Florida art scammer sentenced to over 2 years in federal prison

An undated photo provided by The United States Department of Justice of a fake Jean-Michel Basquiat work sold by Daniel Elie Bouaziz for $12 million. The Florida art dealer who promised bargains on works he claimed were originals by master artists including Roy Lichtenstein, Keith Haring and Henri Matisse has been sentenced to more than two years in federal prison for laundering money made running a counterfeit scheme, federal officials said. (The United States Department of Justice via The New York Times) by Livia Albeck-Ripka

NEW YORK, NY.- A Florida art dealer who promised bargains on works he claimed were originals by master artists including Roy Lichtenstein, Keith Haring and Henri Matisse has been sentenced to more than two years in federal prison for running a counterfeit scheme, federal officials said. The man, Daniel Elie Bouaziz, 69, owned several art galleries in Palm Beach County, Florida, through which he operated the counterfeit scheme. He was sentenced on Tuesday in U.S. District Court in Miami to 27 months in federal prison, followed by three years of supervised release, and was ordered to pay a $15,000 fine, court filings show.

Bouaziz pleaded guilty in February to one charge of money laundering on the condition that federal prosecutors drop 16 other counts, according to the documents. Neither Bouaziz nor his lawyer could immediately be reached for comment on Tuesday evening.

According to prosecutors, Bouaziz, a French and Israeli citizen born in Algeria, was in the United States on a B-2 visitor’s visa. They said the pieces he had represented as authentic works were cheap reproductions he had bought through online auctions. He was charged in June after an investigation that included the serving of search warrants at his galleries, a review of financial records and undercover purchases of what prosecutors had deemed to be fraudulent art.

According to the federal complaint, Bouaziz conducted his art dealing through three companies: Galerie Danieli, Danieli Fine Art and VIP Rentals LLC. The website for Danieli Fine Art advertises a collection from a wide range of notable artists, including Monet, Rodin, Jean-Michel Basquiat and Willem de Kooning. But counterfeit Andy Warhols were what sent Bouaziz to prison.

On Oct. 25, 2021, Bouaziz sold what he had claimed were “authentic, original Warhol pieces,” some of them “signed by the artist,” to an unwitting customer, federal prosecutors said. The customer gave Bouaziz a $200,000 down payment, which he then wired to other accounts. According to court documents, Bouaziz then took five artworks to the buyer’s house. Federal prosecutors did not immediately respond to requests for comment on Tuesday evening, but in a sentencing memorandum, they noted that Bouaziz “knew some of the pieces he sold were not genuine.” In one instance, they added, he sold fraudulent art to an undercover agent for $25,0000.

Bouaziz, they added, had won over many in Palm Beach with his philanthropy, his luxury cars and invitations to lunch and art events. But his generosity, prosecutors said, belied a darker reality. “Bouaziz painted a picture of himself that he wanted others to see and believe,” they said.

A restitution hearing is scheduled for Aug. 16. This article originally appeared in The New York Times.

https://artdaily.cc/news/157920/Florida-art-scammer-sentenced-to-over-2-years-in-federal-prison

An Auctioneer Has Confessed to Playing a Major Role in Producing Fake Basquiats Displayed at the Orlando Museum of Art Los Angeles auctioneer Michael Barzman pled guilty to lying to the FBI about creating the works.

Sarah Cascone, April 12, 2023

Installation view of the "Heroes & Monsters: Jean-Michel Basquiat, The Thaddeus Mumford, Jr. Venice Collection" at the Orlando Museum of Art, 2022. Courtesy of the OMA.

The exhibition had one of those fairytale backstories: the Orlando Museum of Art had lucked into a storage unit full of previously unseen paintings by Jean-Michel Basquiat, which it was showing to the public for the first time. Now, more than nine months after a dramatic FBI raid shuttered the exhibition “Heroes & Monsters,” which ran from February to June 2022, the truth is out. The paintings were not the work of the late street artist—whose work has sold for over $100 million at auction—but a series of forgeries by 45-year-old Los Angeles auctioneer Michael Barzman and an accomplice identified only as J.F.

On April 11, the United States attorney’s office for the Central District of California charged Barzman with making false statements to the FBI. He had previously denied both having painted the works or having had someone make them for him when speaking to the FBI in 2022. He has pled guilty to the charge, and faces up to five years in jail. “J.F. spent a maximum of 30 minutes on each image and as little as five minutes on others, and then gave them to [Barzman] to sell on eBay,” the plea agreement said, according to a statement from the attorney’s office. “[Barzman] and J.F. agreed to split the money that they made from selling the fraudulent paintings.”

