"Katzen and Sack indicated to the undercover agent that they could resell the paintings overseas as part of the money-laundering scheme," said the U.S. Attorney for the District of Massachusetts, Michael J. Sullivan. The undercover sting investigation, apparently prompted by an informant's tip, was conducted by the U.S. Customs Service and the FBI.
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.”
^ Tan, Yu Shyang; Ko, Ryan K.L.; Holmes, Geoff (November 2013). "Security and Data Accountability in Distributed Systems: A Provenance Survey". 2013 IEEE 10th International Conference on High Performance Computing and Communications & 2013 IEEE International Conference on Embedded and Ubiquitous Computing. IEEE: 1571–1578. doi:10.1109/hpcc.and.euc.2013.221. ISBN 9780769550886.
Following the Renaissance, the increasing prosperity of the middle class created a fierce demand for art. Near the end of the 14th century, Roman statues were unearthed in Italy, intensifying the populace's interest in antiquities, and leading to a sharp increase in the value of these objects. This upsurge soon extended to contemporary and recently deceased artists. Art had become a commercial commodity, and the monetary value of the artwork came to depend on the identity of the artist. To identify their works, painters began to mark them. These marks later evolved into signatures. As the demand for certain artwork began to exceed the supply, fraudulent marks and signatures began to appear on the open market.
Glafira Rosales, an obscure Long Island art dealer, her boyfriend, and his brother enlisted Pei-Shen Qian, a Chinese artist in Queens, to paint Abstract Expressionist canvases in the style of such masters as Jackson Pollock, Mark Rothko, Robert Motherwell, and others. The venerable Knoedler gallery, which closed in 2011 as the forgeries came to light, still claims they believed Rosales’s story that the works were part of an undocumented collection sold directly by the artists to an anonymous “Mr. X.”
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.
Where the research is proceeding backwards, to discover the previous provenance of a painting whose current ownership and location is known, it is important to record the physical details of the painting – style, subject, signature, materials, dimensions, frame, etc.[7] The titles of paintings and the attribution to a particular artist may change over time. The size of the work and its description can be used to identify earlier references to the painting. The back of a painting can contain significant provenance information. There may be exhibition marks, dealer stamps, gallery labels and other indications of previous ownership. There may also be shipping labels. In the BBC TV programme Fake or Fortune? the provenance of the painting Bords de la Seine à Argenteuil was investigated using a gallery sticker and shipping label on the back. Early provenance can sometimes be indicated by a cartellino (a representation of an inscribed label) added to the front of a painting.[8] However, these can be forged, or can fade or be painted over.
Sometimes, they give us works that great artists simply didn’t get around to making. If a fake is good enough to fool experts, then it’s good enough to give the rest of us pleasure, even insight. The late Swiss collector Ernst Beyeler called a fake Rothko from Queens a “sublime unknown masterwork” in 2005 and hung it in his namesake museum. Why not think of that picture as the sublime masterwork that Rothko happened not to have got around to? Is it a bad thing if thousands more people in China get to own works by the great modern master Qi Baishi — even if the works they own aren’t actually by him? In some ways, they are by him, in the profound sense that they almost perfectly capture his unique contribution to art. If they didn’t, no one would imagine he’d made them.
Art history, historical study of the visual arts, being concerned with identifying, classifying, describing, evaluating, interpreting, and understanding the art products and historic development of the fields of painting, sculpture, architecture, the decorative arts, drawing, printmaking, photography, interior design, etc. Art historical research has two primary concerns.…

Conservation issues of Pompeii and Herculaneum Conservation-restoration of Ecce Homo by Elías García Martínez Conservation-restoration of The Gross Clinic by Thomas Eakins Conservation-restoration of Leonardo da Vinci's The Last Supper Conservation-restoration of the Shroud of Turin Conservation-restoration of the Sistine Chapel frescoes Conservation-restoration of the Statue of Liberty Conservation-restoration of the H.L. Hunley Modern and Contemporary Art Research Initiative


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.


