Displaying items by tag: lawsuits

After vigorously fighting claims that they knowingly sold a string of fake Abstract Expressionist paintings totalling $60m, the now-defunct Knoedler Gallery and its former director Ann Freedman have quietly settled three of the ten lawsuits brought against them by angry buyers. The settlement terms were not disclosed.

Two of the cases against them, brought in Manhattan federal court, were closed this summer. The Manny Silverman and Richard Feigen galleries settled their suit last Tuesday, August 4.

Jewish World Congress president Ronald Lauder has publicly threatened the Kunstmuseum Bern with an "avalanche" of lawsuits if the institution accepts the collection of approximately 1,300 artworks bequeathed to it by the late Cornelius Gurlitt - stated in an article published by German weekly "Der Spiegel." The museum is currently still in the process of making this delicate decision - whether or not to accept the collection - which includes works by Henri Matisse, Max Liebermann, Otto Dix, and Marc Chagall, among others famous artists.

Gurlitt died on May 6th of this year, leaving the entire collection to the Swiss museum - but nearly 600 works from the collection are suspected to be of questionable provenance, possibly Nazi loot.

In what has been termed a “document dump”, previously undisclosed information and inflammatory allegations in two of the Knoedler gallery art-forgery lawsuits are now public for the first time. Last Wednesday, Knoedler, its former director Ann Freedman, the head of a related holding company Michael Hammer, and a former employee Jaime Andrade filed motions seeking to dismiss the lawsuits. The next day, the collectors Eleanore and Domenico De Sole and John Howard struck back, arguing that their cases must go to trial and accusing Freedman of perjury “on multiple occasions, including before this court”, a charge she vigorously denies.

More than 500 pages of legal arguments and thousands of pages of exhibits are now before Manhattan’s federal court.

A new expert appraisal of the Detroit Institute of Arts’ collection, which some creditors are demanding be sold to help pay municipal debts in the city’s bankruptcy case, has found that the works could be worth $2.7 billion to $4.6 billion.

The appraisal, commissioned by the city and the museum in advance of a federal bankruptcy trial in August, also added that such a price tag would never be attained at sale, for reasons including donor lawsuits that would delay or prevent the sale of many valuable works, weakness in the market for some kinds of paintings, and lower sale prices because of the sheer bulk that would flood into the market at once. The appraiser, Artvest Partners, an art investment firm based in New York, said that because of these factors and the notoriety of such a forced sale from a venerable public institution, the bulk of the museum’s collection might raise as little as $850 million.

Disgraced gallery Knoedler & Co. is at the center of two new lawsuits. The first suit was filed by Los Angeles’ Manny Silverman Gallery and Richard Feigen’s gallery in New York. The two dealers are asking to be repaid $1,050,000 for a forged Clyfford Still painting that was sold in a three-way transaction with Knoedler in 2000. The second suit was filed by Los Angeles collectors Martin and Sharleen Cohen, who bought two works, one by Mark Rothko and another by Willem de Kooning, both of which turned out to be forgeries. The couple is demanding to be repaid $475,000 plus interest for the two paintings.

All of the works were part of a trove of fake paintings supplied to Knoedler & Co. by Long Island art dealer, Glafira Rosales. Knoedler & Co. has been involved in over a dozen lawsuits as a result of the forged artworks it received from Rosales.

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.

165 years ago, the Knoedler Gallery opened its doors in New York and went on to help create some of the country’s most celebrated collections including those of Paul Mellon, Henry Clay Frick, and Robert Sterling Clark. Throughout the years, top-notch works by artists such as van Gogh, Manet, Winslow Homer, John Singer Sargent, Louise Bourgeois, and Willem de Kooning passed through the gallery. When the Soviet government sold hundreds of paintings from the State Hermitage Museum in Leningrad in the 1930s, they chose to work with Knoedler to sell paintings by masters like Rembrandt, Raphael, and Velazquez.

Knoedler’s exemplary past is often forgotten as the gallery’s present has been mired in lawsuits and accusations that the company’s former president, Ann Freedman, was in the business of selling fakes. Last year, Knoedler Gallery closed its doors for good.

This week, Los Angeles’ Getty Research Institute announced that it had bought the Knoedler Gallery archive. Spanning from around 1850 to 1971, the archive includes stock books, sales books, a photo archive and files of correspondence, including letters from artists and collectors, some with illustrations. The Getty was interested in Knoedler’s archive because it offers an expansive glimpse into the history of collecting and the art market in the United States and Europe from the mid-19^th century to modern times.

The archive was purchased from Knoedler’s owner, Michael Hammer, for an undisclosed amount. Meticulously preserved, the archive will be available to scholars and digitized for online research after the Getty catalogues and conserves it all.