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The United States passed the Banking Secrecy Act in 1970, requiring financial institutions to report certain transactions to the Department of the Treasury, such as cash transactions above $10,000 or any others they deem suspicious, on a suspicious activity report (SAR). The information the banks provide to the Treasury Department is used by the Financial Crimes Enforcement Network (FinCEN), which can share it with domestic criminal investigators, international bodies or foreign financial intelligence units.
Some suggest that a verbal confirmation serves as authentication, although if you can’t store the document in your Artwork Archive account, it’s risky. If someone gives you a verbal confirmation, our suggestion is to request an inked version, certified by either the individual’s credentials or the gallery where you bought the piece. Whatever form of paper authenticity you have, be sure to log it in your Artwork Archive account.
As previously noted in this Journal, the legal structure we call art law (an amalgam of personal property law, contract, estate, tax, and intellectual property law) supporting the acquisition, retention, and disposition of Fine Art, often fits uneasily with art market custom and practice. The result is that 21st-century art market participants are frequently unsure of their legal rights and obligations.
However, even this careful process can be faked by those knowledgeable enough. In our collector's reading list, we feature a book called Provenance that examines how two people were able to sell forged art at the highest levels. Their documentation for the inauthentic pieces they sold was so expertly faked that more obvious flaws in the pieces themselves were overlooked.
* Get full names and contact information for all private parties who the seller claims previously owned the art, or other forms of proof that they indeed owned it. Confirm that these people actually exist (or existed) and, when possible, contact them or their descendants directly to confirm all claims. Or have the seller do it for you. Simply being given a list of names with no other accompanying or verifiable information is not enough.
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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."
Particularly notorious was the case of the Wise forgeries. Thomas James Wise (1859–1937) had the reputation of being one of the most distinguished private book collectors on either side of the Atlantic, and his Ashley Library in London became a place of pilgrimage for scholars from Europe and the United States. He constantly exposed piracies and forgeries and always denied that he was a dealer. The shock was accordingly the greater in 1934 when John W. Carter and Henry Graham Pollard published An Enquiry into the Nature of Certain Nineteenth Century Pamphlets, proving that about 40 or 50 of these, commanding high prices, were forgeries, and that all could be traced to Wise. Subsequent research confirmed the finding of Carter and Pollard and indicted Wise for other and more serious offenses, including the sophistication of many of his own copies of early printed books with leaves stolen from copies in the British Museum.
Finally, under Guideline 6, the AML Guidelines provides that art businesses must maintain adequate records of their due diligence efforts. Perhaps stating the obvious, but perhaps also implicitly acknowledging the existence of practices by certain dealers, the AML Guidelines observe that “[a]ll documents issued by an Art Business in connection with a transaction (e.g. valuations, sale and purchase agreements, invoices, shipping documents, import / export declarations etc.) should be true, accurate and contemporaneous and represent the honestly held professional opinions of the Art Business.” Likewise, dealers “should refuse all requests from clients to alter, back date, falsify or otherwise provide incomplete or misleading documentation or information relating to a transaction. If there are legitimate reasons for altering a document (e.g. invoicing error etc.) the circumstances and justification should be fully documented and retained on file for future reference and audit.”
Fraudulent misrepresentations are one thing, but do sellers who proudly “stand behind the works they sell” really intend to be strictly liable (i.e., without fault) for any error or omission in the provenance or exhibition history? Do sellers undertake to do independent investigations of the provenance, or do they just pass along the same information they received when the work was acquired? In practice, more sophisticated art market participants, such as the major auction houses, include disclaimers (in fine print) in their terms and conditions of sale, but when smaller galleries and dealers sell art they rarely incorporate such protections against liability for faulty or inaccurate information.

