On close inspection of this picture included above, a small cud error is evident at the edge of top left petal of this 2012 Remembrance Gold Poppy $2 coin. This is the most common location for a cud to appear on this specific coin.

Usually, in assessing the value of a cud error, the general rule is; the lower the mintage a coin, the more distinctive a cud’s size and shape comparative to cuds found on same coin, and the greater frequency of cuds appearing on a coin - the more unique it can be considered.

Image: A cud evident behind the ear of the top kangaroo on this $1 Mob or Roos, affectionately known as a rabbit ear cud.

Where Does the Term Cud Originate?

The term ‘cud’ was coined by American numismatic error specialist Morton (also known as Mort) Christopher Goodman. Mort published a book 'The Design Cud' in 1969 which assisted in popularising the word among fellow coin enthusiasts. For the time period Mort’s publication on the cud has been regarded as the most comprehensive study devoted to a single type of coin error.

Through Mort’s definition of the word, the cud on a coin is formed when part of the die the breaks away creating a cavity, which allows for the space to be filled by the planchet (or milled blank) when being pressed into a coin. The cud is symbolically representative of the cud produced by a cow, when partially digested feed is regurgitated back into the mouth of the cow, just as the metal planchet is figuratively regurgitated when filling the cavity of the die.

Image: A cud evident on the rim of this this pictured 2019 $2 Aboriginal Elder coin. Rim cuds are one of the more common cuds as the rim is a weaker spot on the die and degrades faster than other areas of the die.

Fake Error Coins

Perhaps the most fascinating insight relating to Mort was not that he specified the term for one of the most common coin errors, but that he was a counterfeiter of error coins himself. In August 1969 Mort and another error coin specialist by the name of Roy Earl Gray were found guilty by a federal grand jury for conspiracy to produce counterfeit error coins.

Mort and Roy

As a previous record statistician for the Collectors of Numismatic Errors (CONE) club, former director of research and authentication for the Numismatic Error Collectors of America (NECA) club, and vice president of the NECA; Mort held intricate knowledge of the minting process, which he would methodically detail step by step at various numismatic meetings and events.

Roy received great acclaim across the numismatic community for winning many competitions and awards in and exhibitions he entered displaying his collection of error coins. The son of wealthy parents, Roy had a collection valued at $600’000 USD as stated by Los Angeles police at the time of his 1969 arrest.

Prosecution and Conviction

Records indicate Mort aged 44, had his address listed as 1139 N Kenmore Ave in  Los Angeles, and Roy aged 20, had his address listed as 441 Linda Vista Way in Pasadena. The trial of Mort and Roy was scheduled for the 21st of July 1969. Roy was reportedly released on bail after paying the total set amount of $61’250.

Both men were jointly charged and found guilty by a Federal grand jury in August 1969. In September the same year Mort was found guilty on seven of nine counts to conspiring counterfeit coins and sentenced to two years in prison.

By all accounts, Roy pleaded guilty to a single charge of conspiracy alleging that he sought to create counterfeit coins in resemblance and similarity to silver coins produced by the United States Mint, namely silver coins in the denominations of dimes, nickels, quarters, and half dollars.

In connection to the counterfeiting trial, Roy was also sentenced for soliciting the commission of a crime in an attempt to have two coin dealers murdered. Two North Hollywood coin and stamp dealers Todd Parker and Timothy Frein had been holding part of Roy’s collection as collateral for $42’000 which they reportedly lent to him. Testimony offered during the trial revealed that Roy offered $2’500 in total to an undercover Los Angeles police agent, if the dealer’s shop would be blown up, the owners killed, and loan records destroyed. Roy received a five year prison sentence for his efforts after receiving a psychiatric assessment ordered by Judge Lucas.

Testimony of government witnesses throughout the trial revealed that the market value of the recovered counterfeit coins Mort and Roy had conspired to produce and manufactured was in excess of $1’000’000.

Doubled Die Lincoln Cent and the 1942 Over 1941 Mercury Head Dimes

With their comprehensive understanding of minting processes and detailed knowledge of error coins, Mort and Roy set out to imitate two of the most well-known and popular US coin errors.

The first being the doubled die error. This error is most frequently connected to the Lincoln one cent coin across the years 1955, 1958, 1969, 1972, 1983, and 1995, with 1958 being regarded as the rarest year in this error series. One of two graded 1958 doubled die Lincoln cents sold for $336’000 USD at a 2018 Stack’s Bowers Galleries auction.

