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Despite being perfectly legal and of exceptionally high quality, art reproductions do carry a stigma. The owner of one faux Picasso recounted the story of how his grandparents, after selling their entire collection, commissioned a major auction house to duplicate each piece as gifts for their grandchildren. He declined to be named. Two sources from Christie’s, who spoke on background, have confirmed that reproduction is a common practice there. And as of press time, the Metropolitan Museum of Art has not returned our request for comment.
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.
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.
Data provenance covers the provenance of computerized data. There are two main aspects of data provenance: ownership of the data and data usage. Ownership will tell the user who is responsible for the source of the data, ideally including information on the originator of the data. Data usage gives details regarding how the data has been used and modified and often includes information on how to cite the data source or sources. Data provenance is of particular concern with electronic data, as data sets are often modified and copied without proper citation or acknowledgement of the originating data set. Databases make it easy to select specific information from data sets and merge this data with other data sources without any documentation of how the data was obtained or how it was modified from the original data set or sets.[31] The automated analysis of data provenance graphs has been described as a mean to verify compliance with regulations regarding data usage such as introduced by the EU GDPR.[69]
In March 2001 in Boston, meeting with an undercover agent posing as a drug dealer who showed interest in buying the putative Raphael, Stewart said he could move cash, exchange cash for gems in addition to art, and handle the resale of the Raphael, the agent's affidavit says. Eventually, the deal shifted to the Modigliani and Degas, the affidavit says, and Stewart fell out of the transaction.

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.

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).
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.
Eli Sakhia was a respectable art gallery owner in business for 15 years in Manhattan. He sold privately and to auction houses in the United States and abroad. What he failed to tell his private buyers was that they were buying the forgeries and the auction houses were getting the real works. His modus operandi was to purchase originals, sell them to auction houses, and hire artists in the interim to reproduce fakes for sale to his clients. His problems started when a past buyer of a fake tried to sell his forged piece while Sakhia attempted to sell the original to another auction house. The houses brought in an expert who stated that the past buyer's work was a fake. Sakhia was arrested and convicted; he's expected to serve three to four years in prison (Campanile, 2004).
In the early 2000s, Brazilian financier Edmar Cid Ferreira had embezzled funds from his business empire — and he needed a way to hide the money. He found it in Hannibal, a painting by American artist Jean-Michel Basquiat. Appraised by the art world at $8 million, Ferreira showed up at New York’s Kennedy Airport in 2007 with the painting and a bill of lading listing the value as $100.
"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.
“There are museums in the past who have wanted to take something of high value down and replace it with a replica, but that’s a behind-the-curtain thing,” says Timothy Carpenter, a supervisor and special agent in the FBI’s art theft program who frequently lectures collectors to do the same. “If you’ve got this $10 million painting that you’re concerned about, you can probably afford to make a $5,000 copy made and hang it. It’s the only guarantee to keep their painting safe if they don’t have security on their residence.”
Archaeology and anthropology researchers use provenience to refer to the exact location or find spot of an artifact, a bone or other remains, a soil sample, or a feature within an ancient site,[3] whereas provenance covers an object's complete documented history. Ideally, in modern excavations, the provenience is recorded in three dimensions on a site grid with great precision, and may also be recorded on video to provide additional proof and context. In older work, often undertaken by amateurs, only the general site or approximate area may be known, especially when an artifact was found outside a professional excavation and its specific position not recorded. The term provenience appeared in the 1880s, about a century after provenance. Outside of academic contexts, it has been used as a synonymous variant spelling of provenance, especially in American English.
In recent weeks, the art world has been rocked by perhaps the biggest forgery scandal to hit the art world since Van Meegeren’s unmasking. The extent of the Old Master forgery ring is as of yet unknown, but Sotheby’s has already issued a refund to the buyer of a $10 million Frans Hals portrait, sold in 2011 in a private sale through London dealer Mark Weiss. James Martin’s Orion Analytical, a Williamstown, Massachusetts-based company which investigates artworks, found modern-day materials in the canvas, proving it to be a forgery.
If the BSA is extended to apply to dealers in art and antinquities, FinCEN can expect a robust notice and comment period for the implementing regulations.  Further, when proposing such regulations, FinCEN might draw upon some existing AML guidelines for the art trade, including those from two not-for-profit groups — one independent, the other supported by industry.  We explore those guidelines in the rest of this post.
In June, antiques dealers Laurent Kraemer, head of Paris’s venerable Kraemer Gallery, and chair specialist Bill Pallot, were arrested on suspicion of selling the Palace of Versailles four counterfeit medallion back chairs for €1.7 million ($1.9 million). Counted as “National Treasures,” the chairs were thought to be among a group of 13 created by Louis Delanois for the Palace living room in 1769, where they belonged to Louis XV’s last mistress, the countess du Barry.

