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!
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]
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.
Like most laundering cases involving art in the United States, this one was uncovered when the work was illegally transported into the country. In 2004 Mr. Ferreira’s financial empire, built partly on embezzled funds, collapsed, leaving $1 billion in debts. A court in São Paulo sentenced him in 2006 to 21 years in prison for bank fraud, tax evasion and money laundering, a conviction he is appealing. Before his arrest, however, more than $30 million of art owned by Mr. Ferreira and his wife, Márcia, was smuggled out of Brazil, Judge De Sanctis said.

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, 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.
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.
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?)
While the detection of the careful forger may require an expert, forged literary autographs can often be detected by anyone taking the trouble to compare them with an authentic example. Many collectors have been deceived by their own credulity, because they wished to believe that they were getting a good bargain and subconsciously suppressed their critical faculty. A classic case is that of the French forger Vrain-Denis Lucas, who sold a collection of forgeries including a letter of St. Mary Magdalene, written in French on paper made in France.
American art forger Ken Perenyi published a memoir in 2012 in which he detailed decades of his activities creating thousands of authentic-looking replicas of masters such as James Buttersworth, Martin Johnson Heade, and Charles Bird King, and selling the forgeries to famous auction houses such as Christie's and Sotheby's and wealthy private collectors.[9]
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).

The innocuous nature of these copies gets overshadowed by the explosive scandals that do rock the art world from time to time. Recent headlines include the Modigliani exhibition in Genoa, which was shut down this summer after 30 percent of the paintings were alleged to be forgeries, and the Sotheby’s $10.6 million sale of a fake Frans Hals a year ago. Legally, Lowy clients are formally required to acknowledge that the piece it is a copy and will not be used unlawfully, but just in case, the firm’s contract indemnifies the company against any potential wrongdoing. “There is certainly fraudulent behavior out there,” says co-owner Brad Shar. “We wanted to make sure that we were legally protected.”
Among the forgers who have tried to make the experts look foolish is George Psalmanazar (1679?–1763). A Frenchman, he went to England where he pretended, with great success, to be a native of Formosa (Taiwan), and published a book about that island, which he had never visited. Another is William Lauder, who attempted to prove John Milton guilty of plagiarism by quoting 17th-century poets who wrote in Latin, into whose works he had interpolated Latin translations from Paradise Lost. A forgery made as a joke but taken seriously was the “Ern Malley” poems, offered to an Australian magazine in 1944 as the work of a recently dead poet. Actually it was composed by two young soldiers who wished to ridicule certain aspects of contemporary poetry.

The innocuous nature of these copies gets overshadowed by the explosive scandals that do rock the art world from time to time. Recent headlines include the Modigliani exhibition in Genoa, which was shut down this summer after 30 percent of the paintings were alleged to be forgeries, and the Sotheby’s $10.6 million sale of a fake Frans Hals a year ago. Legally, Lowy clients are formally required to acknowledge that the piece it is a copy and will not be used unlawfully, but just in case, the firm’s contract indemnifies the company against any potential wrongdoing. “There is certainly fraudulent behavior out there,” says co-owner Brad Shar. “We wanted to make sure that we were legally protected.”


As the trial nears, a few facts are certain. Rosales sold fraudulent art; after pleading guilty to nine counts that include wire fraud and money laundering, she agreed to cooperate in the investigation and is awaiting sentencing. Her boyfriend Bergantiños was arrested in Spain and remains there. Pei-Shen, who brilliantly forged work by the most lauded artists of the 20th century, is on the loose and untouchable somewhere in China.
In the late 20th century, art fraud was propelled by a rise in the popularity of art as an investment. With more collectors and museums vying for an ever-smaller number of works by noted artists or from esteemed eras in the history of art, motivations for fraud were exponentially increased. At the same time, modern science made it possible to authenticate works of art to a greater degree than at any time in the past, though even those scientific tests led at times to ambiguous results.
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