Provenance – also known as "custodial history" – is a core concept of archival science and archival processing. The term refers to the individuals, groups, or organizations that originally created or received the items in an accumulation of records, and to the items' subsequent chain of custody.[16] The principle of provenance (sometimes also termed the principle of archival integrity or respect des fonds) stipulates that records originating from a common source (or fonds) should be kept together – where practicable, physically; but in all cases intellectually, in the way in which they are catalogued and arranged in finding aids. Conversely, records of different provenance should be preserved and documented separately. In archival practice, proof of provenance is provided by the operation of control systems that document the history of records kept in archives, including details of amendments made to them. The authority of an archival document or set of documents of which the provenance is uncertain (because of gaps in the recorded chain of custody) will be considered to be severely compromised.
The quality of provenance of an important work of art can make a considerable difference to its selling price in the market; this is affected by the degree of certainty of the provenance, the status of past owners as collectors, and in many cases by the strength of evidence that an object has not been illegally excavated or exported from another country. The provenance of a work of art may vary greatly in length, depending on context or the amount that is known, from a single name to an entry in a scholarly catalogue some thousands of words long.

These pesky forgers don’t limit their scams to painting, and are capable of turning their hands to many types of fakery. In the case of this set of six Louis XIV chairs—sold by highly-respected Parisian antiques dealer Kraemer Gallery to the Palace of Versailles itself—it emerged after the sale was made public that there just were not as many chairs in the court of Versailles as there are currently in circulation. The natural conclusion would be that some of the presumed authentic chairs must indeed be fakes.
Within computer science, informatics uses the term "provenance"[33] to mean the lineage of data, as per data provenance, with research in the last decade extending the conceptual model of causality and relation to include processes that act on data and agents that are responsible for those processes. See, for example, the proceedings of the International Provenance Annotation Workshop (IPAW)[34] and Theory and Practice of Provenance (TaPP).[35] Semantic web standards bodies, including the World Wide Web Consortium in 2014, have ratified a standard data model for provenance representation known as PROV[36] which draws from many of the better-known provenance representation systems that preceded it, such as the Proof Markup Language and the Open Provenance Model.[37]
In another common form of money laundering, called smurfing (also known as "structuring"), the criminal breaks up large chunks of cash into multiple small deposits, often spreading them over many different accounts, to avoid detection. Money laundering can also be accomplished through the use of currency exchanges, wire transfers, and "mules"—cash smugglers, who sneak large amounts of cash across borders and deposit them in foreign accounts, where money-laundering enforcement is less strict.
* Provenance must specifically describe the piece of art that's being offered for sale in order to be valid. It should contain important information including dimensions, medium, date of creation (if known), title (if known), and other relevant details. Documents that do not specifically describe the work of art in question do not constitute valid provenance.
Some exposed forgers have later sold their reproductions honestly, by attributing them as copies, and some have actually gained enough notoriety to become famous in their own right. Forgeries painted by the late Elmyr de Hory, featured in the film F for Fake directed by Orson Welles, have become so valuable that forged de Horys have appeared on the market.

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:
Law enforcement officials in the United States and abroad say “Hannibal” is just one of thousands of valuable artworks being used by criminals to hide illicit profits and illegally transfer assets around the globe. As other traditional money-laundering techniques have come under closer scrutiny, smugglers, drug traffickers, arms dealers and the like have increasingly turned to the famously opaque art market, officials say.
The paintings were sent "in respect to a money-laundering transaction," which was "related to this drug deal," she clarified, adding that "it was the money-laundering debt that Clemente was repaying." The U.S. Drug Enforcement Administration believes that oil paintings are "a way in which drug dealers launder money. It is an investment for their drug transaction proceeds," she said.
The 2,200 photographs by masters like Alfred Stieglitz, Edward Weston and Edward Steichen — more than could fit into an 18-wheeler — were paid for, court papers say, with some of the $78 million that the authorities say Mr. Rivkin got from defrauding oil companies like Shell, Exxon, and Mobil. Mr. Rivkin, who has not been charged with any crimes, was last thought to be in Spain and had arranged to have the photos shipped there.

