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About POGO's Federal Contractor Misconduct Database (FCMD)

The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »

Ranking: 52

Spectrum Group International, Inc.

Spectrum Group International (known as Greg Manning Auctions until September 2005, then as Escala Group until May 2009) is a consolidated global collectibles network, an auctioneer of stamps, coins, arms, armor and militaria, and other memorabilia. Spectrum Group is also a merchant/dealer of certain collectibles and trader of precious metals. Spectrum Group's trading operations consist of A-Mark Precious Metals, a precious metals trading company that is an official distributor for mints in Canada, South Africa and Australia and is an authorized purchaser for the United States Mint.

Federal Contract $: $ 231.9m

Total Number of Instances: 2

Total Misconduct dollar amount: $ 14.0m

Instances of Misconduct

1. Afinsa - SEC Investigation

Beginning in June 2003, Spectrum Group International (SGI) acted as the exclusive supplier of collectibles, mostly stamps, to Spanish collectibles company Afinsa Bienes Tangibles, S.A. In 2006, Spanish authorities began investigating an alleged criminal scheme by Afinsa and several officers and directors of SGI, including CEO Greg Manning and CFO Larry Crawford. The targets of the investigation were accused of money laundering, fraud and tax evasion relating to a stamp investment operation. In March 2009, the U.S. Securities and Exchange Commission reached a settlement with SGI (then known as Escala Group) resolving alleged securities laws violations connected with the company’s dealings with Afinsa. Under the terms of the settlement, SGI did not admit or deny the government’s allegations and consented to a permanent injunction against any future violations of the federal securities laws. The SEC did not impose any monetary penalties.... more»

2. Afinsa - Securities Class Action

Beginning in June 2003, Spectrum Group International acted as the exclusive supplier of collectibles, mostly stamps, to Spanish collectibles company and SGI majority shareholder Afinsa Bienes Tangibles, S.A. In 2006, Spanish authorities began investigating an alleged criminal scheme by Afinsa and several officers and directors of SGI, including CEO Greg Manning and CFO Larry Crawford. The targets of the investigation were accused of money laundering, fraud and tax evasion relating to a stamp investment operation. In December 2008, SGI (then known as Escala Group) settled a class action filed on behalf of shareholders who claimed they were harmed as a result of the Afinsa transactions. Under the terms of the agreement, SGI agreed to pay $6 million in cash and $8 million in stock.... more»