tinyurl.com/mossAuct

Vendor wanted them back, and assumed that would be offered as a service by the Administrators.  WRONG.  The 8 unsold lots had original mossgreen estimates of $A1,650.  The blood sucking Administrators BDO advised him the cost he needed to pay up-front, to get his OWN old newspapers back, was $A2,825.  Near TWICE their retail worth.

This vendor reported if he did not pay this outrageous sounding ransom demand with 30 days from date of the demand, BDO advised him they would be treated as “abandoned goods”, and be disposed of however BDO saw fit, from my reading of their aggressive missive.  They demanded $A353.20 PER item, to cover “costs”.   Read even more BDO fees leeched off.

Crazier still, was the large ad that BDO placed in the “Public Notices” section of “The Age” and also I understand, in “The Australian Financial Review” and possibly other national newspapers, on February 15.  It is shown nearby, and seems very clear.  This is aimed at CONSIGNERS, not past vendors it seems.

So not only are these leeches BDO, charging owners of UNSOLDS twice their retail value to get their own goods back, (many of who will not have been paid for what DID sell) they are now legally advising CONSIGNORS of goods that those goods can be treated as "abandoned" and dumpstered etc (yeah, sure) if you do not contact them within 4 weeks.  And are also quoting the insane fee of $A353.20 PER lot to return them!

So, assume you were downsizing, and consigned all the furniture, paintings, and art work etc to mossgreen late 2017, went on a holiday overseas or Grey Nomad for 3 or 4 months, so can't open or read any letters mailed to you, and you have legally lost the LOT by your return?  Just plain crazy.  No phone number, no person’s name or address to write to in the ad - not all older folks have email.

National ”ABC News” February 17 took the “Ransom” story a lot further, confirming the Ransom demand outlined above, re the unsold newspaper lots, and confirming the stampboards members post that BDO were demanding a flat $A353.20 “Ransom” per unsold or consigned item, regardless of estimated value  

“Not-Negotiable” the BDO Head Vulture states, to cover their alleged outrageous expenses.  EACH unsold  lot costs you $353.20 to return, even if the estimated value was only $50 or $100.  Vendors and consignors have four weeks to pay the Ransom, or you lose YOUR goods forever.  And BDO claims your goods are then legally theirs, and they can they seem to feel, sell YOUR goods, and keep all the money!

BDO Head Vulture, James White told the ABC: "In storing the consigned goods, Mossgreen incurred costs in identifying, preserving and maintaining them - it is not appropriate for Mossgreen's estate to bear those costs, which include wages, rent, security, insurance, legal fees and the administrators' reasonable and properly-incurred time, costs and disbursements in that exercise.”

"Given this, a levy will be imposed on consignors in collecting their goods in order to meet those expenses. Charging a levy on consigned goods is consistent with applicable law, and has been applied in previous situations similar to this."  White told the ABC.  The goods include unsold items from recent auctions, items held for future auctions, and items sold at auction, but not yet collected by the purchasers, according to the ABC.

tinyurl.com/MossRansom has the ABC article.  The latest development more than triples the number of people set to lose money in the mossgreen collapse, they state.  In January, collectors who still had goods being held by the company were told in writing by the Administrator, BDO Australia, that such items were NOT part of Mossgreen's assets, and would be returned to them, after a stocktake was carried out.  I got the same email.

Antony Davies, a toy collector based in Braidwood in NSW, has more than 78 unsold lots being held by Mossgreen, worth a total auction estimate of $17,000.  He has been told he needs to pay $27,549.60 in fees in the next few weeks, if he wants his goods returned, according to the ABC News report.  Otherwise he will lose them all, it seems clear.

"This action by the administrator is just unconscionable" Mr Davies told the ABC.  "To make us pay more money in fees than our goods are worth is extremely unfair.  And to increase the amount of people affected, who have done absolutely nothing wrong - I'm very angry."  Mr Davies' toys, ranging in value from $50 to $1000s each, were put up for auction through Mossgreen's website in December, but failed to all sell.

