Displaying items by tag: tax fraud

Glafira Rosales, a 56-year-old Long Island-based art dealer has been arrested in connection to the scandal surrounding the disgraced Manhattan gallery, Knoedler & Company. One of many suits stemming from the ongoing Knoedler drama, federal authorities charged Rosales with tax fraud following the discovery that a collection of Modernist masterpieces, which sold for millions of dollars were actually forgeries.

Prosecutors claim that Rosales never disclosed the $12.5 million she made off of the sale. It was also discovered that she maintained a bank account in Spain where she had stashed much of her earnings from the transaction. If convicted on all counts, Rosales faces as many as 34 years in prison but based on federal sentencing guidelines, will most likely receive much less.

Rosales began selling forged works through the offices of Knoedler & Company in the mid-1990s. The works were new to the market and they were said to have come from an unnamed collector based in Zurich and Mexico City. Knoedler accepted the works and proceeded to sell them, bringing millions of dollars in revenue. After multiple experts claimed that Knoedler was selling fakes, the F.B.I. launched an official investigation. Knoedler closed in 2011 after 165 years in business. The company, which had been New York’s oldest gallery, found itself at the center of 6 lawsuits filed by clients who had purchased Rosales’ works.

While tax evasion charges have been leveled against her, Rosales still has not been charged with knowingly selling counterfeit artworks.

Known for her extravagant shoe collection, one-time Philippine first lady, Imelda Marcos, also accrued an admirable art collection during her late husband’s reign. Marcos’ former secretary, Vilma Bautisa, was indicted on Tuesday, November 20^th, on charges of conspiracy, tax fraud, and offering a false instrument for filing, all relating to artworks that had previously belonged to Marcos. 74-year-old Bautista acquired a number of important paintings from Marcos and her husband, Ferdinand, after his regime came crashing down in 1986 after a citizen revolt.

The Manhattan District Attorney hit Bautista, a New York resident, with charges that she was conspiring to sell paintings that were the legal property of the Philippine government. The District Attorney’s office claims that Bautista used false paperwork to sell Le Bassin aux Nymphéas (1899) from Claude Monet’s Water Lilies series in September 2010 for $32 million. The other works in Bautista’s possession are Monet’s L’Eglise et La Seine a Vétheuil (1881), Alfred Sisley’s Langland Bay (1887), and Albert Marquet’s Le Cypres de Djenan Sidi Said (1946). The four paintings involved in the suit once hung in a Manhattan town house used by Imelda Marcos and her husband.

Two of Bautista’s nephews were also charged but did not appear in court. Bautista pleaded not guilty and was released on a $175,000 bond.