Whenever I am approached by someone to buy my art, who I did not know, I always insist that I be paid through PayPal or Payoneer. After that, I usually never heard from those people again.  Another way for an artist to protect themselves in a transaction like this is to insist to have the transaction handled by an escrow agent.  The final transaction, shipping etc. is not completed until all of the funds have been verified and cleared.  Any legitimate buyer or collector of art will not have a problem dealing in either manner.  Anyone who objects to this way of doing business with you is someone who you do not want to do business with!
All the paintings appear to have originated with one man, an obscure French collector-turned-dealer named Giulano Ruffini. The works appear to have had next-to-no provenance, save that they came from the collection of French civil engineer André Borie. Ruffini insists he never suggested they were the real deal, and that eager dealers were the ones to declare his paintings Old Master originals.
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:

French artist Orlan sued American pop star Lady Gaga for forgery after the release of the 2011 hit video “Born This Way,” but ultimately lost her case. Orlan pointed out similarities to her piece Bumpload (1989), in which she added prosthetic ridges to her face, and Woman With Head (1996), which featured a decapitated head on a table. After losing her $31.7 million lawsuit, Orlan was ordered to pay the singer and her record label €20,000 ($22,000)
According to former art consultant Beth Fiore, people don’t normally buy art with cash in the US; “Cash payments for art happen in Russia [and the] Middle East” more often. So if you’re keeping your fortune under your mattress and don’t live in either of those places, you’ll need to get your money into a bank account without alerting the authorities. One way to do that is by smurfing. Despite the mental image of a blue cartoon character riding a surfboard that you may have conjured, smurfing means depositing money into a bank account or several bank accounts by breaking it up in to many small amounts that are deposited at different times, by different people. US banks must report any deposits over $10,000 to the IRS, so in order to stay sneaky, you’ll need to make a series of deposits that are less than that amount. You can hire “smurfs” to help you, who are often ordinary people willing to make an extra buck by opening up a joint bank account in their name, that you or your company has access to, and depositing money into it every day.
Many forgeries still escape detection; Han van Meegeren, possibly the most famous forger of the 20th century, used historical canvasses for his Vermeer forgeries and created his own pigments to ensure that they were authentic. He confessed to creating the forgeries only after he was charged with treason, an offense which carried the death penalty. So masterful were his forgeries that van Meegeren was forced to create another "Vermeer" while under police guard, to prove himself innocent of the treason charges.
Following these professional museum standards, TMA periodically reviews its holdings and occasionally deaccessions a select few works of art, based on what will enhance the entire Museum collection. The funds realized from deaccessioning are used solely to improve TMA’s collection through the purchase of new art, in compliance with the Association of Art Museum Directors (AAMD) Professional Practices in Art Museums (see here), the American Alliance of Museums (AAM) Code of Ethics (see the most recent update to AAM’s guidelines here) and the International Council of Museums (ICOM) Code of Ethics (see here).

