NEW YORK.- The FBI announced last night that as a result of an Art Loss Register (ALR) recovery, they have arrested Robert Mardirosian, the lawyer who tried to sell £20 million of stolen pictures. If convicted Mardirosian, aged 72, could face up to 10 years in prison. Police are searching for his son Marc after finding three unlicensed firearms and drugs including cocaine at their house.

In 1978 seven pictures including Paul Cézanne’s “Fruit and Jug” and two Chaim Soutines were stolen from the house of the collector Michael Bakwin in Massachusetts. The Grand Jury investigating the theft were unable to find sufficient evidence to charge the alleged thief who was murdered shortly after by another criminal to whom he owed money. There was no trace of the pictures until 1999 when Lloyd’s was approached to insure their movement from Russia to London for valuation and sale.

Lloyd’s underwriters contacted the ALR to check if they were stolen. The ALR negotiated on behalf of Mr Bakwin for their return. Those holding the paintings demanded $50 million while refusing to reveal their identity or the provenance of the pictures. In cooperation with the FBI the ALR negotiated an arrangement over ten months in which the Cézanne was returned in exchange for the other six pictures being transferred to the holders, who hid behind a Panamanian company and a Swiss Lawyer.

The Cézanne was subsequently sold on behalf of Mr Bakwin for £18 million at Sotheby’s in 1999. Julian Radcliffe the Chairman of the ALR continued negotiations to recover the other six paintings on the basis that they could not be sold since the agreement had been entered into under duress, was void and the pictures were still registered as stolen. The unknown holders demanded $500,000 payment which the ALR considered a ransom and would not pay. Negotiations were terminated in 2001.

In 2004 four of the stolen pictures were consigned to Sotheby’s by Paul Palanjian acting as agent for Mardirosian and Mr Bakwin’s lawyers Pierre Valentin of Withers LLP and the ALR initiated legal action in London to seize the paintings which are expected to be returned shortly. Paul Palanjian has been granted immunity from prosecution by the FBI in return for his cooperation. The ALR will pursue the recovery of the last two pictures held by Henri Klein a friend of Mardirosian’s in Switzerland.

Civil action has been initiated in the USA, UK and elsewhere to recover all of the legal and investigation costs of $3 million plus which were incurred by Mr Bakwin over 28 years of recovery efforts. A world wide freezing order is in place and costs already awarded.

US Attorney John Mitchell and the FBI acknowledged The Art Loss Register’s important role.

Julian Radcliffe Chairman of the ALR said: “The lessons of this case are clear. The ALR will pursue those who steal or trade in stolen pictures for their recovery and for all costs whether they are lawyers, agents or dealers. We have the capability to do this for as long and wherever is necessary. Anyone who touches stolen art, if they have not checked the data base, will be held to account.”