Ballwin Man Arrested in Connection With Auction Fraud

A Ballwin man was arrested Wednesday in connection with an FBI investigation of a chicago-based auction house, which was recently indicted for 16 counts of fraud.

William Boehm, 63, of Ballwin, was Mastro Auctions’ director of information technology. Mastro Auctions’ owner and two executive directors were indicted earlier on fraud charges for “allegedly rigging auctions through a series of deceptive practices, including so-called ‘shill-bidding,’ designed to inflate prices paid by bidders and to protect the interests of consignors and sellers at the expense of unwitting bidders, according to an FBI press release.

Boehm was charged with providing false statements to the FBI agents investigating the case.

Mastro Auctions billed itself as the “world’s leading sports and Americana auction house,” according to the FBI, and allegedly defrauded customers by providing false or misleading information about their memorabilia as well as inflating prices.

Some of Mastro Auctions’ alleged practices include altering a Wagner T-206 baseball card by cutting the edges without informing bidders, as well as selling some of Elvis Presley’s hair, which DNA tests found its authenticity to be “questionable.”

In 2007, according to the FBI, Boehm told agents he created a fake account in order to catch an employee whom the company suspected of stealing. The account, however, was allegedly used to make fictitious bids.

The owner and executive directors face a 16-count indictment of mail and wire fraud, and could face 20 years in prison, a $250,000 fine and a mandatory restitution.

If found guilty, Boehm could face a maximum penalty of five years in prison and a $250,000 fine.

Gary S. Shapiro, the acting US Attorney handling the case in Illinois, said customers should be extremely aware of the risks of participating in online auctions.

“Consumers might be lured to the auction market for sports memorabilia and other collectibles by an emotional attachment to an item or purely as a calculated investment, but, as the allegations in this case demonstrate, bidders must remain mindful of the maxim ‘Buyer Beware,’” said Shapiro said in a press release. “Consumers have a right to be protected from deceptive and dishonest sales practices, and we will prosecute those who fraudulently rig auctions at the expense of bidders as the indictment alleges in this case.”