Brass Core Chips |
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What is the controversy over brass core chips?
Counterfeit Brass Core Chips, Information You Need To Know During 2001, members of the Board of the CC>CC were made aware of the production and existence of counterfeit brass core chips. The Board undertook an investigation. Jim Reilly, our Club Claims Director spent several months talking to members and gathering information. I urge you to read my President’s Letter in this issue for more about this matter. I want to answer some of what I expect will be frequently asked questions. What is a brass core chip? What specific chips have been counterfeited? Unfortunately, there may be other chips as well.
NOTE:
How are these chips counterfeited? How can I tell a real chip from a counterfeit? The edges, including the metal on a counterfeit are very smooth, with no machine marks. The counterfeits that we are aware of are made by hand and various grades of sandpaper are used to remove excess plastic, thereby smoothing both the plastic and the metal. Also, the chips will not have the injection marks normally noticeable on newly manufactured brass core chips. Are all brass core chips suspect? Keep in mind that there are legitimate chips of the identical denominations and colors from the same casinos as the counterfeits. These genuine chips should not be devalued due to the existence of counterfeits. Be wary of odd colored chips and chips in unused condition. It is also important to know whom you are dealing with so that you have recourse. Make a record of any chips that you buy and ask for a receipt, and, of course, buy from a CC>CC member who ascribes to our Code of Ethics. What can I do if I think I have a counterfeit chip? Brass Core Investigation Interim Report May 3, 2002 OVERVIEW During the 2001 Convention, based upon a conversation with a club member, the Board initiated an inquiry into the possibility of a misrepresented brass core chip sale. That is to say, chips sold as original in nature that were in fact non-genuine. This interim report will deal with the investigation of a complaint subsequently received from Dean Porter (R-2123) concerning Mel Jung (R-291) and sales made by him. Porter alleges that Jung sold him certain brass core chips that Jung knew were non-genuine without disclosing this fact to Mr. Porter. Jim Reilly (the then CC>CC Claims Director) undertook this investigation directly after our 2001 Convention in June, 2001. Reilly's report was sent to the Board of the CC>CC in early February, 2002. The Board, with Secretary Marty Kaplan taking the lead, followed up with some of the principals in the investigation, as was suggested in Jim Reilly’s report. This brass core investigation will continue and it is hoped that more members with information will step up and share that information so that the investigation may proceed. This investigation is not to be considered "closed". For the purposes of this interim report, all original references in this document will use the word non-genuine (short for non-genuine in origin) when referring to chips that may be altered, forged, reproduced, counterfeit, modified, repaired, etc. In this interim report you also will find that those interviewed have, on occasion, referred to the non-genuine chips in other terms. Where these individuals have been quoted their reference to the non-genuine chips has not been changed. We are using the word non-genuine because the various chips being referred to fall into several different categories. Some may be counterfeit, some altered, some repaired, some forged, and in some cases this is not readily discernable. Quoted material from other documents will be presented in an indented fashion for clarity. Where the names of dealers, collectors or members who are not relevant to the conclusions drawn in this particular interim report appear, those names have been replaced with non-descript references. In subsequent reports those references will be removed and the correct names inserted based upon the circumstances of that particular interim report.
Discussion of the Facts INTRODUCTION Dean Porter has made a complaint that Mel Jung sold him certain brass core chips that were non-genuine and did not disclose that information. The chips that Porter alleges are non-genuine are:
While Porter claims that Jung sold him five (5) non-genuine brass core chips without disclosure, this report will focus on the transaction of the pink $2.50 Harrah’s chip. It should be noted that this non-genuine chip was produced by David Whalen and acquired by Mel Jung from Whalen. The details of that transaction are presented in context later in this interim report. Both Jung and Porter agree that the pink $2.50 Harrah’s chip is non-genuine and that Jung sold the chip to Porter. Jung and Porter disagree about the disclosure at the time of the sale. Jung and David Whalen both agree that Jung acquired the "sale" chip from Whalen. But Jung and Whalen have very different versions of this transaction. David Whalen has provided statements to both Jim Reilly and Marty Kaplan that he has produced non-genuine brass core chips for Mel Jung using brass cores and brass core chips supplied by Mel. He estimates that he received 30 to 35 cores/chips from Mel and completed and returned 20-22. He stated that he produced chips for Mel from the Ranch House, a pink $2.50 Harrah’s, and other chips as well as repaired non-denomination chips from the Hard Rock Jim Reilly questioned Mel Jung regarding Whalen’s statements that chips were produced for Jung. Mel Jung denies that Whalen ever produced chips for him. Jung states that the only chip that he ever purchased from Whalen was the pink $2.50 Harrah’s. Dean Porter states that he purchased the pink $2.50 Harrah’s chip from Jung without Jung’s disclosure that it was non-genuine. While Jung states that he did disclose that the chip was non-genuine, there is no disagreement that this is the pink $2.50 Harrah’s chip produced by Whalen.
CONCLUSIONS David Whalen and Mel Jung disagreed completely about whether Whalen had ever produced non-genuine brass core chips for Mel Jung. David Whalen was able to give in depth accounts of his dealings with Jung. He was able to give quantities and types of chips, details of his attempts to collect for his work, information about how he sent and received both cores and chips including time frames and association to events. While there are some details that conflict in Whalen's separate accounts, related on different occasions, his testimony is credible. While the production of non-genuine brass core chips has caused havoc within the hobby, Whalen has been forthright; admitting to producing these chips and giving detailed descriptions. Jim Reilly spent many hours interviewing David Whalen in person, by telephone and by email and wrote this in his report:
Jim Reilly’s conclusion was that Whalen was truthful which in turn means that Mel Jung was not honest in his account of dealings with Whalen.