The two are said to have created 20 to 30 fake works around 2012 that they attributed to the artist. Barzman, whose business was auctioning off the contents of abandoned storage units, concocted a fake provenance for the works: Basquiat was said to have sold the cardboard paintings to television screenwriter Thad Mumford for $5,000 in 1982. Decades later, Mumford was behind in rent payments on his storage unit, and its contents went up for auction. It was a compelling story, and it was one that inspired storage hunter William Force and his financial backer, Lee Mangin, to purchase the lot for $15,000. After a messy lawsuit surrounding one of its opinions, the Basquiat estate had shut down its authentication committee in 2012, making it difficult for Force and Magnin to get anyone to officially weigh in on the question of authenticity.

But the fake works nonetheless found champions in some art experts, including Basquiat scholar Jordana Moore Saggese and curator Diego Cortez, founding member of the Basquiat estate’s authentication committee who died in 2021. Both agreed the works looked legitimate (according to her affidavit, Moore Saggese in said she was paid $60,000 by the Basquiat artworks’ owners in 2017 to assess the paintings). Handwriting expert James Blanco also found that the works’ signatures were a match to that of the artist. Due to these factors, it seems that the Orlando Museum leadership was confident that everything was legitimate and the museum published an exhibition catalogue with new essays on the 25 works, and touting a 500 percent uptick in attendance driven by the show. Nevertheless, suspicion about the works arose quickly after the show opened in Orlando in February 2022. The main red flag was a FedEx logo on one of the pieces of cardboard—the company hadn’t introduced it until 1994, six years after Basquiat’s death. (The FBI’s Art Crime Team later confronted Barzman about one of the works, pointing out that one of the works had been painting over a mailing label with his name.)

The raid didn’t happen until June, less than a week before the show was set to close—but the FBI had been investigating the case for years.

Installation view of the "Heroes & Monsters: Jean-Michel Basquiat, The Thaddeus Mumford, Jr. Venice Collection" at the Orlando Museum of Art, 2022. Courtesy of the OMA.

Mumford, it turned out, had told an FBI agent back in 2014 that he had never purchased any Basquiats or kept any in his storage unit. He even signed an FBI affidavit the year before he died in 2018, admitting that “at no time in the 1980s or at any other time did I meet with Jean-Michel Basquiat, and at no time did I acquire or purchase any paintings by him.” Following the FBI’s seizure of the suspect works, the museum fired Aaron De Groft as its director and chief executive. He has not been charged with any wrongdoing. The beleaguered institution has formed a “task force” to help rebuild the public’s trust following the fiasco.

An archived version of Barzman’s auction website stated that he “specialize[d] in storage auctions, abandoned property, buying gold and silver, collectibles, Hollywood memorabilia, classic cars, vintage instruments and more,” noting that “since 2015, Michael has been a bonded auctioneer & appraiser of rare memorabilia and collectibles.”

The FBI investigation into the case is still ongoing.

https://news.artnet.com/art-world/auctioneer-orlando-museum-art-basquiat-2283954

Man Accused of Selling Faked Warhols Arrested After Wife Goes Missing

BY SHANTI ESCALANTE-DE MATTEI
January 10, 2023 2:16pm

One of the paintings Walshe sold to Revolver Gallery.

Brian Walshe, a Massachusetts man who was arrested after his wife went missing, is the subject of renewed scrutiny after the investigation into him brought back to light his alleged sales of fake Andy Warhol paintings.

In 2016, Walshe, with some assistance from his wife Ann, listed two paintings that they claimed were made by Warhol as a part of his 1979 “Shadows” series on eBay for a combined price of $100,000. According to the original complaint, written that same year by FBI special agent Kristin D. Koch, the item description of the paintings claimed that Walshe had “terribly overpaid” for the pair of paintings in a 2007 Christie’s auction for $240,000. He was offering them for $100,000 on eBay, he explained, because “it is much cheaper and because Christie’s won’t be able to auction our pieces till May 2017.”

Due to some dire financial need, Walshe was willing to offer the pieces for much less than they were worth. Walshe also wrote that the pieces were numbered and registered with the Warhol Foundation, and that they had additional provenance documents from Christie’s.

Two employees from Los Angeles’s Revolver Gallery flew to Boston, where Walshe resides, to pick up and pay for the two paintings, which they bought for a total of $80,000. One representative of the gallery waited in the car while an assistant went into the Four Seasons hotel to retrieve the paintings and hand over a cashiers check made out to Walshe’s business account.

The assistant couldn’t see the authentication stamps from the Warhol Foundation because a frame was covering the backs of the paintings. She sent a photo of the paintings to her boss, who was waiting in the car, and he approved the transaction. However, after the Revolver Gallery employees compared the pictures they had originally seen of the paintings on eBay to the works they had in their hands, they saw significant differences and demanded a refund.

In the coming months, Walshe would allegedly delay, and according to the complaint, he ended up sending only $30,000 of the $80,000 he owed Revolver Gallery. After some time, Revolver Gallery got the FBI involved.

