“We are not going to let him terrorize and extort us,” Heritage president and owner Greg Rohan said. “Heritage has a reputation to maintain. We will go to the ends of the earth to defend it.”

That former employee, Gary Hendershott, filed a lawsuit in May alleging that Heritage used a shill bidder to “bid up” auction prices. Hendershott, 55, managed and coordinated the cataloging for Civil War and other militaria inventory for Heritage between April 2007 and April 2008. Immediately upon leaving the company, Hendershott filed the suit in federal court charging that Heritage owed him $1.6 million in commissions. Specifically, Hendershott alleges that he directly suffered as a result of Heritage’s criminal acts which violates the Racketeer Influenced and Corrupt Organizations Act (RICO).

At Heritage, Rohan paints a different portrait: “When he left as an employee he owed us well over $1 million … in advances, loans and some unprofitable deals he made. We don’t like to sue … we will only sue as a last resort. We were trying to negotiate a settlement. His reaction was to sue us.

“The lurid claims and the salacious headlines he has generated are absurd … he has manufactured nonexistent ’wrongs’ to try to gain leverage and renegotiate his debt.”

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Specifically, Hendershott alleges that Heritage created a fictitious entity – N.P. Gresham – to bid up the company’s online auction. Hendershott claims he first discovered the Gresham pseudonym in late summer or early fall of 2007 when internal documents were left on his desk. He said he noticed that “Gresham” was bidding in some of his own auctions.

Rohan does not deny the existence of an N.P. Gresham account. Heritage not only operates as a typical auction house, he said, but also has a direct purchase and sale division within the company. The Gresham account was often used to place bids on items at their auction prior to opening bidding. “We often sent around notices to our various divisions informing them they could use the account,” he said.

That division would speculate on the market, like any other bidder, Rohan said. “Sometimes, just like everyone else, we lost money. Just like everyone else we wrote checks out to the auction house.”

Once the auction began however, Heritage did not “bid up” items or withdraw bids, Rohan said. N.P. is a common phrase found among coin collectors, where Heritage has its origins, meaning “New Purchase.”

“In the rare coin world, people are always asking, ’let me see your NPs,’ what you have recently bought. Gresham, I’m not sure where that came from – that was in place before I came here 23 years ago.”

Rohan said the function of the pseudonym was known among all Heritage employees. “The pseudonym is for Heritage’s internal use only and identifies the affiliate that buys and sells inventory for its own account,” Heritage attorneys stated in court.

In addition, Rohan maintained that Heritage discloses its interest at the back of auction catalogs and online in its listed terms and conditions. Those terms read: “The Auctioneer or its affiliates may consign items to be sold in the Auction, and may bid on those lots or any other lots.”

“We are the most transparent auction company there is,” Rohan says. “The claims made by Hendershott and his attorney are a complete distortion of the facts and the law.”

Although three different judges have ordered the case into arbitration, Rohan said Hendershott and his attorney, Mark S. Senter, have failed to comply. Shortly after Hendershott’s attorney Mark S. Senter sent press releases to media outlets throughout the United States, Heritage attorneys charged in court the suit was without merit.

Questioning the ethical propriety of circulating press releases in regards to a present lawsuit, Heritage attorneys stated “Senter grossly misstated facts not alleged in Plaintiff’s pleading … Simply put, Plaintiffs have used this Court and the legal process as a medium to harass and defame Heritage in the public.”

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Eric C. Rodenberg