Correspondence sent from BDO Australia to Mr Davies and other vendors in January said that his goods would be returned or could be collected January 31, but did not mention any fees were applicable, or planned.  Davies contacted the administrators in December and January to try to collect his goods, but was told that was not possible, ”until the stocktake was carried out’’.

Mr Davies, who is also a former Sotheby's auctioneer, said he believed most people would end up forfeiting their property. "Of the 10,000 thousand objects they hold - a great many of them would be worth under the fee they would charge," Mr Davies said.  "They're assuming most people won't bother paying it, so they will simply confiscate and take most people's property."

BDO Australia is holding more than 10,000 items on consignment at four sites in Victoria and one in NSW.  Based on those figures, it seems it is seeking to raise over $3.5 million from the ”levy” from the hapless consignors for future auctions, and owners of unsold lots from past sales.

Jenny Buchan, a Business Law Professor the University of NSW, said: “BDO Australia was being rapaciously optimistic  There isn't anything clear in the consignment contract I could see, that would give them the right to charge quite a sizeable amount per consigned lot," she told the ABC on February 17.

“The Australia Financial Review” also ran with this story on February 16.   BDO Head Vulture, James White told the AFR  "The amount of the levy is not negotiable.  If you dispute your liability to pay the levy, we recommend that you seek independent legal advice."  The AFR says clients have been given four weeks to pay the levy, or told their items will be sold, and the money absorbed into the collapsed company.

I think it's highway robbery," said Tom Lowenstein, the high-profile accountant who helps manage the affairs of artist Charles Blackman among many others. Mr Blackman handed 25 drawings to Mossgreen last year for an auction that was due to occur in February. The celebrated artist has been told he must pay $A8,825 (charged at $A353 per lot) before his sketches will be returned. "They are his works, and they are his property"  Mr Lowenstein told the AFR.

A horrible and tangled mess, and BDO will be clawing back chunks of the dwindling cash on hand until end of April, the Federal Court has now approved for some reason, bolstered by many millions more now levied on unsolds and consigned goods.  I cannot imagine a happy ending for the hapless vendors owed $A12 million from the crash.  BDO will get near all of it I can bet.  Lots more here - tinyurl.com/mossAuct

Sounds incredible and impossible, but this is a totally true story that someone on stampboards raised this week - a heap more detail on it here - tinyurl.com/MailedMan  Includes a recent interview with the man involved Spiers.  Had not heard of it before, so I’ll share it with readers, for a smile, after all the mossgreen doom. 

In the mid 1960s an Australian named Reg Spiers had his wallet stolen in London, leaving him broke and homesick, and wanting to visit his wife here, and his young daughter for her birthday.  Back then, an airline ticket for this 21,000 Kilometre trip cost an absolute FORTUNE.

A Qantas return airfare Australia to London was, (adjusted from Sterling) $A980 for economy class (which then was VERY spacious!)  and $A1,232 for First Class, but the average weekly earnings were just $32.20 a week.  Using today’s average wage as a comparative yardstick, we have economy class for $A47,786 and First Class for $A60,074

One of our girls is flying to London soon, and the cheapest fare one way they found was $A603 on Thai Airways - for 24 hours of flying.  Good one connection trip, and quality planes, and quality airline - the cost of long haul travel today, WHEREVER you live, is incredibly cheap now, compared to what we earn.

Spiers had worked in airline freight handling, and knew airlines often shipped goods “COD - COLLECT” - meaning the recipient paid for the consignment upon arrival.  So, he had a mate in UK build him a large wooden crate, planning to address it to a fictitious name and address in Australia, and then exit the box quietly when it reached Australia, and vanish.