Sylvia Dugan I started reading it, but found the main character to be too shallow and not very believable. I finally decided to stop reading it after the first 50+…moreI started reading it, but found the main character to be too shallow and not very believable. I finally decided to stop reading it after the first 50+ pages, too many other good books to read.(less)
Open a foreign bank account in a tax haven like Switzerland or the Cayman Islands. Banks in these countries are not required by law to hand over information about your account to anyone without your consent. If you open what's called a “numbered account” in a private Swiss bank like Union Bank of Switzerland or Credit Suisse Group, a number or code name will be associated with the account, rather than your name. To open a numbered account, you will most likely need to travel to Switzerland to do it, though if this is impossible, there are firms that help people set up off-shore bank accounts that can help you. You will most likely need to make an initial deposit of at least $100,000 to open the account, which will cost roughly $300 a year to maintain.
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.
The history of the arts reveals instances of persons who have used forgery either to gain recognition of their own craftsmanship or to enjoy deceiving the critics who had rejected their genuine work. A legend told about Michelangelo illustrates this point. At the age of 21, he carved in marble a small sleeping Eros, or Cupid, based on ancient Roman works that he admired. Some time later this carving was sold as an antique to the well-known collector Cardinal Riario, who prized it highly. When Michelangelo stepped forward and claimed the work as his own he won immediate fame as a young man who could rival the work of the greatly venerated ancient sculptors.
As for you artists, firmly establishing yourself as link number one in the chain of provenance is essential. These days, proof of authenticity or authorship accompanying a work of art is more important than ever. In order to prevent unscrupulous sellers from trafficking in fakes, and avoid situations where people question your art, keep good records right from the start and provide some form of documentation with every artwork you produce. The last thing you want is people trying to figure out whether or not you actually created certain works, or contacting you with requests to authenticate works that have no accompanying paperwork or documentation. The bad news is that in the long run, repeated incidents surrounding undocumented art can actually compromise your market. So make sure there's never any doubt that ownership of your art begins with you. Read more about how to do that in this article about How to Authenticate Your Art.
In the last decade, reported revenues from the Chinese auction market have expanded ninefold, now higher than those of its American counterpart. Records have been set for Chinese masters that compete with the West’s already inflated prices for Warhol and Picasso — if such records even end up holding, given some buyers who are refusing to pay because of doubts about authenticity.
Art scammers have one objective and that is to separate the artist from their art or from their money, or both.  When approached by a stranger on the Internet, always be aware of and skeptical of phony emails and solicitations.  The old adage that says “when it sounds too good to be true…” still stands true today.  All artists should be aware of and comfortable with whom they are dealing with when they are selling their art on the Internet.
Ken Dreifach, head of the Internet Bureau at the New York State Attorney General's office, reported the reoccurring sales of a forged painting. An individual purchased a painting from the Art and Design Center of New York City and brought it to an art expert for appraisal who determined the work was a forgery. The Art and Design Center refunded the money to the purchaser but then sold it to another individual. That person also had it evaluated by an expert who said it was a fake. The Center refunded the money to the second purchaser. Then an undercover investigator from the attorney general's office bought the same painting and the jig was up. The attorney general filed charges and the case was settled against the Center for various monetary charges (Department of Law, 2001).
Most of these industries have checks. Real estate titles and deeds at least require a name. Mortgage brokers, stockbrokers, casinos, banks and Western Union must report suspicious financial activity to the federal Financial Crimes Enforcement Network. Banks must report all transactions of $10,000 or more. Altogether, the network logs more than 15 million currency transactions each year that can be used to track dirty money, said Steve Hudak, a spokesman for the agency. The art market lacks these safeguards. Roll up a canvas and it is easy to stash or move between countries; prices can be raised or lowered by millions of dollars in a heartbeat; and the names of buyers and sellers tend to be guarded zealously, leaving law enforcement to guess who was involved, where the money came from and whether the price was suspicious.
In the geologic use of the term, provenance instead refers to the origin or source area of particles within a rock, most commonly in sedimentary rocks. It does not refer to the circumstances of the collection of the rock. The provenance of sandstone, in particular, can be evaluated by determining the proportion of quartz, feldspar, and lithic fragments (see diagram).
* 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.

The indictment says that Sack and Katzen promoted themselves as fine art dealers who were "capable of selling various works of art to be paid for in cash, as a way to launder money earned through illegal drug trafficking. The pair "offered to resell overseas any works of art first sold by them," the indictment says. One of the acts alleged as part of the conspiracy was the purchase of a cash-counting machine to sort out any counterfeit bills from the millions the pair expected to receive, the indictment says. The conspiracy took place in New York, Connecticut and Massachusetts, the U.S. says.
To sum up, the Times muddles the very different issues of ensuring the integrity of works of art—the authenticity question—which is real and requires an entity that can work with owners who want to maintain their anonymity for legitimate reasons with the issue of beneficial ownership—which is less pressing with art because it is relatively rare and covered by the parallel system of KYC run by the banks the auction houses rely upon to vouch for their clients’ ability to afford the works they want to buy.
* Get full names and contact information for all galleries or auction houses that the seller claims previously owned the art. If these galleries are still in business, contact them in order to confirm that the information provided by the seller is correct. If none of the galleries or auction houses are traceable, then this may be cause for concern.

Art forgery dates back more than two thousand years. Roman sculptors produced copies of Greek sculptures. Presumably[clarification needed] the contemporary buyers knew that they were not genuine. During the classical period art was generally created for historical reference, religious inspiration, or simply aesthetic enjoyment. The identity of the artist was often of little importance to the buyer.
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