Friday, July 18, 2014 - 
2014 ARCA Sixth Annual Conference,Amelia,fakes and forgeries,James Moore,Knoedler & Company
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2014 ARCA Sixth Annual Conference,Amelia,fakes and forgeries,James Moore,Knoedler & Company
1 comment
ARCA '14 Art Crime Conference: James Moore on "The Fall of the House of Knoedler: Fakes, Deception and Naiveté"
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| James C. Moore presenting at ARCA conference in Amelia (Photo by Paula Carretero) |
by Catherine Schofield Sezgin,
ARCA Blog Editor-in-Chief
Retired trial lawyer
James C. Moore presented "The Fall of the House of Knoedler: Fakes,
Deception and Naiveté" in the first presentation of ARCA's Sixth Annual Interdisciplinary Art Crime
Conference in Amelia on June 28.
Moore
discussed how the Manhattan gallery, which had sold art since 1856 only to fall
upon hard times in the middle of the 20th century, had drifted away
from selling Old Masters and Cubist art to modern works where the competition was
intense to gain access to the art.
Facing bankruptcy by the end of the
1960s, the gallery was sold to Armand Hammer in 1971 for $2.5 million. Under Hammer's leadership, Ann Freedman was hired a salesperson, but when ownership passed to Armand’s grandson
Michael, he appointed Freedman director of the gallery with a focus on
contemporary and abstract artists such as Rothko, de kooning, Diebenkorn,
Motherwell, and Pollack.
In the early 1990s, Glafira Rosales appeared at the art gallery and showed Freedman an unknown Rothko sketch she claimed had been owned by a “Mr. X”, a closeted gay Filipino or Swiss man who had begun collecting abstract expressionist works which he had stored in Mexico – or Switzerland -- with the assistance of a New York art dealer, David Herbert. Rosales told Freeman that Mr. X had died and that his son -- identified only as "Mr. X, Jr." -- had decided to liquidate his father’s collection. And to do so, the paintings would be consigned, one at a time, to the Knoedler Gallery. Beginning in 1994, Rosales bought paintings every 3-6 months for a total of 40 works and agreed to sell them to the Knoedler Gallery for a fixed amount. Freeman would offer paintings for sale at higher prices – hanging the works in other shows by the artists, preparing write-ups, claiming that her experts had viewed the works although they had not authenticated them. In total, the Knoedler Gallery received $64 million for 40 paintings of which Rosales received $20 million.
In the early 1990s, Glafira Rosales appeared at the art gallery and showed Freedman an unknown Rothko sketch she claimed had been owned by a “Mr. X”, a closeted gay Filipino or Swiss man who had begun collecting abstract expressionist works which he had stored in Mexico – or Switzerland -- with the assistance of a New York art dealer, David Herbert. Rosales told Freeman that Mr. X had died and that his son -- identified only as "Mr. X, Jr." -- had decided to liquidate his father’s collection. And to do so, the paintings would be consigned, one at a time, to the Knoedler Gallery. Beginning in 1994, Rosales bought paintings every 3-6 months for a total of 40 works and agreed to sell them to the Knoedler Gallery for a fixed amount. Freeman would offer paintings for sale at higher prices – hanging the works in other shows by the artists, preparing write-ups, claiming that her experts had viewed the works although they had not authenticated them. In total, the Knoedler Gallery received $64 million for 40 paintings of which Rosales received $20 million.
In early 2000s, a Knoedler Gallery client
bought a work ‘by Jackson Pollack’ for $2 million but after the painting failed
authentication, the painting was returned and the purchase price refunded.
Other similar events followed -- Sotheby’s would not sell a ‘Pollack’ in 2011, and when the
owner asked for a $17 million refund, the gallery closed its doors.
The Knoedler Gallery has been named in
eight lawsuits, and the Federal Bureau of Investigation has begun an investigation
of Ann Freedman, Glafira Rosales, and Rosales’ long-time companion Jose Carlos Bergantiños Diaz, who worked in a restaurant in New York City and sold art in the Chelsea district, along with Diaz's brother. According to Rosales, all of the paintings she sold to the Knoedler were fakes and were allegedly created by a 75-year-old artist, Pei-shen Qian, who was asked to create art in the style of abstract expressionist artists for people who could not afford originals.
Before Rosales was arrested, Diaz went
back to Spain and Qian went to China. Rosales pled guilty for collecting money
and paying no income taxes (she sent the money to Spain). Rosales now faces
sentencing up to 20 years. She is cooperating with federal authorities possibly in the hope of receiving a lesser sentence. Spain has been asked to send Diaz back to the U.S. to face
charges.
Moore
posed the question of accountability:
Was Freedman actively or passively involved in the forgery scheme? No one but the buyers suing her has accused her of a crime. In fact, she sued a dealer for defamation who accused her of lack of care. Negligence (lack of care in verifying a paintings provenance) claims against dealers and galleries cannot be maintained when the parties have a contract relationship. The wording of the agreement between the parties, therefore, will be critical to the success or failure of the buyer's claim.
Moore
also discussed the relative responsibilities of the gallery, the dealer, the
expert authenticators and the buyer in fake painting claims. Ultimately, Moore noted that as of this
time, Rosales is free on bail, Freedman is running another gallery and is named
as a defendant in eight lawsuits, the Diaz brothers are hoping not to leave Spain,
and Qian is conducting art shows in Beijing.
Moore,
an accomplished trial lawyer and a Fellow of the American College of Trial
Lawyers, is also a student of art history. http://www.jamesconklinmoore.com/