Jim Reilly summarized all their dealings as follows: 1. David says that he produced the chip at Mel's specific request, from another chip provided to him by Mel. Mel says that he had nothing to do with the production of the chip and purchased it from David for $200-400 "to get this aberration off the market". The long and the short of it is, someone is lying. To believe Mel's version of these events, it is necessary to believe that both David and Dean are lying. It is with considerable regret that I have reached the conclusion that David and Dean are not lying. "All the brass core chips I bought with one exception were represented as the real deal. The main reason I'm hesitant is if the club doesn't go thru with this it leaves me out on the limb. Believe me the sellers are old timers who have been there a long time. ... I've mostly enjoyed my association with the club and hate to lose it." The sale of the chip under these conditions was a violation of paragraph 6 of the CC>CC Code of Ethics, which requires members: 6. Not to sell, exhibit, produce nor advertise non-genuines, copies, reproductions or restrikes of any item unless their nature is clearly indicated as such.
As indicated above, I think it would be helpful to have more information about the dealings between Mel and Dean, including the other suspected "remanufactured" chips, before concluding this matter and making a final determination as to what action should be taken by the board. A club member came forward after Jim Reilly’s report had been submitted to the Board. This member, referred to as Confidential Club Member, (who wishes to remain anonymous, but whose identity is known to both Jim Reilly and Nate Pincus) has provided corroborating information that substantiates Dave Whalen’s version.
This additional information does not change my opinion regarding the roles of David Whalen and Mel Jung in this matter. It does, however, reinforce the conclusion stated in Report 2002-01c regarding Mel's conduct: "In combination, these circumstances compel the conclusion that Mel participated in the production of these 'remanufactured' chips (which in and of itself would not necessarily be an ethical problem) and that he knowingly sold one of them to Dean Porter while representing it as a legitimate chip." To conclude otherwise would now require finding that either individually or in collusion, David Whalen, Dean Porter and the Confidential Club Member are all lying about a matter which they have to know would create the possibility of significant repercussions for a long-term and well-known member of the club. I have still found no basis upon which to believe that they are doing so. The Board of the CC>CC continued the investigation after Reilly submitted his report. David Whalen was interviewed extensively on several occasions. He provided more particulars that corroborated his earlier testimony. Dean Porter also provided additional information, including a formal complaint, specifying details on the specific chips that he alleges were non-genuine.
BOARD's DECISION The Board of the CC>CC unanimously finds as follows. Based on the information contained in this report and the accompanying detailed reports of Jim Reilly, CC>CC Claims Director and other documentation gathered by the Board and included as exhibits, we find as follows: 1) That Mel Jung sold to Dean Porter a $2.50 pink Harrah’s chip without proper disclosure that it was a non-genuine chip. This is a violation of paragraphs 2, 3, 6 and 7 of the CC>CC Code of Ethics, which requires members:
CoE #6- Not to sell, exhibit, produce nor advertise non-genuines, copies, reproductions or restrikes of any item unless their nature is clearly indicated as such. CoE #7- To represent casino collectibles as genuine only when to the best of my knowledge and belief, such items are in fact authentic, and when no significant question of their authenticity has been raised. 2) That Mel Jung was not truthful in the information that he provided to the CC>CC Claims Director in regards to the inquiry into the production and sale of brass core chips and therefore impeded such investigation. This is a violation of paragraphs 2, 3, and 13 of the CC>CC Code of Ethics, which requires members: CoE #2- To conduct myself so as to bring no discredit to the Club or to impair the prestige of the Club or its members. CoE #13- To cooperate with the officers of the Club in investigating and resolving problems which may arise, and complaints which may be made, and to provide such information to such officers as may reasonably be requested. Based on these violations of the CC>CC Code of Ethics, the Board of Directors of the Casino Chips and Gaming Tokens Collectors Club has voted unanimously to expel Mel Jung from the CC>CC and bar him from all club activities. CODE OF ETHICS - CLARIFICATION In regard to Code of Ethics #6 6. Not to sell, exhibit, produce nor advertise counterfeits, copies, reproductions or restrikes of any item unless their nature is clearly indicated as such. Going forward, the Board will continue to interpret this provision of the Code of Ethics to mean that the chip/token/silver strike must be marked on its surface. The Board will also be referring these definitions and marking requirements to the Club's Condition Description and Standard Committee for recommendations.
NOTE The remainder of this report will detail the statements made by those involved.
