(IRVINE, Calif., March 13, 2012) Spectrum Group International, Inc. (SGI or the Company) (SPGZ.PK), the parent company of Spectrum Wine Auctions LLC, commented today on the criminal charges brought last week against Rudy Kurniawan, a high-profile member of the wine industry who has been the subject of accusations and litigation concerning the attempted sale of fraudulent, high-end wines.
Greg Roberts, president and CEO of SGI, stated, “We have reviewed the press reports and the criminal complaint filed against Mr. Kurniawan. Based on that review, we understand that one of the allegations made is that Mr. Kurniawan unlawfully and secretly attempted to sell counterfeit wine at our London auction, which took place in early February, through a nominee.”
“Shortly before the auction, credible concerns were raised that the lots in question may not be genuine. We then removed these lots from the sale in order to conduct further due diligence and research certain label discrepancies,” Mr. Roberts continued.
Mr. Roberts concluded, “There has been no allegation of wrongdoing on the part of Spectrum Wine. We have cooperated fully with all requests for information from governmental authorities and will continue to do so. In order to provide the best possible service to our customers, we not only took the precaution of removing the lots from the London sale, but have also put a hold on accepting any further consignments from the nominee who is alleged to have acted on behalf of Mr. Kurniawan at the London sale. None of the rare and fine wines being offered at our upcoming Hong Kong sale, scheduled for March 23 and 24, were consigned by that nominee or Mr. Kurniawan. Further, if the allegations in the complaint prove to be true, we intend to pursue all our remedies against the nominee for breach of contract and misrepresentation.”
About Spectrum Group International, Inc.
Spectrum Group International, Inc. (together with its subsidiaries, “we,” the “Company” or “SGI”) is a global trading and collectibles network and a designated Fortune 500 company. We are a trader of precious metals and an auctioneer of coins, stamps and wine, serving both collectors and dealers. We are also a merchant/dealer of certain collectibles. Our collectibles offerings span the price spectrum from modest to ultra-high end. Furthermore, we offer loans to coin dealers, collectors and investors backed by their precious metals, rare coins, and other collectibles as collateral.
Our Trading business is conducted through A-Mark Precious Metals, Inc. (“A-Mark”) and its subsidiaries. A-Mark is a full-service precious metal trading company, and an official distributor for many government mints throughout the world. A-Mark products include gold, silver, platinum and palladium for storage and delivery in the form of coins, bars, wafers and grain, and our services include financing, leasing, consignment, hedging and various customized financial programs. A-Mark’s subsidiary, Collateral Finance Corporation, provides financing on a wide array of bullion and numismatic products.
Our Collectibles business operates as an integrated network of leading companies concentrating on numismatic (coins) and philatelic (stamps) materials and rare and fine vintage wine. We have offices and auction houses in North America, Europe and Asia. In addition to traditional live auctions, we also conduct Internet and telephone auctions.
Our Collectibles companies in the philatelic field are auction houses H.R. Harmer Global Philatelic Network GmbH, Corinphila Auktionen of Zurich, Switzerland, Heinrich Köhler Auktionshaus of Wiesbaden, Germany, Corinphila Veilingen B.V., Amstelveen, Netherlands, and John Bull Stamp Auctions, Ltd of Hong Kong. Spectrum Group’s Collectibles companies in the numismatics field include Stack’s Bowers Galleries (rare coin and currency auction house), Stack’s Bowers and Ponterio (world and ancient coins and currency auction house), Teletrade (online coin auctions), and Spectrum Numismatics International (wholesale rare coin dealer), all based in Irvine, California. Spectrum Wine Auctions is engaged in the sale by auction of rare and fine vintage wine.
About Spectrum Wine Auctions
Following in the grand tradition of its sister auction companies, Spectrum Wine Auctions is a subsidiary of Spectrum Group International, Inc. (SPGZ.PK), a consolidated global collectibles network listed on the Fortune 500. The company is a leading auctioneer of stamps, coins, and other memorabilia, targeting both collectors and dealers. Building a strong financial foundation, Spectrum Group International is also a merchant/dealer of certain collectibles and trader of precious metals. The company's collectibles offerings range from the modest to ultra high-end in value and span the globe. Spectrum Wine Auctions also conducts semimonthly online auctions through www.spectrumwine.com. The company offers competitive incentives for consignors and the ability to consign both highly-collectible and commonly found wines.
Backed by many decades of auction expertise and driven by a team of dedicated wine specialists and enthusiasts, Spectrum Wine Auctions is committed to offering buyers and sellers alike the most accessible and expansive auction opportunities of what is simply the world’s greatest consumable and collectible product—wine. For more information on Spectrum Wine Auctions, please call at 949.748.4845 or visit www.spectrumwine.com.
SAFE HARBOR STATEMENT
Statements in this press release that relate to future plans, objectives, expectations, performance, events and the like are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. Future events, risks and uncertainties, individually or in the aggregate, could cause actual results to differ materially from those expressed or implied in these statements. Factors that could cause actual results to differ are identified in our public filings with the Securities and Exchange Commission (SEC), and include the fact that we have not filed all of our reports required by the Securities Exchange Act of 1934. More information about factors that could affect our business and financial results included in our public filings with the SEC, which are available on the SEC’s website located at www.sec.gov.