The wooden box maximum for airline freight was 5ft x 3ft x 2½ feet = 1½m x 0.9m x 0.75m.  The crate allowed him to sit up straight-legged, or lie on his back with his knees bent. The two ends of the crate were held in place by wooden spigots operated from the inside, so Spiers could let himself out of either end. It was fitted with grab straps to hold him in place, as the crate was loaded and unloaded.

To avoid any suspicion that a person was inside, the crate was labelled as containing a shipment of special paint, and addressed to a fictitious Australian shoe company.  Packed into the box was some tinned food, a torch, a blanket and a pillow, plus two plastic bottles - one for water, one for urine.

Spiers crate was loaded onto an Air India plane bound for Perth, Western Australia.  Although Spiers wanted ultimately to get to Adelaide, Perth was chosen because it was a smaller airport.  Things started badly after he endured a 24-hour delay at the airport in London due to fog, and then an unexpected fuel stop in Paris.

The next stop on the long journey back to Australia was in Bombay, where baggage handlers parked Spier’s crate on the tarmac - upside down - in the Indian sun's full glare for four hours. "It was hot as hell in Bombay, so I took off all my clothes" Spiers said. "Wouldn't it have been funny if I'd got pinched then?"

"They had the thing on its end. I was on the tarmac while they were changing me from one plane to another. I'm strapped in, but my feet are up in the air. I'm sweating like a pig, but determined not to give up - wait, be patient - and eventually they came and got my crate, and put me on another plane"  Spiers continued.

When the plane finally touched down in Perth, via a fuel stop in Singapore, after ~60 hours in the crate, the cargo hold was opened, and Spiers heard the Australian baggage handlers swearing outside, about the size of the crate he was in.  He knew immediately he was safely back home.

"I knew they would take the box to a Bond shed.  When they put me in the shed I got out straight away. There were cartons of beer in there.  I don't drink but I whipped a beer out, and had a drink of that."  There was near zero airport security then, and Spiers quietly walked out of the terminal, and freedom.

Arthur Gray formed the largest and finest collection of Australia, and Australia States stamp booklets ever formed.  As you read this, they have likely been sold - not that the vast majority of collectors, or potentially interested buyers of these rare pieces know it even occurred. Very weird.

Why the Gray family has persisted with consigning things to Spink London, who oversaw an unmitigated disaster of his QE2 specialised stamp collection last year, I will never know.  UK sales by Australians gets one embroiled in UK VAT taxes added on for all the UK bidders as you are NOT an EU vendor, and the absurdly high Spink buyer fees and credit card gouges etc for all buyers.  And a daily variable Sterling rate.

Spink as usual told almost no-one here of the impending sale, arrogantly assuming their mailing list and sub average website will get the job done.  It does not in 2018.  Shock horror - a tiny bit of effort is necessary to fully reward the vendors.  The rare Russia stamp shown nearby is a perfect example. Spink seem to have told few folks relevant that they had it. 

Stampboards.com had discussions on the Gray Booklets, and probably attracted a heap of bidders that Spink have never heard of before.  I should send them an invoice.  Apart from that, 100s of potential buyers of these did not even know the sale was even occuring.  There is ZERO excuse for that.

Page Ads in the local stamp magazines etc, and informative Press Releases are what achieves market awareness and mega prices, and savvy Auctions do just that.  Spink did not bother.  Seigel’s in New York in FEBRUARY had a superb website up and running for the Bill Gross USA Collection in SEPTEMBER etc. 

On the same day Spink, had a superb Australia Kangaroo collection with MUH corner blocks 4 of all the high values to £2 etc. And rare Imprints and monograms etc.  Again - no magazine ads placed here, no press releases, no excitement, no vibe.  I had received a catalogue of NEITHER as at Feb 18 as this is filed, and ditto several other large dealers I know.  More total laziness, and disregard for maximising the vendor results in my book.

Me, I do not reward laziness in any field with my patronage and business, and I simply cannot be bothered dealing with Auctions like Spink, who rely on tradition and good luck to garner sales, rather than earn the heavy bidding and ensuing commissions, by doing some bog basic groundwork and ublicity such sales.  And am not alone.

