At trial, Sotheby's says Russian oligarch was sloppy in buying art

The First Art Newspaper on the Net    Established in 1996 Saturday, May 18, 2024


At trial, Sotheby's says Russian oligarch was sloppy in buying art
The Russian billionaire Dmitry Rybolovlev looks out from his penthouse in Monte Carlo, Monaco, Sept. 18, 2018. (Benjamin Bechet/The New York Times)

by Colin Moynihan



NEW YORK, NY.- As the opening witness in a civil art fraud trial this week, Mikhail Sazonov testified that his employer, a Russian oligarch, had been tricked to overspend by a Swiss art dealer and that those markups had been boosted by the evaluations of artworks supplied by a Sotheby’s executive.

But during cross-examination Wednesday, a lawyer for the auction house barely mentioned that employee, Samuel Valette. Instead, the lawyer, Sara Shudofsky, portrayed Sazonov and his boss, Dmitry Rybolovlev, a billionaire who earned his fortune in the potash industry and the owner of Monaco’s soccer team, as overly credulous and lax in their review of their art transactions.

The lawyer began her questioning by running through a litany of claims that the Swiss dealer, Yves Bouvier, had made in emails, all of which she depicted as false and some of which described negotiations with fictitious sellers that never took place.

“At the time of these email exchanges you believed Mr. Bouvier’s lies?” Shudofsky asked.

“That’s right,” Sazonov replied.

Sotheby’s is the defendant in the trial, in Manhattan, which stems from the sale of some of the 38 artworks that Rybolovlev bought for more than $2 billion over a period of years with Bouvier’s help. A dozen of the sales involved Sotheby’s, and the trial is focusing on the sales of four specific works — a Modigliani sculpture and paintings by Leonardo, Klimt and Magritte.

Rybolovlev has said that he believed that Bouvier, who is not a defendant in the case, was acting as a commissioned consultant, assisting him in obtaining rare artworks at a good price. Bouvier has said he was operating as an independent dealer, not solely as an adviser, and was free to charge what he wanted for a work.

What is undisputed is that Bouvier purchased dozens of masterpieces that Rybolovlev had expressed an interest in for one price and then flipped them to Rybolovlev at a steep increase, at times claiming to be engaged in haggling with a phantom seller.

Sotheby’s has argued that it was unaware of any fraud and that Rybolovlev, a wealthy man with the assets to secure business expertise and legal help, has only himself to blame if he overpaid for the collection he built.

But lawyers for Rybolovlev have accused Sotheby’s of assisting Bouvier in a “breathtaking fraud,” saying that Valette, a specialist in the sale of impressionist and modern art, provided inflated appraisals and left Bouvier’s name out of transaction histories.

To bolster that assertion, Rybolovlev’s lawyers have cited the case of “Salvator Mundi,” a depiction of Christ by Leonardo, which in 2017 became the most expensive work ever sold at auction. In 2013, Bouvier bought the painting for $83 million and then sold it the next day to Rybolovlev for $127.5 million while pretending that he had bargained with an unnamed owner whom he described as “a real tough customer.”

In 2015, when Rybolovlev was becoming suspicious of him, Bouvier asked Sotheby’s for a valuation for the “Mundi.” Valette suggested to a colleague that they value the work at $125 million, but that person did not agree, according to court papers. The judge overseeing the trial, Jesse M. Furman, of U.S. District Court, has determined that Valette subsequently asked the colleague to change the valuation to 100 million euros (about $114 million).

Bouvier has repeatedly denied wrongdoing, and late last year he and Rybolovlev settled years of legal disputes with a confidential settlement in Geneva.

The trial has drawn significant interest, in part because of the anticipated testimony of a Russian oligarch, and in part because it is providing a glimpse into the opaque world of international art sales.

Sazonov testified Tuesday about contracts for the first four sales arranged by Bouvier, which listed the sellers as companies in places including the British Virgin Islands and Hong Kong. Although those companies were affiliated with Bouvier, Sazonov said he was not aware of that at the time of the purchases, believing instead that the works were being sold by third parties. He added that formal contracts were eventually dispensed with altogether after Bouvier said they slowed his efforts to arrange deals.