DAVID WHALEN The following is David Whalen’s description of his dealings with Mel Jung as written to Marty Kaplan. Mel Jung 30 -35 chips changed hands (I ended up with a few) Altogether we had three mailings take place + a few passed in person at shows. Shipment A 12 slugs misc. I was immediately disenchanted. Our negotiated agreement was for any chips he sent me, I was to fix and return half and keep the other half for my own use. His instructions for this shipment of twelve (12) chips, how he wanted his seven (7) and which five (5) I could keep. I knew right away he'd play a lot of hooky during 2nd or 3rd grade math. Besides, the slugs he intended for me were mostly Reliable Inc. proto-types, that with $20 - 30 labor and material I could bring their market value up to $10 - 12. I've never worked on them. Still have them. You don't suppose we could dust them to see if we can find some of his DNA on them? The seven chips I finished for him (reluctantly) were probably five Ranch House low denomination and a couple higher denomination slugs from somewhere else. You might want to phone me about the white chips in this batch. Shipment B 11-12 Hard Rock non-denomination These he sent me did not need to be re-encapsulated. All had been glued to something and had surplus glue and minor surface damage as a result of being glued. These required sanding and polishing. He told me to keep "one" of the chips for my troubles. Random work for Mel (not mailed) 3 -4 Only a few chips, not more that four were transacted in this manner. These were the kind that were handed to me at shows with verbal instructions. Of noteworthy significance would be what transpired at Jim Mundings Crystal Park show. I had made myself a $2.50 Harrah's pink 16 insert chip. It was real nice and I was showing it off. Mel made me an offer of $200. I declined, told him it was for my personal collection. The second day of the show he approached me about making him one. I said sure but I didn't have any slugs. Which in this case would have been a yellow $2.50 16 insert drill canceled. He looked but said he didn't have any with him. Then turned to the dealer at an adjacent table and in front of another dealer (+ God, Allah, Buddha & the rest) and asked if he could borrow one. End of story.
Shipment C 7 - 8 slugs Misc. I remember two chips specifically in this shipment to be 50 cent Ranch House. These I coveted very much because I didn't have any in my personal collection. I never did the requested work on these slugs. I returned the slugs unfinished at Rene's first Palace Station show. That's when all the false accusations started.
Bonus disclosure Confidential Club Member was with me when Mel directed me to another dealer's table to see a specific chip and said that was the shade of pink he wanted on his chip. The Confidential Club Member says he doesn't remember which chip, but did know the purpose of the trip. The following is an excerpt from Jim Reilly’s report: David has told me that he produced specific chips as follows: Three pink $2.50 Harrah's chips (he does not recall exactly when these were produced, except that all were made after the last chip show by Bill Akeman at Arizona Charlie's). He had a real one to use as a guide, made three copies. David kept one copy, Mel got one copy and the other two went to Dealer B and Dealer A (David is not sure which got the real one and which the final copy). Dealer A sold his to Member A in what David understood to be an $800 deal ($450 in cash plus chips). Thus, there is a 50-50 chance Member A's chip is a copy. The following is an excerpt from Jim Reilly’s report: David advised me that he has produced approximately 80-90 "remanufactured" brass core chips. He said that approximately 35-40 of these chips were produced specifically for Mel and recalls orders of 11, 12 and 15 chips. Some of these chips were produced from damaged originals and some from blank brass cores provided by Mel to David. Among these chips is the pink Harrah's $2.50 brass core which is the specific subject of this inquiry and which is discussed at length later in this report.
[JTR Note: David subsequently advised me, in response to my follow-up request, that he could not find the instructions.] "Super Bowl weekend at the Palace Station I confronted Mel about the money he owed me. He asked how much it was and I told him again $185. He handed me a chip that was worth about $50 that he had marked $125 and told me I could keep the difference ( ? ? ? ). Not wanting to cause a public scene, I walked away. Later the confrontation continued at Armin's table. Armin asked him why didn't he just pay the man? He reached in his pocket and gave me $180. The following morning I returned all of Mel's unworked on slugs. [JTR note: David told me in July that he actually produced three of the pink $2.50 Harrah's brass cores, one of which he retained himself, one was given to Jim Reilly’s evaluation of Whalen and information supplied by Whalen: Several members other than Mel Jung identified David as the producer of "remanufactured" brass core chips (inasmuch as David admitted doing so, I deemed it unnecessary to identify the other members). None of them, not even Mel, whose comments were otherwise most critical of David's actions, claimed or even suggested that David had misrepresented the nature of his chips. The one chip which Mel agrees he obtained from David was, by Mel's account, represented as a "damaged pink" that had been "repaired".
MEL JUNG This is an excerpt from Jim Reilly's report: Club member Mel Jung has been identified as the seller to Dean Porter of a pink Harrah's $2.50 brass core chip which is known to be one of the "remanufactured" chips produced by David Whalen (and addressed in Report 2002-01b).
This is an excerpt from Jim Reilly’s report:
"Dave Whalen has never 'produced' chips for me and I have never had any brass core chips 'produced' to duplicate original chips."
On October 12, 2001, he emailed me again (in part) as follows: "You may recall that I introduced you to this matter of Dave Whalen creating brass core remakes and have encouraged you to investigate the matter. It is clear that he admits to the activity which has created chaos among the chipping community. I recommend that he stop this activity and be reprimanded. Additionally he should be removed from the membership and banned from all shows and activities." [JTR Note: Although I did speak with him about "counterfeit" brass cores at the convention, it was not Mel who first raised the issue with me and I initiated our first conversation on the subject. He did encourage an investigation into the matter and has been cooperative throughout my inquiry.] As noted above, David Whalen told me that he produced three pink $2.50 Harrah's chips (he does not recall exactly when these were produced, except that all were made after the last chip show by Bill Akeman at Arizona Charlie's). He had a real one to use as a guide and made three copies. One of these was made from the $2.50 chip Mel obtained from Armin, from which David removed the yellow plastic and replaced it with pink.