Phoenix Auctions in Melbourne offered Dr William Mayo’s superb world booklet collection in recent times, and got global bidding, and a good client list for this field.  Why Arthur’s Booklets did not go there - who knows, but he would be turning in his grave with annoyance at this lazy offering by Spink I am sure.  AUSTRALIA is the market for them, not UK.

Sure these booklets are easy to sell, and all doubtless will, as many of the early £1 Roo and State books are unique, and cat ~£20,000 each.  I suspect I could have offered the Gray Family cash on the spot, FAR more than they will net from Spink, after currency exchange rate screws, and commissions, and UK taxes deducted etc, etc.  Sad.

As my stamp mentor Ken Baker told me several times - “Son, it takes no skill or expertise to sell scarce stamps for way less than they are worth.”  Spink are commission agents so it makes absolutely no great difference to them, whether one of these booklets sells for £5,000 or £10,000 - the buyer commission is all profit.

Arthur Gray bought over all his stamp booklet collection at one point so I could scan all the covers and contents for posterity, as SG did not have a single booklet cover illustrated pre 1950.  So, when I passed them onto Hugh Jefferies, Editor at Stanley Gibbons, the Australia and States booklets listings were transformed, with many of Arthur's gems, the images you now see there.

As Spink London use Dinosaur standard images, their pictorial results are cruddy as usual, front covers only, no contents even, or reverses, so decent scans are added here for posterity, of some of the Gray gems I did.  These earliest £1 Australia stamp booklets are massive - each the size of an ACSC cat - or near a Hagner page width.  Almost no collectors have seen even one of these, much less a bagful!

They were in a wide range of cover colours and papers, and with views of different GPO's on backs - and now we know some had even pictorial scenes.  Nobody knows for sure what views they all were, or how many were made. The inside covers as can be seen, were ruled up to allow for offices to use for recording the daily useage for accounting etc.  Very strange that so few survived - even empty ones - and large numbers were sold.

Well you will not be alone!  I am guessing about 95% of readers never have, and I never had until this week when stampboards had a discussion on the example shown nearby.  It is Russia’s FIRST stamp.  For most readers it looks like an embossed postal stationary cut-out, I am sure.  It is very small normal stamp size - 2.2 x 2.4mm.

The story of how this stamp was discovered is a VERY interesting read!  Well-known NZ collector Robin Gwynne saw an old 1876 “Oppens” stamp album in a local stamp auction. The book was in good condition, and it contained many better old 1800s stamps globally, from the GB 1840 1d and 2d imperfs, so he paid $NZ3,300 for it.

This white stamp he assumed was of little value or significance, and given the other nice stamps in there, he disregarded it as a postal stationary cut-out.  He later sent it to New York for a Certificate which came back as: ‘Tiflis Embossed - FAKE.  In my opinion, this stamp is a forgery’.

That was that, but then someone offered him £5,000 for it - despite knowing it had been expertised as a “fake”!  An English friend felt it might be OK, and ran it past the RPS London and Chris Harman there, who after much research decided it was indeed genuine and gave a clear RPS Certificate.  One of just 6 recorded, two of those are in institutional collections.  First example to appear in 75 years!

Tiflis is the former name of Tbilisi, the capital of Georgia. It was there that the first Russian stamp was officially issued in mid 1857. Essentially the stamp was a local, designed to carry mail between Tiflis itself, and the summer residence of the Tsar’s representative at Kodzhory.  But it is far more than a mere local issue.

Spink London ran it to an auction, and it got over £200,000 after the Spink Buyer Fee and VAT on Buyer Fees etc, which add to about 24% total.  I’d suggest if Feldman Switzerland has offered it, the figure would have been IMMENSELY higher.  The market for early Russia - IN Russia, is RED HOT.