On Wednesday, Shudofsky, the lawyer for Sotheby’s, returned to that testimony, asking Sazonov whether one written agreement for the sale of a Picasso, which listed Bouvier as a representative of the seller, had “raised any alarm bells.” Sazonov said it had not.

Later, Shudofsky pressed Sazonov about the decision to forgo contracts after the first four sales and instead accept invoices presented by Bouvier for purported art transactions. She also asked Sazonov whether any effort had been made to verify that the amounts paid had gone to actual third-party sellers.

Sazonov repeated several times that he had not realized at the time of the sales that Bouvier himself owned the artworks, suggesting that explained why he had not done more to challenge them. But he gave a more direct answer when Shudofsky asked him whether he regretted not asking for documentation of the transactions.

“I regret it, yes,” Sazonov replied.

This article originally appeared in The New York Times.










Today's News

January 12, 2024

Setback for heirs in long-running Nazi art restitution case

The biggest ape that ever lived was not too big to fail

Goodbye, Peachtree Road: Elton John to auction 900 artworks and memorabilia

To run the British Museum, you'll get $275,000 and a host of problems

New Lyman Allyn exhibition explores works by black female landscape artist

Vancouver Art Gallery announces appointment of Carlos Yam as Chief Financial Officer

At trial, Sotheby's says Russian oligarch was sloppy in buying art

Norma Barzman, blacklisted screenwriter, dies at 103

Heritage Auctions celebrates its most successful year with total sales of $1.76 billion in 2023

Newly discovered historical treasure from assassination of President William McKinley up for auction

Elizabeth Schwaiger exclusively represented by Nicola Vassell where she is conducting 'Now & Now & Now'

Quinn's debut auction of diplomat Peter Cecere's folk and outsider art collection set for Jan. 26

The Knoxville Museum of Art announces appointment of new Executive Director

Alice Parker, composer who heard music in poetry, dies at 98

Over $4 million in grants awarded to 50 arts organizations by The Andy Warhol Foundation

Klaus von Nichtssagend to feature painted wall works by Lizzie Scott and ceramic sculptures by Keiko Narahashi

A solo exhibition at two venues 'Sonia Gechtoff: Objects on the New Landscape' at Bortolami and Andrew Kreps Galleries

"Heaven 'N' Earth" by Sayre Gomez is second exhibition held by artist at Xavier Hufkens

Latest chapter from exhibition series 'The Man Who Should Be Dead' in NY by Mexican artist Daniel Guzmán

20 looks that did the most at the Golden Globes

Hundreds of beautiful T206 cards lead off Heritage's first sports event of 2024

The saxophone master Shabaka Hutchings is on a fresh journey: Flutes

Art Goes Digital: How Technology Transforms Creativity

Art as a Subject and a Hobby l Notable Benefits

Navigating the Instagram Landscape: A Beginner's Guide to Success

Tips To Become Successful In Real Estate Investment




Museums, Exhibits, Artists, Milestones, Digital Art, Architecture, Photography,
Photographers, Special Photos, Special Reports, Featured Stories, Auctions, Art Fairs,
Anecdotes, Art Quiz, Education, Mythology, 3D Images, Last Week, .

 



Founder:
Ignacio Villarreal
(1941 - 2019)
Editor & Publisher: Jose Villarreal
Art Director: Juan José Sepúlveda Ramírez

sa gaming free credit
Attorneys
Truck Accident Attorneys
Accident Attorneys

Royalville Communications, Inc
produces:

ignaciovillarreal.org juncodelavega.com facundocabral-elfinal.org
Founder's Site. Hommage
to a Mexican poet.
Hommage
       

The First Art Newspaper on the Net. The Best Versions Of Ave Maria Song Junco de la Vega Site Ignacio Villarreal Site Parroquia Natividad del Señor
Tell a Friend
Dear User, please complete the form below in order to recommend the Artdaily newsletter to someone you know.
Please complete all fields marked *.
Sending Mail
Sending Successful