[JTR Note: This question was actually directed at chips other than the pink $2.50, but Mel answered it by referring to that chip.] Mel: "I clearly warned him that the $2.50 was not a Reliable or Royce 600 product and that I had no knowledge of any originals in this denomination and color. He did not seem to care and 'Had to have it'." In a subsequent email, Mel said: After taking more time to review your inquiry regarding Dean Porter and the pink $2.50 chip, this situation could be resolved by my sending you a check to Porter for $500 and the return of the chip from Dean. This offer is not a contradiction to my position that I have always told Dean, to the best of my knowledge, the conditions of brass chips he purchased. I have also reiterated my policy with him that I would buy back any chip he did not feel comfortable with and after numerous transactions, this is the first time he has indicated dissatisfaction. DEAN PORTER Dean Porter reluctantly filed his complaint. He was concerned that since the dealers he was accusing were prominent and long-time members, no action would be taken and he would be ostracized. After assurances by the Board and direct contact with Marty Kaplan, Porter sent an email on April 15, 2002, reproduced as follows: This non-genuine brass core chip problem has given me a lot of sleepless nights. The dealers who sold me the non-genuine, fake, altered or whatever words you want to call them are selling these chips as original casino chips along with some great stories to make them very valuable. These are excerpts from Jim Reilly’s report: On June 14, 2001, I received the following further response from Dean: "I got mine from Mel Jung as an original and paid over $500 for it. Dealer A also had one (original fake) at the convention which he showed me and I told him it was a fake and practically called me a liar. Dean" "CONFIDENTIAL CLUB MEMBER" Information received from a club member who has requested his/her name be kept confidential. This is the same person as the "Confidential Club Member" who is cited in David Whalen’s email to Marty Kaplan. These are excerpts from Jim Reilly’s supplemental report. 1. In response to a call by me to him yesterday, I received a telephone call today from a member of the club who provided the information contained in this report. He provided this information on the condition that his name be kept confidential, a condition to which I agreed. This member did indicate, however, that he would be willing to confirm this information directly to the board so long as the board also agreed to keep his name confidential and not include it in any report regarding this inquiry which is made public. 2. This information relates to the production by David Whalen of a pink $2.50 Harrah's chip at the request of Mel Jung, as previously discussed. Complaint by
Dean Porter against Walt Gonski Dated This report will present the results of the investigation into an allegation made by Dean Porter against Walt Gonski. In a complaint filed with the CC>CC by Dean Porter, he alleges that Walt Gonski sold to him non-genuine brass core chips without disclosing all information known about their true nature and/or origin at the time of sale. Specifically, Porter states that Gonski sold him (See Exhibit A): $1 white Ranch House $5 blue Ranch House $5 dark red Ranch House Following are a series of questions that were asked of Gonski along with his answers. 1) Did David Whalen repair and/or manufacture any chips for you? If so, what chips? Please provide a complete list. Answer: No chip ever sold to Dean Porter came from David Whalen. 2) Did you sell any brass core chips to Dean Porter? Answer: YesIf so, what chips? Please provide a complete list. Answer: 50 cent Green Ranch House $5 Red Ranch House $25 Black Ranch House $25 White Ranch House – 2001 convention the same day he
bought the chip he brought it back to me and I gave him a complete refund. None
of these chips came from David Whalen. They came directly from the former Ranch
House owners or from my personal collection. 3) Did you sell Dean Porter any of the allegedly non-genuine chips that are listed above in paragraph "A)"? Answer: NoIf so, which chips? Please provide a complete list. Answer: N/AGonski included the following statement with his response to the specific questions: Regarding the 3 chips I did sell Mr. Porter, if he was not
satisfied with anything I sold him why didn’t he come back to me and ask for a
refund? Mr. Porter has obviously bought many fake brass
cores from number of people not “ME”. At this point I don’t believe he knows
“what came from who”. Mr. Gonski was
subsequently contacted to clarify his response to Question #1. His response is
as follows: Regarding
question #1. David Whalen never manufactured any chips On October 23, 2002 Mr. Gonski was again contacted. He provided the
answers to the following questions. Question #1
You previously stated that you sold the following three chips to Dean Porter: 50 cent Green Ranch House $5 Red Ranch House $25 Black Ranch House Where did you acquire these chips? Answer: I acquired these chips directly from the former Ranch
House owner's family, in Wells, NV. Question #2
Other than the three chips listed above, have you sold Dean Porter any other casino chip(s) including any prototypes, repaired, modified genuine brass core or any other type of chip?Answer: As I have previously stated. During the 2001 convention I sold a $25 white Ranch House chip to Porter. He brought it back to me the same day, and I gave him a complete refund. Question
#3 You
previously stated “David Whalen never manufactured any chips What
was the nature of the repairs to these chips? What was done to them? Was the
plastic chip material removed and replaced by new material? Please give a
detailed description of the repairs. Answer: Most of the chips David Whalen
repaired for me were fire damaged. I believe 1 was warped which he straightened
out. Question
#4 You
further stated “None of these chips were sold to Dean Porter or to anyone
else.” Does
this mean that all of these chips are still in your possession? If so, would
you be willing to present them for verification? Answer: Yes, to the best of my knowledge
they are still in my possession. And yes, I am willing to present them for
verification. Question #5
David Whalen has stated that he made a $1 white Ranch House chip for Mel Jung. He further stated that Mel sold the chip at a convention and that you know who bought it. Do you have any knowledge of this $1 white Ranch House chip? If so, what do you know about it? Who bought it? Where is it now? Answer: I have no knowledge of a $1 white Ranch House chip that
Mel sold at the convention. Nor do I have any info as to who bought it, or
where it is or anything else relating to this transaction. On November 1, 2002, Walt Gonski was asked the following question. Dean Porter issued a check in the amount of $600 to you. The
check was dated January 7, 2001 and was issued by Dean's Firearm's
Ltd. What was this payment for? Answer: This is an easy question to answer. The $600 check
he wrote to me was for payment of the 3 chips I sold him. They are the same 3
chips I have previously mentioned in my reply to your questions. Once again the
