For more than 30 years, Michael Schultz operated one of Berlin's most prestigious galleries, focusing on contemporary European and Asian art and selling paintings and sculpture to Germany's rich and famous.  He also was associated with two other galleries, one in Beijing and another in Seoul and is known to have regularly participates at international art fairs in Cologne, Paris, Berlin, Madrid, Miami Beach, and New York,

But his future in the art market was thrown into jeopardy following his arrest by Germany's State Criminal Police Office or Landeskriminalamt (LKA) on October 17, 2019.  Standing accused of fraud, Shultz who was arrested at home, was released pending trial by the German magistrate due to his poor state of health. 

At the heart of the investigation is a forged work of art purportedly by the renowned German visual artist Gerhard Richter.  

The forged artwork, put up for auction at Christie's in New York, was given to a collector by Shultz as a repayment for an outstanding debt, when Shultz could not repay the original loan. The collector in turn consigned the painting for auction to Christies. 

As part of the auction house's due diligence, they in turn contacted the Gerhard Richter Archive of the Staatliche Kunstsammlungen Dresden for information about the painting and from there things ultimately began to unravel.   The original artwork by Gerhard Richter, Catalogue Raisonné: 706-2, failed to match the artwork the collector had readied for auction. 

What prompted Shultz to pawn a forged work of art so easily verified through a digital online catalogue Raisonné is curious. Richter has long been known as the "Man Behind the Squeegee" and his highly crafted abstract minimalist artworks bring top dollar on the contemporary art market as they are highly sought after.  

To create his original works Richter first applies paint in scrims, then uses a length of perspex encased in wood, which he then moves left to right, or top to bottom to create textured smears of the many layers of the still-wet thickened paint.  A faux Richter, could never (conceivably) smear in quite the same way as an original. The forger would not only need to know exactly where and in what quantity the artist had placed the starting paint layers on the artwork but he/she would also have to employ the exact same squeegee sluices, using precisely the same motion and pressure to come anywhere close to replicating the work. 

What drove Shultz to perpetuate this fraud is unknown.  Perhaps it was driven by long-standing debts, as the dealer is known to have closed his gallery on Mommsenstraße, opened in 1986 in the rich district of Charlottenburg, center of the former west Berlin.  He also opened preliminary insolvency proceedings in September through the District Court of Charlottenburg. 

Interestingly, his bad luck with Gerhard Richter didn't just start now.  In 2015 Shultz had to answer to embezzlement charges Tiergarten district court when he sold a Richter he held as collateral for another art dealer who conversely, in this instance, borrowed money from him.  When that borrower defaulted, Shultz sold the other dealer's Richter for €300,000.  Given that the sold painting was actually the property of the second dealer's wife, (and therefore not the dealer's to use as a guarantee for debt, Schultz then claimed the painting had disappeared from his gallery. When the artwork was ultimately recovered, Richter was fined €15,000.

The artist who copyrighted his mind in 2003, Jonathan Keats, questions the concept of originality in his new book, FORGED: Why Fakes Are the Great Art of Our Age (December 2012, Oxford University Press).

‘We need to examine the anxieties that forgeries elicit in us now.  We need to compare the shock of getting duped to the cultivated angst evoked by legitimate art, and we need to recognize what the art establishment will never acknowledge: No authentic modern masterpiece is as provocative as a great forgery.  Forgers are the foremost artists of our age.’

He decorated Stockholm's Tre Kroner Restaurant in the 14th-century Gothic style and recycled his Schleswig turkeys in ersatz murals for the Royal Tennis Court. Extradited to Germany in late 1956, he served his jail term and then faded into obscurity, eking out a living as a self-styled expressionist for his remaining thirty-two years.

Obscurity, not anonymity. A couple of years before Malskat died, the German author Günter Grass (a Lübeck resident) revisited the Marienkirche scandal in a novel called The Rat.

Book reviewer Malcolm Boyd for the Los Angeles Times in 1987 describes Grass' character Malskat as 'an honest man who forged cathedral artworks.'

FORGED was published two months ago by Oxford University Press. I purchased my copy from City Lights Books of San Francisco where Keats spoke in January. You can also read Keats on this subject in Art & Antiques here.

Dealers and collectors say confidence in the German art market has been shaken by the forgery scandal, described as the biggest ever in Germany, as art historians, museums and auction houses were duped by the fake pictures.

The forgers were only caught out when one buyer became suspicious and sent his picture to be examined by scientists. They discovered a paint color that had not existed at the time the work was supposed to have been produced. 

As many as 41 more paintings not included in the trial because of statutes of limitations may also be forgeries by Beltracchi. The scandal has also spawned a number of civil cases against dealers and auction houses, as well as the criminal trial. Kremer said today it is not the job of the court to try to uncover each forgery.

by Catherine Schofield Sezgin

German forgers may have used the records of a long-dead Jewish art dealer as provenance for as many as 35 second-tier French and German expressionist paintings sold through auction houses in Cologne and London which may have defrauded art collectors of more than 15 million Euros over the past two decades.

The alleged forgery activities of a German couple and their extended family and friends are detailed in a report in Der Spiegel with additional analysis by Mark Durney at Art Theft Central in October. Although only one painting has been confirmed as a fake, according to Der Spiegel, all of the paintings from two fictitious collections that claim to have been purchased through the same art dealer in Germany in the 1920 are now suspect. Many of the paintings are stamped with a fraudulent sticker trying to identify the artworks as from the Galerie Flechtheim.

Provenance of these suspected paintings may have been lifted from sales and exhibition catalogues from a Dusseldorf art gallery owned by the Jewish art dealer Alfred Flechtheim who fled Nazi Germany when his business was confiscated in 1933. Der Spiegel reported that parts of his collection and documents from his business were lost. Flechtheim, who died in London in 1937, represented Pablo Picasso, George Braque, Paul Klee, George Grosz, and Max Beckmann and other painters in the 1920s who were later deemed by Nazi officials to have produced “degenerate art”. Galerie Alfred Flechtheim held exhibitions of works by André Durain, Juan Gris, Max Ernst, Paul Klee, and Paul Cézanne in 1929; and Edzard Dietz, August Renoir, Fernand Léger, Max Beckmann in 1928. A 1926 portrait of Alfred Flechtheim by Otto Dix hangs in the Neue Nationalgalerie, Staatliche Museen zu Berlin (see image above).

Flechtheim’s heirs have tired to recover about 100 paintings by artists such as Picasso, Juan Gris, Fernand Léger, and Vincent van Gogh from German and American museums. In July 2010, the Fleichtheim heirs claimed a portrait of the actress Tilla Durieux by Oskar Kokoschka from the Museum Ludwig in Cologne (Zeit Online, translated, “He Was His Own Best Client Client,” July 8, 2010). Flechtheim’s gallery was taken over by the Nazis in 1933. Alex Vömel, the new ‘owner’, sold the Durieux portrait from Flechtheim’s private collection in 1934 for a price below the 1931 insurance value, according to the heirs’ lawyer, who also claim that there’s no record that Flechtheim received any proceeds from the sale.

In another litigation news, the heirs of George Grosz are pursuing the restitution of paintings they claim Grosz left on consignment with Flechtheim before Grosz also fled Germany in 1933.