There are several issues that CGC needs to deal with.
1. CGC needs to be fully transparent about what they know and the time frame they were notified or discovered this person had found a possible/probable loophole in the reholdering process.
2. CGC needs to create a way for buyers/sellers to confirm through a CGC search that there is only ONE certification number out for any one particular book. It's obvious that CGC was not looking at this as a possible fraudulent threat, now they should.
3. CGC needs to create an additional barrier to prevent books from being removed/replaced from their holders. IE any removal of book creates a complete destruction of the slab itself so it cannot be returned and reholdered. Forcing book to be fully graded again and a new shell used. Label itself should be glued directly onto sleeve AND clamshell so that it would tear if someone tried to remove it, even with solvent or heat. The interior MUST be tamperproof.
4. CGC PR dept needs to go public because NOT doing so, creates a void in information and people who view 3rd party grading, encapsulation negatively will tarnish the process, trust in the grading process and protection of their book and grade itself. TRUST that this will not happen again will guard against their brand being deminished and creating another layer to protect the book/grade will preserve this relationship between collectors and CGC.
5. CGC must alert local, state and federal authorities as this fraud crosses many lines. The bad guy should be charged with wire fraud, as well as IRS tax evasion. EBAY/PAYPAL also needs to be in on this as bank accounts need to be frozen.
6. All titles and issue numbers need to be pulled from this person submissions and posted to the CGC website so that current owners of the tampered books can have CGC regrade (free) and reholder(free) and shipping free to create new trusts that book is what the label says it is. ALSO a check needs to be done for anyone doing similar actions, IE reholdering books above some number that would create a red flag. Obviously this person sent in hundreds if not a few thousand books using this process. Any reholdering request above 1 per month should raise a red flag and person's account should be monitored.
7. CBCS should be looking at this threat (it is a threat to their business model) and then looking at their own clamshells for ways someone can subvert the integrity of book/process//trust.