3 chips I sold to Porter : Follow up to Gonski’s inquiry regarding listings in The Chip Rack Walt Gonski stated as part of his response to the request for
clarification on Question #1 on the original request for information as
follows: FYI.... Look
at the 1996, 1997,1998 , etc., issues of Chip Rack. And look Allan Myers, one of
the authors of The Chip Rack was asked about the odd chips listed in The Chip
Rack. His response is as follows: There are two off color PMSC Ranch House chips that we started listing early. One is a Green $5 belonging to Dale Seymour. Barry may still have it. It was made before 1994. The Yellow 50c first appeared in Herz' 1997 Auction #19. Howdy can tell you who purchased the chip. Both of these predate Whalen. Information obtained from David Whalen: Jim Reilly’s brass core report submitted to the Board of Directors on
February 6, 2002 contained three specific references to Walt Gonski and
specific brass core chips produced by David Whalen. Quoted from the report as
follows. First reference: David estimated that he made these chips for dealers as follows: Walt Gonski – more than
7, perhaps up to 15 Second reference: Crystal Bay Orange $5 for Walt Gonski (repair to match original color) Third reference: 7-15 Ranch House chips in various denominations (David can’t remember
them) which were fire damaged and David replaced the original color plastic for
Walt Gonski. One of these ($5 chip) was apparently sold by Walt at the
convention for $100 and questioned after Mel told the buyer that it was a
counterfeit. Not known to me if the buyer actually returned the chip for a
refund or not. Marty Kaplan subsequently questioned David Whalen regarding the
specific chips he produced. He stated that he produced the following for Walt
Gonski. First reference: Walt Gonski - $5 Crystal Bay Club (burnt orange) Second reference: Walt Gonski 15-16 chips (maybe as many as 18) All were from the Ranch House
and had fire damage Most
of Walt’s chips were done on a “fix one get one” basis. Some were worked on in
exchange for other collectible chips. This
means that he should have gotten a little more than half back. Not true! I
still believe that I have a couple of Walt’s slugs in inventory. This is
because we hadn’t decided what to do with them. I
still have most of the slugs that I received as compensation from Walt. I’ve
fixed a couple and they are now in my personal collection. On October 23, 2002, David Whalen was again contacted
and subsequently answered the following questions. Question #1 You have stated that you did work on brass core chips for Walt Gonski. What was the nature of the work that you performed? Was the plastic chip material removed and replaced by new material? Please give a detailed description of the repairs. Answer: Walt gave me fourteen Ranch House chips. Half of them were for me to keep as compensation for working on his half. I still have two of his chips in a box of his consignment inventory. I did not do a $1 white Ranch House for Walt. I was able to repair a few of his chips that were heat warped and had surface scratches by sanding and polishing them. They obviously ended up the original color. They came out real shinny and a few thousandths thinner. I did change the plastic on two $25 Ranch House chips for Walt. Question #2 Dean Porter has stated that Walt Gonski sold him the following chips: $1 white Ranch House $5 blue Ranch House $5 dark red Ranch House Did you produce or repair any of these chips for Walt Gonski? If so, which one(s)? And what specifically did you do? Answer: David Whalen did not respond to this specific
question when asked. In all of his responses to previous questions he never
mentioned making any of these chips for Walt Gonski, Question #3 Not related to this investigation. Question #4 You stated to Jim Reilly that you produced and sold a $1 white Ranch House chip to Mel Jung. Is this the only $1 white Ranch House chip that you produced? If not, who else did you produce $1 white Ranch House chip(s) for? Answer: I believe that I made multiple $1 white Ranch House for Mel, but I wouldn't swear to it under oath. I don't remember making any for anyone else. Walt gave me four $1 Ranch
House. Two were sold on eBay in the original condition (we split the
$$$) and I still have the other two. This is why I was puzzled
when Gene showed me the $1 whites he got from Dean. Of course, that
doesn't mean Walt couldn't have gotten one in those swap sessions. Information obtained from Dean Porter: On May 28, 2002, Dean Porter emailed the following: I found two more while getting ready for the Convention. Two white Ranch House, a $1 and a $5. One from Mel and one from Walt Gonski. Dean Porter was emailed as follows: Do you have any physical evidence of any of the chips that
you bought from Gonski or Akeman such as sales receipts, your own notations or
anything else that might show that you purchased the chips from them? Do you
have anything that shows the date such as a notation or receipt? Please let me
know. Dean Porter sent the copies of his records. They are included as Exhibit B. The cards indicate what he “paid, from whom and what year.” He stated in another email as follows: I
make those orange tags when I buy them, so I know what I paid, who it came from
(the initials) and the year I bought it. I hope that helps, Dean. (WG.00 Dean also included a copy of a check in the amount of $600 made payable to Walt Gonski. This is included as Exhibit C. Dean was questioned about the $600 check. His answer was as follows: Walt Gonski also sold me a $5. white counterfeit that I didn't have with the others and hadn't told you about before. The $1. and $5 whites were purchased at the same time. That's what the $600 check is for. On October 23, 2002, Dean Porter was contacted and
subsequently answered the following questions: Question #1Walt Gonski stated that he sold you the following chips: 50 cent Green Ranch House $5 Red Ranch House $25 Black Ranch House Did he sell you these chips? If so, do you have any records of your acquisition such as the square orange cards that you keep with your chips? If he did not sell you these chips and you acquired them from someone else, do you have these chips in your collection? If so, do you have any records of your acquisition such as the square orange cards that you keep with your chips? Would you please send me scans or copies of the chips and the cards and any other records that you have regarding these chips. Answer: In my collection, the Ranch House 50c's came from Mel Jung and Armand Pfaender. The regular $5 red came from Mel Jung. The $25 black came from Armand Pfaender. The above were purchased in 1995 when I started collecting brasscores, and are OK. Dean sent me his record cards and they are included as Exhibit D. Question #2 You stated that Walt Gonski sold you the following chips: $1 white Ranch House $5 blue Ranch House $5 dark red Ranch House Did you buy all three at the same time? Did you ever request a refund? If a full refund was offered, would you accept it? Answer: Walt Gonski also sold me a $5. white counterfeit
that I didn't have with the others and hadn't told you about before. The $1.