Upon an investigation, the FBI found that Walshe was, in fact, in possession of two possibly authentic Warhol paintings that he had stolen from a South Korean friend he had made in the one year he attended Carnegie Mellon.

The FBI said that Walshe had offered to sell numerous works his friend held, including a porcelain statue from the Tang Dynasty, two Keith Haring Prints, and the two Warhol paintings in question. But after Walshe took them, his friend was never able to get back the two Warhols that Walshe had taken from him.

When Walshe posted the paintings for sale on eBay, he had allegedly taken pictures of these stolen paintings to land the deal with Revolver Gallery, but passed off two faked paintings to Revolver Gallery when it came time to sell. Although Walshe faces counts of wire fraud and other crimes, he has not yet been charged, in part because there is another case open against him that concerns whether he stole from his late father’s estate after destroying his father’s will, according to the New York Post.

Walshe’s wife, Ana, was declared missing by her company on January 4. Walshe was arrested and appeared in court on Monday after investigators found that he had violated the terms of his probation, reported Fox News.

Investigators found blood in the family basement and a damaged knife. They also found that Walshe went to Home Depot, a violation of his house probation, to purchase $450 worth of cleaning supplies and had Googled “how to dispose of a 115-pound woman’s body.” The Walshes have three young sons.

https://www.artnews.com/art-news/news/man-faked-warhols-arrested-after-wife-goes-missing-brian-walshe-1234653123/

Italian Police Confiscated a $4.2 Million Rubens Painting From a Genoa Exhibition as Part of a Fraud Investigation

A decade ago, the owners illegally exported the piece and staged fake sales abroad to boost its value, according to the Carabinieri.

Peter Paul Rubens, The resurrected Christ appears to his mother (c. 1612-16). Courtesy of the Carabinieri Tutela Patrimonio Culturale. Last week, Italian police pulled a Peter Paul Rubens painting from a Genoa exhibition, citing an investigation into the artwork’s two owners, who have been accused of money laundering and illegal exportation.

Now, according to the Art Newspaper, the 17th-century canvas has been returned to the show, called “Rubens in Genoa.” However, the probe into the owners continues, as law enforcement officials look into how they allegedly smuggled the painting out of the country a decade ago in an elaborate plot to boost its market value.

At the heart of the case is The resurrected Christ appears to his mother (c. 1612-16), a six-foot-tall painting, attributed to Rubens and his workshop, that depicts the Madonna kneeling before Christ in a cobalt blue cloak. On view now alongside 18 other Rubens works in Genoa’s Doge’s Palace, it is insured for €4 million ($4.2 million).

The artwork’s current owners acquired the artwork from the noble Cambiaso family for €300,000 in 2012, according to the Carabinieri agency for the protection of cultural heritage in Genoa.

However, just two years later, in 2014, the purchasers, along with an accountant and his son, exported the piece to Prague by claiming it was created by an unknown Flemish artist and was worth only €25,000.

They are believed to have obtained an export certificate from an accomplice who worked at the superintendent export office in Pisa. That same office was temporarily shut down in 2019 due to “irregularities” in the issuance of other certificates, the Italian newspaper Corriere della Sera reported.

The four suspects then established companies abroad to stage fake sales of the Rubens painting in an attempt to bolster its worth.

In 2015, conservators controversially removed a layer of the painting’s surface to uncover a second woman between Christ and the Madonna, likely from an earlier iteration of the composition. “The figure in question will be the subject of further investigations,” the Carabinieri explained.

That’s a safe prediction, and not just because of the legal investigation surrounding the painting. Questions over whether Rubens was indeed the artist behind The resurrected Christ appears to his mother have been raised in recent years as well.

“No Genoese source and no document attests the reference to Rubens of the painting exhibited in Genoa,” Vittorio Sgarbi, an art historian now serving as Italy’s undersecretary to the culture minister, said in a statement to La Repubblica. He alluded to the “uncertain quality of the work” and noted that the “history of the art lived for three hundred years without this improbable Rubens.”

“I invite those who have carried out the preliminary investigations, who have led to the seizure of the work, to greater prudence and rigor in evaluations, to avoid embarrassing mistakes,” the undersecretary went on. “Criminal liability cannot be assumed for a controversial attribution, deviated from the illusory and presumed market value.”

In response, the Genoa show’s co-curator Anna Orlando said that “the work is not under discussion.” Orlando pointed out that the exhibition’s other organizer, Nils Büttner, is “the highest authority on Rubens in the world.”

Taylor Dafoe, January 4, 2023 https://news.artnet.com/art-world/italian-police-confiscate-rubens-painting-genoa-fraud-smuggling-2238331

For Years, Art Dealer Georges Lotfi Helped Investigators Root Out Antiquities Traffickers. Now Prosecutors Are Hunting for Him Investigators say the tipster became too assured of his own self-importance.

