Art Businesses should also consider the form of the transaction, such as whether the transaction is taking place through intermediaries, face to face, entirely via the Internet, over the phone, or by any other similar non face to face means. In some circumstances, depending on the nature, value and/or geographic location of the transaction, enhanced due diligence may be appropriate.
Despite those advances, the detection of fraudulent art remains a complex undertaking. It is particularly difficult to weed out forgeries in the work of modern artists whose large numbers of works and superstar statuses make them especially attractive to those who commit fraud. Pablo Picasso, for example, was a prolific artist, creating a huge number of works on canvas and on paper as well as sculptures and ceramics. Considering his vast output and the varying styles and media in which he worked, scholars have had difficulty establishing a definitive corpus for him. The prestige associated with owning a Picasso and the difficulty of attribution, especially for a drawing, made and continues to make fraudulent representations of his work hard to police.
During the 16th century, imitators of Albrecht Dürer's style of printmaking added signatures to them to increase the value of their prints. In his engraving of the Virgin, Dürer added the inscription "Be cursed, plunderers and imitators of the work and talent of others".[1] Even extremely famous artists created forgeries. In 1496, Michelangelo created a sleeping Cupid figure and treated it with acidic earth to cause it to appear ancient. He then sold it to a dealer, Baldassare del Milanese, who in turn sold it to Cardinal Riario of San Giorgio who later learned of the fraud and demanded his money back. However, Michelangelo was permitted to keep his share of the money.[2][3]
John Drewe was able to pass off as genuine paintings, a large number of forgeries that would have easily been recognised as such by scientific examination. He established an impressive (but false) provenance and because of this galleries and dealers accepted the paintings as genuine. He created this false provenance by forging letters and other documents, including false entries in earlier exhibition catalogues.[5]
When addressing the efforts to establish an artwork’s provenance history and authenticity under Guideline 4, the AML Guidelines provide that “[i]t is important to obtain and publish in any catalogue or sales document as much information as possible about the artwork, including any known provenance,” and to “check major databases of stolen and looted art and obtain any relevant and available legal documents, witness declarations, [and] expert opinions[.]” In addition to a physical examination of the artwork and a technical analysis and dating of the materials used, “[d]ocuments helpful in establishing ownership and provenance include invoices, receipts, dated photographs, insurance records, valuations, official records, exhibition catalogues, invoices for restoration work, diaries, dated newspaper articles, original signed and dated letters.”
While the US art market remains relatively unregulated, organizations across the globe are taking steps to hold dealers accountable for reporting illegal activity. In February of 2013, the European Commission passed ordinances that require European galleries to report sales above 7,500 euros paid in cash, as well as file suspicious-transaction reports. And in the beginning of this year, a forum was held at the World Economic Forum in Davos, Switzerland in which economist Nouriel Roubini, among others, spoke on the art market’s susceptibility to laundering and other economic crimes like tax avoidance and evasion. “Anybody can walk into a gallery and spend half a million dollars and nobody is going to ask any questions," said Roubini according to Swiss Info.
Checked it out? Good, isn't it? Historical fiction based on the largest unsolved art heist in history? An artist agreeing to forge a famous painting from the original? And the original might actually *already* be a forgery? Seriously, how can I not read this book? The back text here is a great example of what back text should be: enough to really p ...more
The Responsible Art Market, or RAM, is an industry-supported not-for-profit organization which describes itself as ‘”[r]aising awareness of risks faced by the art industry and providing practical guidance on establishing and implementing responsible practices to address those risks.”  On its website, RAM provides both an Art Transaction Due Diligence Toolkit, as well as Guidelines on Combatting Money Laundering and Terrorist Financing (“AML Guidelines”).  The AML Guidelines are similar to the protocols set forth by the Basel Institute, but provide slightly more concrete detail.  They set forth eight basic principles:
While the US art market remains relatively unregulated, organizations across the globe are taking steps to hold dealers accountable for reporting illegal activity. In February of 2013, the European Commission passed ordinances that require European galleries to report sales above 7,500 euros paid in cash, as well as file suspicious-transaction reports. And in the beginning of this year, a forum was held at the World Economic Forum in Davos, Switzerland in which economist Nouriel Roubini, among others, spoke on the art market’s susceptibility to laundering and other economic crimes like tax avoidance and evasion. “Anybody can walk into a gallery and spend half a million dollars and nobody is going to ask any questions," said Roubini according to Swiss Info.
One of the best things about Goodreads is keeping a TBR list...that list that gets longer every month and nags at you when you start reading the new hot book instead. It's that nagging (just like a mother's "sit up straight!") that makes you really take a second look at the books you've been meaning to read forever and realize from reviews that you really should.
However, federal criminal prosecutions against art forgers are seldom brought due in part to high evidentiary burdens and competing law enforcement priorities. For example, internet art frauds now appear in the federal courts' rulings that one may study in the PACER court records. Some frauds are done on the internet on a popular auction websites. Traces are readily available to see the full extent of the frauds from a forensic standpoint or even basic due diligence of professionals who may research matters including sources of PACER / enforcing authority records and on the internet.
Speaking on the sidelines of the Art Business Conference, Pierre Valentin, head of the art law practice at London law firm Constantine Cannon, said laundering illicit funds through the art market was seductive because purchases at auctions "can be anonymous and it's a moveable asset. You can put the art on a private plane and take it anywhere. Plus there is no registration system for art."
* If the seller states that the work of art sold at an auction house, have them provide the name and contact information for the auction house as well as the date of the sale and lot number of the art in that sale. Just because an auction house sells a work of art does not automatically make that work of art genuine. Best procedure here is to get a copy of the auction catalog and carefully read the listing for the art.
Any given antiquity may have both a provenience (where it was found) and a provenance (where it has been since it was found). A summary of the distinction is that "provenience is a fixed point, while provenance can be considered an itinerary that an object follows as it moves from hand to hand."[25] Another metaphor is that provenience is an artifact's "birthplace", while provenance is its "résumé",[26] though this is imprecise (many artifacts originated as trade goods created in one region but were used and finally deposited in another).
In the 18th and 19th centuries, the mania for classification and study of the past resulted in an upsurge in forgeries as the art market adjusted to accommodate the new interest in the artistic past. That interest in the classification of the past also led to the founding of academic disciplines such as the history of art. The study of art history and the creation of agreed-upon bodies of work for artists and eras, as well as advances in science, made possible in the 20th century the winnowing out of forgeries, fakes, and misattributions from authentic works. As art historians gained more knowledge about the past and the styles, materials, and working conditions of artists and historical epochs, inauthentic and fraudulent works were more readily exposed.
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