and $5 whites were purchased at the same time. That's what the $600 check is
for. I asked for a refund on another counterfeit Walt
sold me at the 2001 convention. He refused to give me a refund until I
threatened to turn him in to the BOD. He then gave me a refund I think it
was $350 in cash. I had purchased it for cash earlier on that first day of that
convention. I've never asked for a refund on the others as thay are in my collection and will be labeled as counterfeits from Walt Gonski. (or Mel Jung or Bill) Question #3 You submitted a copy of a check in the amount of $600 to the Board. The check was number 22312, dated January 7, 2001 and was made payable to Walt Gonski. What was this payment for? Please give details. Answer: Answer
is included in answer to Question #2 above. Follow up questions were asked and answered as
follows: 1) Please send me the cards and any records of your purchase of these three chips:
50 cent green Ranch House $5 red Ranch House $25 black Ranch House
Records were sent and are included as Exhibit D.
2) How did you pay for the $5 blue Ranch House and the $5 dark red Ranch House chips that you say you bought from Walt Gonski? Were they acquired at the same time? Answer: I don't remember how I paid for all the chips, but have no record of any other checks written to Walter Gonski. I do recall paying cash for the dark red $5. Ranch House.
3) You stated that you never asked for a refund on any chips from Walt Gonski except the $25 white Ranch House at the convention. Would you accept a refund for the other non-genuine chips if it was offered? Answer: I never asked for a refund from Walt Gonski after the convention because I'm putting them into my collection as fakes, and naming the people that sold them to me.
Physical examination of the chips named in the
complaint Two members of the Board of Directors examined the chips involved in this matter. David Whalen inspected the chips. He feels that they are non-genuine but is not able to determine if he worked on any of them. Discussion of the InformationDean Porter has alleged that Walt Gonski sold him non-genuine brass core chips without disclosing all the information known about their true nature and/or origin at the time of sale. Dean Porter has stated that Walt Gonski sold him the three specific chips that are the basis for the complaint. Walt Gonski has stated that he did not sell Dean Porter those specific chips. Gonski says that he sold Porter three other chips. Porter says that he did not obtain those chips from Gonski and that they were purchased from others. Attempts were made to find corroborating evidence and information to substantiate statements made and evidence provided by Porter and Gonski. Porter has stated that he keeps track of his chip acquisitions by recording information on a card that he keeps with the chip. Through use of a simple code, he records the name of the person from whom he acquired the chip and the date of acquisition. His written records specify that he obtained the chips in question from Walt Gonski in 2000. (See Exhibit B) Porter made a payment to Gonski by check on January 6, 2001 in the amount of $600.00. (See Exhibit C) Porter states that this was for counterfeit $1 and $5 white Ranch house chips. Regarding the $5 white Ranch House chip that is not included in the original complaint, he stated “I didn't have with the others and hadn't told you about before.” Porter’s record card for the $1 white Ranch House chip indicates that he obtained the chip in 2000. The check that he states was payment for this chip is dated January 6, 2001. Gonski states that the check for $600.00 was payment for the three Ranch House chips that he sold to Porter. The sum of the prices are in line with The Chip Rack values but is approximately 60% of Campiglia and Wells (2nd Edition). David Whalen operates a business in
which he repairs and reproduces chips. He is able to repair brass core chips by
fixing the existing plastic and by replacing the plastic with new material. Whalen examined the chips in question and
feels that all are non-genuine but is not sure if he worked on them. Whalen has been asked several times about the chips he worked on for Gonski. His answers varied from as few as seven chips to as many as eighteen. Part of the confusion may be that the work was done on a “fix one, get one” basis. Whalen stated that “I did not do a white Ranch house for Walt.” He did state that he believes that he made multiple $1 white Ranch House chips for Mel Jung, but said “I wouldn’t swear to it under oath.” There is no evidence that David Whalen produced or worked on any of the chips that Dean Porter alleges in his complaint. While Dean Porter has documentation showing information regarding his acquisitions, this information is unsubstantiated by any collaborating evidence. Over a year after the investigation was initiated, Porter subsequently disclosed that there was another non-genuine chip, a $5 white Ranch House that he states was obtained from Gonski. This disclosure, coming so far after the start of the investigation casts some doubt on the manner in which Porter maintained his records. Other factors must also be considered. Prototypes have always been a part of our hobby. We know that chip manufacturers made prototypes of chips to show to casinos. These may have included odd colored chips that may not have been produced by the regular manufacturing process. Prototype chips were made in small quantity – perhaps as few as a single chip – and were many times made in a rudimentary fashion. Some of the chips in question may be prototypes. Certainly, any chip that is odd colored would be suspect. There are Ranch House and other odd colored chips listed in The Chip Rack that date back prior to David Whalen producing chips. It has been alleged that others have produced brass core chips in the same manner as Whalen in the past but we have not been offered any specific evidence or proof. We do know that executives/owners at casinos have brought prototypes into the hobby. It is not possible to determine if this has any bearing on this specific complaint. But we