Together Mort and Roy also operated to produce at least 300 of the valuable silver 1942 over 1941 Mercury head dimes. The main identifying detail of these forgeries, which featured as convincing evidence during the trial; was that genuine dimes have 118 serrations on the third side of the coin, while the fakes possessed 120 serrations.

How did Mort and Roy Produce Their Counterfeits?

Court documents reveal that Roy obtained sheets of silver and Mort had these silver sheets re-rolled to a thickness which approximated the strip thicknesses of U.S. coins prior to manufacture. Mort arranged for the purchase of punching dies to punch out slugs. These were ordered in the sizes of dimes, nickels, quarters and half dollars.

Mort also obtained the coining collar in the size of a dime with 120 serrations and dies in the approximate size of dimes and pennies. Mort arranged for the purchase of an upset mill with modifications in the dimensions of silver dollars, half dollars, quarters, and dimes. Mort then obtained a small coining press to be used to punch planchets out of metal strips and to form designs on those planchets for medallions or similar articles. Furthermore, Mort left a die and a collar set with the manufacturer of the press to enable him to produce the press for his own purposes. These dies were very close in size to either a penny or a dime.

Integral to the production of these fake coins was the Agietron electrical discharge machine (e.d.m.) from Alina Corporation which Roy had acquired. This electrical discharge machine was capable of producing fake coin dies through a spark erosion process. Alina Corporation employees had trained Mort in the proper use of the machine. The function of the e. d. m. was to imprint an image onto a die or other metallic object through a spark-gap operation of electricity.

Getting Caught

Once the fake 1969 doubled die obverse cents were produced, Roy contacted a collector by the name of Robert Teitelbaum and asked him to sell the illegal coins. One of the first fake 1969 doubled die coins sold for $100. Later, Teitelbaum sold an additional 2,900 fake 1969 Doubled Die Obverse cents to Sam Jowdy for $92,000. Roy then asked Robert to place 85 fake 1969 doubled die cents into circulation in the Washington area. Instead of following Roy’s request, Robert turned them over to the Secret Service.

US Secret Service Involvement

Once the Secret Service became involved, Special Agent Miller was tasked with reproducing the fake 1969 doubled dies and the 1942 over 1941 Mercury dimes using an e.d.m. This was undertaken after receiving written authorization from the Director of the Secret Service. Agent Miller was successful in his task, which further added to the accumulating evidence against Mort and Roy. Following this certified method of forging the error coins, the hunt to recover all 1969 doubled die cents and 1942 over 1941 Mercury dimes began.

Secret Service Seizures

Coincidentally and most likely unbeknownst to Mort and Roy, one of the coins they had set out to counterfeit had legitimate sibling; the 1969-S Lincoln one cent double die.  The first 1969-S doubled die, was verified by a coin dealer in July 1970. This specific error does not appear on the 1969-D (Denver Mint) or the no mint mark (Philadelphia Mint) coin, only on the 1969-S (San Francisco Mint) Lincoln cent specifically.

As the Secret Service searched for fake 1969 doubled die forgeries, they traced down several authentic 1969-S doubled die coins. The Secret Service assumed that these genuine 1969-S doubled dies were fake and ordered them to be destroyed, making a rare coin even rarer. In the end, the Secret Service realised their mistake and returned some of the genuine 1969-S doubled die cents back to their owners. Thanks to the destruction of several examples by the Secret Service, only about 30 genuine 1969-S doubled dies are still known to exist.

RESOURCES

United States Mint 6/07/2022: Coin Production - https://www.usmint.gov/learn/production-process/coin-production

The Newman Numismatic Portal Washington University St. Louis 02/02/2023: Morton Christopher Goodman - https://nnp.wustl.edu/library/PersonDetail/527139

The Newman Numismatic Portal Washington University St. Louis 02/02/2023: Roy Earl Gray - https://nnp.wustl.edu/library/PersonDetail/527140/

Redlands Daily Facts 04/06/1969: Coin collector accused of murder plot - https://www.newspapers.com/clip/5706212/tim-frein-target-of-murder-plot/

Professional Coin Grading Services 09/12/2019: 1958 Doubled Die Remains One Of The Most Elusive Lincoln Cent Varieties - https://www.pcgs.com/news/1958-doubled-die-lincoln-cent-remains-elusive

Justia US Law 03/02/2023: United States of America, Plaintiff-appellee, v. Mort Christopher Goodman, Defendant-appellant, 457 F.2d 68 (9th Cir. 1972) - https://law.justia.com/cases/federal/appellate-courts/F2/457/68/308207/

Last Updated: 09/02/2023