IN Queens, a guy working in his garage churned out “Pollocks” and “Rothkos” that fooled the experts, sold for millions of dollars and helped destroy the Knoedler & Company gallery, as we learned in recent months. In China, thousands of artisans have forged the country’s artistic treasures, both ancient and modern, according to a report in The New York Times.
The United States passed the Banking Secrecy Act in 1970, requiring financial institutions to report certain transactions to the Department of the Treasury, such as cash transactions above $10,000 or any others they deem suspicious, on a suspicious activity report (SAR). The information the banks provide to the Treasury Department is used by the Financial Crimes Enforcement Network (FinCEN), which can share it with domestic criminal investigators, international bodies or foreign financial intelligence units.
Statistical analysis of digital images of paintings is a new method that has recently been used to detect forgeries. Using a technique called wavelet decomposition, a picture is broken down into a collection of more basic images called sub-bands. These sub-bands are analyzed to determine textures, assigning a frequency to each sub-band. The broad strokes of a surface such as a blue sky would show up as mostly low frequency sub-bands whereas the fine strokes in blades of grass would produce high-frequency sub-bands.[19] A group of 13 drawings attributed to Pieter Brueghel the Elder was tested using the wavelet decomposition method. Five of the drawings were known to be imitations. The analysis was able to correctly identify the five forged paintings. The method was also used on the painting Virgin and Child with Saints, created in the studios of Pietro Perugino. Historians have long suspected that Perugino painted only a portion of the work. The wavelet decomposition method indicated that at least four different artists had worked on the painting.
During the Renaissance, many painters took on apprentices who studied painting techniques by copying the works and style of the master. As a payment for the training, the master would then sell these works. This practice was generally considered a tribute, not forgery, although some of these copies have later erroneously been attributed to the master.
At times restoration of a piece is so extensive that the original is essentially replaced when new materials are used to supplement older ones. An art restorer may also add or remove details on a painting, in an attempt to make the painting more saleable on the contemporary art market. This, however, is not a modern phenomenon - historical painters often "retouched" other artist's works by repainting some of the background or details.

The fundamental consideration in determining forgery is “intent to deceive.” The act of copying a painting or other work of art is in itself not forgery, nor is the creation of a work “in the style” of a recognized painter, composer, or writer or of a particular historical period. Forgery may be the act not of the creator himself but of the dealer who adds a fraudulent signature or in some way alters the appearance of a painting or manuscript. Restoration of a damaged painting or manuscript, however, is not considered forgery even if the restorer in his work creates a significant part of the total work. Misattributions may result either from honest errors in scholarship—as in the attribution of a work to a well-known artist when the work was in fact done by a painter in his workshop, a pupil, or a later follower—or from a deliberate fraud.
Stories of art and money laundering tend to be media friendly, and often involve the wealthy behaving poorly.  In one notorious case, the Department of Justice (“DOJ”) seized, via a civil forfeiture action, Jean Michel Basquiat’s 1981 painting, Hannibal. This work — later returned to Brazil by the DOJ — had been smuggled into the U.S. by Edemar Cid Ferreira, a former Brazilian banker who was convicted of money laundering and other offenses, and who allegedly converted some of his laundered proceeds into a significant art collection.  According to the DOJ, although Hannibal had been appraised at a value of $8 million, it had been smuggled by Ferreira into the U.S. from Brazil, via the Netherlands, with false shipping invoices stating that the contents of the shipment were worth $100.  Other stories provide less genteel tales of drug cartels, terrorist organizations and other criminal syndicates financing themselves through systemic looting and the illicit antiquities trade.
Some forgers have created false paper trails relating to a piece, in order to make the work appear genuine. British art dealer John Drewe created false documents of provenance for works forged by his partner John Myatt, and even inserted pictures of forgeries into the archives of prominent art institutions.[11] In 2016, Eric Spoutz plead guilty to one count of wire fraud related to the sale of hundreds of falsely attributed artworks to American masters accompanied by forged provenance documents. Spoutz was sentenced to 41 months in federal prison and ordered to forfeit the $1.45 million he made from the scheme and pay $154,100 in restitution.[12]
Stories of art and money laundering tend to be media friendly, and often involve the wealthy behaving poorly.  In one notorious case, the Department of Justice (“DOJ”) seized, via a civil forfeiture action, Jean Michel Basquiat’s 1981 painting, Hannibal. This work — later returned to Brazil by the DOJ — had been smuggled into the U.S. by Edemar Cid Ferreira, a former Brazilian banker who was convicted of money laundering and other offenses, and who allegedly converted some of his laundered proceeds into a significant art collection.  According to the DOJ, although Hannibal had been appraised at a value of $8 million, it had been smuggled by Ferreira into the U.S. from Brazil, via the Netherlands, with false shipping invoices stating that the contents of the shipment were worth $100.  Other stories provide less genteel tales of drug cartels, terrorist organizations and other criminal syndicates financing themselves through systemic looting and the illicit antiquities trade.