This painting, known as “Hannibal” after a word scribbled on its surface, was brought into the United States in 2007 as part of a Brazilian embezzler’s elaborate effort to launder money, the authorities say. It was later seized at a Manhattan warehouse by federal investigators who are now preparing to return it to Brazil at the behest of law enforcement officials there.


I confess to being wrapped up in the reading of this book and particularly the art of art forgery Shapiro unmasks. I have often wondered why a painting that has hung for hundreds of years on museum walls and been praised for its style and beauty is not just as valuable and just as precious when it is discovered that it was not painted by one of the greats but by his apprentice. Doesn't the art remain the same. Isn't it just as valuable as art even if it was painted by an unknown? We seem to carr ...more

Besides that, there are other ways which an expensive art piece may be used to launder money. The underlying principle is this: there is no "standard answer" on how to launder money. Money laundering is more like an art than a science. As long as the whole process looks logical, reasonable and realistic, it is up to your creativity how you want to launder money with it!


Scientific research is generally held to be of good provenance when it is documented in detail sufficient to allow reproducibility.[28][29] Scientific workflow systems assist scientists and programmers with tracking their data through all transformations, analyses, and interpretations. Data sets are reliable when the process used to create them are reproducible and analyzable for defects.[30] Current initiatives to effectively manage, share, and reuse ecological data are indicative of the increasing importance of data provenance. Examples of these initiatives are National Science Foundation Datanet projects, DataONE and Data Conservancy, as well as the U.S. Global Change Research Program.[31] Some international academic consortia, such as the Research Data Alliance, have specific group to tackle issues of provenance. In that case it is the Research Data Provenance Interest Group.[32]
The most common art scam is for a scammer to make contact with an artist  and say that they want to buy some if their artwork that they saw online.  To the unwary, hungry artist this is surely great news.  What the scammer wants is for the artist to ship the art to them without paying for it. In reality, what they will be doing is that they will be providing the artist with stolen credit card numbers or with phony checks in order to make the art purchase.
In the movie-funding case, the scheme involved several participants, 10 countries, mislabeling transactions as “gifts” and “donations,” disguising the origins of the funds, and offshore shell companies. One letter stated that a transfer of $800 million from a Saudi prince to Razak was a “donation.” The head of the criminal operation used correspondent banks to transfer the funds in dollars.
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).
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.
Before addressing those questions, it is useful to consider how provenance is relevant to sales of art. Art litigation generally falls within one of three categories: disputes concerning ownership, disputes concerning authenticity, and, to a lesser extent, disputes concerning value. The provenance of a work may bear on each of those potential areas of dispute. Obviously, to the extent provenance represents a chain of title, it may bear quite directly on a dispute concerning ownership. (If “H.W. Göring, Berlin” is listed in the provenance, that is probably a red flag).3
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.
At Lowy, collectors interested in hiding their originals in the vault, whether for security purposes, to protect delicate works, or to lower the cost to insure them, can reproduce works without the help of a museum. The company employs both specially trained restoration artists and independent artists in need of a day job to conserve and replicate artworks. The process starts with an extremely high-quality print of a digital image, and then the painstaking application of clear conservators’ gel to simulate brushstrokes. Prices start at about $2,000, while frames tend to quadruple the amount.
Sometimes it is necessary to remove small bits of materials from a work and subject them to various analyses. Chemical analysis is particularly valuable in determining the pigment used because many of the paints available to the modern forger were unknown in earlier times. Today titanium, a 20th-century product, is used to make the white pigment in most oil paints, whereas white lead was the element used in the time of Rembrandt. Many ancient colours were manufactured by grinding natural minerals such as lapis lazuli for blue and malachite for green. Today cheaper synthetic chemicals are used. Some chemical tests, however, require the removal of more ancient material than is desirable. In that event a speck as small as the head of a pin can be analyzed spectrographically. From the burning of a minute sample a photographic record of the spectrum of the light emitted is analyzed to reveal the elements present and their relative percentages.
There are many ways to launder money, from the simple to the very complex. One of the most common techniques is to use a legitimate, cash-based business owned by a criminal organization. For example, if the organization owns a restaurant, it might inflate the daily cash receipts to funnel illegal cash through the restaurant and into the restaurant's bank account. After that, the funds can be withdrawn as needed. These types of businesses are often referred to as "fronts."
Edward Winkleman tells us that “transfer of title for digital art happens with an invoice. The collector generally receives a certificate of authenticity, which is required if they ever want to resell or donate the work to a museum. The artwork could indeed be delivered digitally, and payment could indeed be received digitally, but the bank records will show the transaction.”
While these laws were helpful in tracking criminal activity, money laundering itself wasn't made illegal in the United States until 1986, with the passage of the Money Laundering Control Act. Shortly after the 9/11 terrorist attacks, the USA Patriot Act expanded money-laundering efforts by allowing investigative tools designed for organized crime and drug trafficking prevention to be used in terrorist investigations.

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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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