have to consider that the chips that Porter alleges are non-genuine may be prototypes and that any seller may not have been aware of their true nature. It is generally known that Dean Porter has perhaps the finest brass core collection in the hobby. He is certainly recognized as one of the most knowledgeable in this area of collecting. This does not absolve anyone who did not fully disclose the nature of any chips. Due to Porter’s expertise, there is expectation that he would have recognized the likelihood that chips that were off colored and chips that did not match up to known standards might not be genuine. Porter was asked if he would accept a refund. He replied that “I'm putting them into my collection as fakes, and naming the people that sold them to me.” Porter wants to keep these chips in his collection. This indicates that they have a value, perhaps as much as he paid for them. Porter’s statement that he wants to keep the chips limits the options for resolving this matter since it would not be feasible to order that the chips be returned with and a full refund issued. While the complaint alleges serious misconduct by Gonski, it seems to be mitigated somewhat by Porter’s refusal to accept a refund. Conclusion of the Board of DirectorsThroughout the course of this investigation, much information has been obtained from the parties involved. There has been an ongoing effort to corroborate and substantiate statements made by the parties involved. Statements made by Dean Porter and Walt Gonski directly contradict each other. Generally in our hobby, there is little documentation of transactions between club members. In attempting to resolve this matter, the lack of documentation has been the biggest deterrent in determining the veracity of the statements made by the parties. None of the information provided has been substantiated by another person or by irrefutable evidence. Dean Porter has presented the only written evidence – his record cards that he keeps with his chips and a copy of a check made payable to Walt Gonski. The cards represent compelling evidence since they are his source documents and according to his testimony, prepared at the time a chip is obtained. The other documentation that was provided was the $600 check. Porter and Gonski each had a different explanation for this payment. David Whalen has given information to those investigating this matter on several occasions regarding the chips he worked on for Gonski. At no time has he stated that he made any of the chips for Gonski that are the subject of Porter’s complaint. Given all the information gathered in the course of this investigation and the lack of any substantial corroborating evidence, the Board of Directors of the CC & GTCC finds that there is not enough evidence to take any action in this matter. The Board of Directors found as follows by a vote of 5-0: In the matter of the complaint brought by Dean Porter against Walt Gonski, Porter alleged that Gonski sold him brass core casino chips without disclosing all information known about their true nature and/or origin. After investigating this matter, the Board of Directors of the CC>CC finds that there was no evidence of a violation of the Code of Ethics of the CC>CC. The portion of Dean Porter’s complaint concerning Walt Gonski is closed. Complaint by Dean Porter against Bill
Akeman Dated 12/27/02 This report will present the results of the investigation
into an allegation made by Dean Porter against Bill Akeman. In a complaint filed with the CC>CC, Dean Porter alleged that Bill Akeman sold to him non-genuine brass core chips without disclosing all information known about their true nature and/or origin at the time of sale. The chips that Porter alleges were sold to him are as follows: $1 green Harrah’s $1 marbleized Harrah’s $25 red Ranch House In order to make a determination in this matter, information was gathered from Bill Akeman, Dean Porter, David Whalen and two other club members. This information was obtained in telephone conversations with Bill Akeman. Regarding the two $1 Harrah’s chips, Akeman stated that they were obtained from a woman who brought several boxes of Harrah’s items that included chips to him at the Gambler’s General Store (GGS) in 2000. At the time, Bill worked in the GGS selling casino chips. Bill purchased items from this woman on several separate occasions. Akeman stated that Janice O’Neal, who worked for him at the GGS was present at the time the woman brought the chips into the store. Akeman also stated that he thought David Whalen was present at that time. Included in the items purchased
from the woman were three sets of $1 Harrah’s chips – a $1 green brass core and
a $1 marbleized brass core chip. Bill kept one set for himself and sold sets to
another club member and Dean Porter. Bill says that he explained the
circumstances in which he obtained these chips to both buyers. Regarding the $25 red Ranch
House chip, Akeman stated that he does not recall ever having this chip. Bill stated that he was not
fully aware of all the chips he had for sale after his purchase of Jerry Wall’s
inventory. He allowed customers to go through binders of chips that had been
acquired from Wall before he had inventoried them. And that there were so many
chips that he just doesn’t recall all of them. Bill stated that he gave David
Whalen a few $100 Reno Ramada chips that had cracks and that Whalen was able to
repair them. These are the only chips that Whalen worked on for him. He has no
recollection of any other chips being worked on by David Whalen. Akeman also stated that he
offered Dean a refund for the Harrah’s chips. Dean Porter was asked about the transaction in which he obtained the two $1 Harrah’s chips. Question: Dean, When you
bought the two $1 green Harrah's brass core chips from Bill, did he tell you
how he obtained them? What did he tell you about these chips? You had to know
that they were not actual chips that were played on the tables. Answer: Akeman
told me a lady came into his store and told him that she had worked at the
casino for a long time, and that she had those chips for a long time.