I'll make a confession right off the bat: I didn't give The Art Forger 4 stars because I was blown away by the prose, scene, setting, or characterization. Had those been up to snuff I'd have given it an easy 5. There are some flat characters, relies somewhat on stereo typical thinking about artists and their studios, it sports some letters written by someone else in stand alone chapters which jar a bit with the first person view point (one would assume our heroine would have no knowledge of thes ...more
A newly discovered type of art inevitably brings on a flood of forgeries. At the end of the 19th century, when the first small, attractive Tanagra figurines were found in Greece, the market very shortly was flooded with a myriad of fraudulent Tanagra terra-cotta statuettes. In the mid-20th century, African primitive art became very popular, and woodcarvers from Italy to Scandinavia responded to supply the demand. Later, a very early civilization was discovered in Turkey, and the few genuine Anatolian ceramic pieces that appeared on the market were followed immediately by very competent forgeries apparently made in the same location as the ancient pieces. The lack of knowledge about genuine pieces made detection extremely difficult.
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An essay by Alexander Nagel, a professor of Renaissance art at the Institute of Fine Arts in New York, argues that “forgery” is a concept that barely existed in Western art before around 1500, when the art market was invented and a new cast of players who came to be known as “dealers,” “collectors,” “connoisseurs” — and forgers — was born. Before that moment a copy could stand in perfectly well for an earlier work of art, so long as it transmitted the same “essential content,” as Mr. Nagel puts it, and could fill the same religious or commemorative functions. When a great Byzantine icon was copied, the new version was felt to have the same relationship to its divine subject as the older one, and so could do the same cultural work. What would it mean to “forge” a picture, in a world where originals and copies could be interchanged?
Jack Flam suggested the paintings be sent for scientific testing to Jamie Martin, one of the world's top forensic art analysts. Martin showed us how he examined one of the fake Robert Motherwells using a stereomicroscope to study every millimeter of the painting's surface, and to select and then remove samples for identification. That's how he detected circular marks in the base layers, indicating an electric sander had been used to remove paint.

The anonymity of buyers is also a huge advantage for criminals. Who hasn’t seen the images of an art auction for a famous painting at Christie’s or Sotheby’s, where brokers are on the phone with mysterious clients? Art market operators generally refuse to disclose the identities of their clients under the guise of “protecting the integrity of the transactions.”
Contact an art advisor to help you find a buyer for your work or see if an auction house like Sotheby’s or Christie’s wants to auction it for you. If they help you sell your collection, they will make money, so it’s in their best interest not to ask any questions. Make an appointment with an auction house to appraise the pieces in your collection. You’ll sign a contract that says you are allowing the auctioneers to sell your collection on consignment, which means if it sells you get paid, and if it doesn’t you get the art returned to you. It will also tell you what sort of fees you will be charged - like insurance, shipping, and the auction house’s cut. You’ll ship the work to the auction house, wait for your collection to be sold, and make it rain.

When one of the oldest and most respected art galleries in America, the Knoedler Gallery in New York, closed its doors abruptly in 2011, the art world was stunned. Not because the gallery closed, but by the discovery that over the course of 15 years, the gallery and its president, Ann Freedman, had sold millions of dollars in forgeries to wealthy collectors.
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