Eileen Kinsella, August 9, 2022

Iphigenia & Orestes Mosaic. Image via Manhattan District Attorney


What better way to distract from criminal activity than to point the finger at others?

That’s essentially the premise of a criminal case against longtime antiquities dealer and collector Georges Lotfi, which is outlined in a 36-page felony arrest warrant issued by the Department of Homeland Security and New York assistant district attorneys Taylor Holland and Matthew Bogdanos.

Lotfi provided information to investigators for years as they pursed looted antiquities and even provided a “hand-drawn” diagram of how international smuggling networks operate. It was a tip from Lotfi in 2018 that led to the seizure of the gilded coffin of Nedjemankh from the Metropolitan Museum of Art that was eventually repatriated to Egypt the following year.

The gilded coffin of Nedjemankh. Photo courtesy the Metropolitan Museum of Art.

Investigators say Lotfi’s role as a whistleblower gave him an inflated sense of confidence that his own illicit activity would never be uncovered.

Now Lotfi, who is 81 years old, is charged with criminal possession of stolen property. A total of 24 objects were seized from him, including 23 mosaics from Syria and Lebanon and a 1,500-pound carved limestone sculpture referred to as the Palmyra Stone. The individual items range in value from $20,000 to $2.5 million, the affidavit said.

Artnet News was not immediately able to contact Lotfi for comment. But he told the New York Times: “I was fighting with them for 10 years to stop illicit trading, and they turned against me. I am not a smuggler. I am a collector.”

The address listed on the warrant is a post office box in Tripoli, but Lotfi at one time owned an apartment on Fifth Avenue so he could be close to the Met, according to the Times. (The Met’s address is 1000 Fifth Avenue, and an online search for Lotfi turned up an address at 1001 Fifth Avenue, though the associated phone number listed is not in service.)

According to the extensively detailed warrant, a copy of which was provided to Artnet News, the Manhattan district attorney’s Antiquities Trafficking Unit’s (ATU) investigation into Lotfi began “indirectly” in July 2017, when the unit applied for a search warrant to seize a $12 million marble bull head from the Met.

The head had been excavated from the archeological site of Eshmun in Lebanon amid its decades-long civil war, and was subsequently loaned to the Met. According to the warrant, Lofti was listed on loan paperwork as “the first documented possessor” of the artwork.

Palmyra Stone. Image courtesy Manhattan District Attorney.

It isn’t the only stolen Lebanese antiquity possessed by him, investigators say. Later the same year, a $10 million marble torso appeared on the market. Like the bull’s head, it had also been excavated from Eshmun during the civil war before Lotfi took possession of it. In November 2017 the ATU seized the object from his Fifth Avenue apartment after obtaining a search warrant. Both the bull’s head and the torso were repatriated to Lebanon in December of that year.

Then, in 2018, a third Eshmun antiquity with the same provenance was recovered by Lebanese customs officials from a container that Lotfi had shipped from New York to Tripoli. In an email from January that year, Lotfi told the ATU that he purchased the three objects in the 1980s from a dealer named Farid Ziade. Lotfi also told Homeland Security special agent Robert Mancene that he purchased other antiquities from Ziade during the civil war, including five of the 24 in total that were seized.

Over its years-long investigation, the ATU ”has developed additional evidence that the Defendant knowingly possessed stolen antiquities,” the warrant states.

Telete Mosaic. Image via Manhattan District Attorney

Mancene said that during his numerous interactions with Lotfi, the dealer demonstrated not only his intimate knowledge of the illegal trade in antiquities from the Middle East and North Africa, but also his “acute awareness” of the hallmarks of looted antiquities. He also knew from Lotfi that the hundreds of antiquities in his collection were scattered across across apartments in New York, Paris, Tripoli, and Dubai, as well as at several storage units in New Jersey.

Over the course of the investigation, Mancene said he learned that between 2008 and 2011, Lotfi “trafficked in Libyan antiquities; specifically, the distinctive legless funerary statues originating from the region of Cyrenaica, on the coast of eastern Libya.”

Furthermore, to facilitate selling the looted Libyan antiquities, Lotfi allegedly created a false paper trail using the Art Loss Register.

“I know, based on my experience in prior investigations, that antiquities traffickers often use the ALR to increase the value of their looted goods,” according to Mancene.

Mancene also says photographs of one of Lotfi’s shipping containers depicted objects “on a dirt ground surrounded by earth and rubble and with its surface encrusted with dirt,” a tell-tale sign of having been looted. Another photo showed mosaics on sheets of cloth which “are used to lift mosaics from the ground,” according to the warrant.

https://news.artnet.com/art-world/georges-lofti-2157763