When I saw them I knew they had never been in play, just like the other
off-colored chips I bought from Gonski and Jung. I thought they were
manufacturers samples at first, then later found out that Reliable had never
made any marbleized chips and that Royce had never made any real brass
chips. I've also been told that Dave Whalen was present when that
transaction took place. Akeman swore to me that those were real. Dave Whalen
told me he made a lot of chips for Akeman, but not those green ones. I believe
he made the red $25. - Dean Janice O’Neal was
asked about Akeman’s acquisition of the two $1 Harrah’s chips. Her response was
as follows: It is correct that Bill got the Harrah's material when we were at the
store. And, yes, I was present the day she brought them in. This
woman came into the store and said she had worked at Harrah's for many years. Sincerely, Janice O'Neal Jim Kruse purchased the other set of $1 Harrah’s chips and was asked about the circumstances of that transaction with Bill Akeman. His statement is as follows: He stated that he had purchased the same set of two $1 Harrah’s chips from Akeman, and that he was told by Akeman that the chips were obtained from a woman who had worked at Harrah’s who brought in boxes of Harrah’s items to his store. During the course of
the investigation (during April, 2002), David Whalen was questioned about the
work that he performed for Bill Akeman. He stated as follows: Bill Akeman - 4 chips My request. I asked Bill if I
could experiment with them? He said OK, they weren't much
value otherwise. (2) Reno Ramada $100 white These were not re-encapsulated,
Just polished. The CasinoChipGallery had nearly
a full box they purchased in the J Wall inventory with hairline cracks in the
majority. Two were given to me to experiment with. Bill elected not to tamper with
the rest.(came out pretty nice) (2) Ranch House $25 black (fire
damage) One had minor damage, which was
repaired with black epoxy mender. The other had to be peeled and
the entire plastic replaced. I figured since it was worthless I would have a
little fun with Bill and make it green. There was no chip listed in the Chip
Rack that color. When Bill saw it he said it was "scary", that he
would not sell it, just sit on it for a while. Maybe even destroy it. I think
that as of a few month ago he still had it. Whalen was asked
specifically about the $1 Harrah’s chips. He responded as follows: Bill showed
them to me when I was working with him at the chipgallery. I was there the
day he bought them from a lady who claimed her ex-husband worked at
Harrah's. I didn't pay that much attention to them.
Later, Dean showed them to me at the Fiesta show this year. That
time I believe I detected what could have been injection mold marks on the
edge. That would mean they were machine made. The machine that shoots the plastic chips does not exclusively
make chips. The same machine can make jar lids, knobs, electric
outlet covers etc. The only thing that is changed to make different
products is the molds. These are produced by a Tool & Die
maker. The mold to put plastic on a brass slug would be very
simple. Just an aluminum plate with an 1 1/2" hole 1/8" deep,
an injection passage and a vent hole. There are probably tens of thousands of these
machines throughout the industrialized world. Bill bought more than one set of these from the lady. I believe
someone else has another set. Bill also told me he offered to refund Dean
his money.
Dean Porter has presented his record cards that indicate that the chips were purchased from Bill Akeman in 2000. Discussion of the InformationRegarding the two $1 Harrah’s chips, there is no dispute as to the basic circumstances of the sale and purchase. Two individuals witnessed the purchase by Bill Akeman of the chips from a woman who had a long-term connection to Harrah’s. Bill explained the details of the acquisition to both Dean and to the buyer of the other set of chips. At the time of the transaction, Dean felt that they were manufacturer’s samples. There is no evidence that suggests that Bill had any other information about these chips. Regarding the $25 red Ranch House chip, Porter has provided his record card as evidence that he purchased the chip from Akeman. Akeman does not recall ever owning that chip but may have as part of the inventory that he purchased from Jerry Wall. Conclusion of the
Board of Directors The evidence is clear that Bill Akeman obtained the $1 Harrah’s chips from an unrelated party and had no knowledge of their nature or origin beyond what he was told by the seller. He related the circumstances under which he acquired the chips to Dean Porter at the time he sold the chips to Porter. All the information known by Bill Akeman was related to Dean Porter at the time of the transaction. Based on all the information gathered by the Board of Directors, it has been decided that there was no violation of the Code of Ethics of the CC>CC in the transaction in which Dean Porter obtained the two $1 green Harrah’s chips from Bill Akeman. Dean Porter has presented written evidence to substantiate his claim that he obtained the $25 red Ranch House chip from Bill Akeman. Bill Akeman does not recall ever having this chip and does not believe that he sold the chip to Porter. According to his account, if he did sell the chip to Porter, he did so without any knowledge of the origin or nature of the chip. The only source of non-genuine brass core chips that we are aware of is David Whalen. There is no evidence that Whalen ever produced a $25 red Ranch House chip for Bill Akeman or for anyone else. There is conflicting information regarding this transaction and there is no collaborating evidence to support or contradict either party’s testimony. Based on all the information gathered by the Board of Directors, it has been decided that there was no evidence of a violation of the Code of Ethics of the CC>CC in the transaction in which Dean Porter alleges that he obtained a $25 red Ranch House chip from Bill Akeman. The Board of Directors found as follows by a vote of 5-0. In the matter of the complaint brought by Dean Porter
against Bill Akeman, Porter alleged that Akeman sold him brass core casino
chips without disclosing all information The portion of Dean Porter’s complaint concerning Bill Akeman is closed. |