Further, and as noted, other traditional vehicles for laundering money have become less attractive, thereby driving those who need a mechanism to launder large sums into the arms of the art world.  As we repeatedly have blogged, one of the most time-honored and relatively convenient vehicles for laundering — real estate — is under intense scrutiny and now is subject in the U.S. to the Financial Crimes Enforcement Network (“FinCEN”)’s ongoing Geographic Targeting Orders (these require U.S. title insurance companies in many parts of the U.S. to identify the natural persons behind legal entities used in purchases of residential real estate involving $300,000 or more and performed without a bank loan or similar form of external financing).
Mr. Ellis serves as Director of Business Development and Marketing of AML RightSource. He has over 15 years of experience in business development, marketing, and professional consulting within the healthcare and financial services industries. Mr. Ellis earned his undergraduate degree from Bowling Green State University and obtained his juris doctor from Cleveland State University – Cleveland-Marshall College of Law.
Nevertheless, a forgery may pretend to be no more than a copy of a genuine original. It then becomes necessary to examine the language and style in which it is written and to look for anachronisms or for statements that conflict with known authorities. This is the method of textual criticism brilliantly employed by Richard Bentley in his Dissertation upon the Epistles of Phalaris (1699), which proved that these letters, far from being written by Phalaris (a Sicilian tyrant of the 6th century bc), were in fact the work of a Greek sophist of the 2nd century ad.
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.
Meeting with the undercover agent in May 2001, Katzen suggested exporting the Modigliani and Degas out of the U.S. for resale, which could take "six months to one year," the indictment says. Katzen proposed to the agent that they build up an inventory in Europe to be marketed "creatively" and that they establish a long-term relationship in moving "large amounts," the indictment says. To assure the would-be buyer, documents were sent to establish authenticity, the indictment says.
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.

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.
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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 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.

In order to fool inexperienced buyers, unscrupulous sellers often say they have provenance or documented ownership histories that they claim confirms the authenticity of bogus art. In some cases, this concocted provenance appears to date all the way back to the original artists themselves. Before bidding on or buying any art, your job is to make sure any such provenance offered by sellers is correct, legitimate, verifiable and does in fact attest to the authorship of the art. (Problem art may also be accompanied by questionable Certificates of Authenticity. To evaluate a Certificate of Authenticity or COA, read Is Your Certificate of Authenticity Worth the Paper It's Printed On?)
You might have seen his stuff in New York’s Metropolitan Museum or in the Hermitage in Lausanne…to name just a couple.  You can also see them in the homes of the one percent. Actor Steve Martin bought this one. Beltracchi’s forgeries have also made it into art books listing the best paintings of the 20th century and have been sold in many of the world’s top auction houses.
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.
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
* 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.
The provenance is listed in chronological order, beginning with the earliest known owner. Life dates of owners, if known, are enclosed in brackets. Uncertain information is indicated by the terms “possibly” or “probably” and explained in footnotes. Dealers, auction houses, or agents are enclosed in parentheses to distinguish them from private owners. Relationships between owners and methods of transactions are indicated in the text and clarified through punctuation: a semicolon is used to indicate that the work passed directly between two owners (including dealers, auction houses, or agents), and a period is used to separate two owners (including dealers auction houses or agents) if a direct transfer did not occur or is not known to have occurred. Footnotes are used to document or clarify information.
In order to fool inexperienced buyers, unscrupulous sellers often say they have provenance or documented ownership histories that they claim confirms the authenticity of bogus art. In some cases, this concocted provenance appears to date all the way back to the original artists themselves. Before bidding on or buying any art, your job is to make sure any such provenance offered by sellers is correct, legitimate, verifiable and does in fact attest to the authorship of the art. (Problem art may also be accompanied by questionable Certificates of Authenticity. To evaluate a Certificate of Authenticity or COA, read Is Your Certificate of Authenticity Worth the Paper It's Printed On?)
Once purchased, the art can disappear from view for years, even decades. A lot of the art bought at auctions goes to freeports – ultra-secure warehouses for the collections of millionaires and billionaires, ranging from Picassos and gold to vintage Ferraris and fine wine. The freeports, which exist in Switzerland, Luxembourg and Singapore, offer a variety of tax advantages because the goods stored in them are technically in transit. The Economist magazine reported that the freeport near the Geneva airport alone is thought to hold $100 billion (U.S.) of art.
Mr. Ellis serves as Director of Business Development and Marketing of AML RightSource. He has over 15 years of experience in business development, marketing, and professional consulting within the healthcare and financial services industries. Mr. Ellis earned his undergraduate degree from Bowling Green State University and obtained his juris doctor from Cleveland State University – Cleveland-Marshall College of Law.
Federal investigators don't know exactly how much Pei-Shen Qian made on the scheme, but it was at least $65,000. He fled to China and was later indicted. In an interview with Bloomberg News three years ago, the forger explained he began painting in Shanghai, and moved to the U.S. in the 1980s. He insisted he never intended to pass his paintings off as anything other than imitations and found it incredible that anyone had taken the paintings seriously.
In an effort to make this information more publicly accessible, this list can be found here and and is regularly updated as the Museum’s research progresses. This list is also published on AAM’s Nazi-Era Provenance Internet Portal (NEPIP), a central searchable registry of objects in U.S. museums that were created before 1946 and that possibly changed hands in continental Europe between 1933 and 1945, which was last updated in 2017.
Once purchased, the art can disappear from view for years, even decades. A lot of the art bought at auctions goes to freeports – ultra-secure warehouses for the collections of millionaires and billionaires, ranging from Picassos and gold to vintage Ferraris and fine wine. The freeports, which exist in Switzerland, Luxembourg and Singapore, offer a variety of tax advantages because the goods stored in them are technically in transit. The Economist magazine reported that the freeport near the Geneva airport alone is thought to hold $100-billion (U.S.) of art.
In recent years, there has been an increased awareness of the issues surrounding works of art that were stolen, looted, displaced, or illegally exchanged during the Nazi era in Europe (1933-1945). After World War II, Allied Forces recovered thousands of artworks and returned them to the countries from which they were taken for restitution to the owners or their heirs. Nevertheless, many paintings, sculptures, and other objects entered the international art market during the Nazi era. Many of these were acquired in good faith by museums and collectors.

We take the stewardship and integrity of our collection seriously, from acquisition to deaccession, and maintain transparency about all of our professional practices. Preserving the world’s cultural heritage is of the utmost importance to collecting institutions. To that end, we publicly share our Collections Management Policy (see here) as well as our commitment to ensuring clear provenance. The donors of the deaccessioned objects or their heirs have been contacted, and none have objected to the sales. And indeed, any future acquisitions made with the funds earned through deaccessioning will acknowledge the original donor in the credit line.
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.
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).
Good solid provenance almost always increases the value and desirability of a work of art because, first and foremost, it authenticates the art. Good provenance also provides important information about and insight into a work of art's history. Unscrupulous sellers know the value of provenance and sometimes go to great lengths to manufacture or fabricate phony provenance for their art. The good news is that phony provenance is relatively easy to detect in most cases. The following guidelines will help protect you from buying art with fake or questionable provenance:
Another area of art fraud motivated by the demands of the art market involves the smuggling of works of art out of countries, especially from developing countries, where the value of the work may be poorly understood. Though smuggling is in itself a crime, art fraud may also occur when the smugglers minimize the value of the art to guardians of cultural patrimony or to customs officials. Goods thus transported are often offered elsewhere for high prices. There are sanctions against museums that buy artworks obtained in that manner, but governments of the originating country have little recourse when the objects disappear into private collections.
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