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April 19, 2011

Tuesday, April 19, 2011 - 2 comments

Q&A with the Los Angeles Police Department Art Theft Detail

LAPD Detective Don Hrycyk, Art Theft Detail
by Catherine Schofield Sezgin
ARCA Blog Editor-in-Chief

The only full-time municipal law enforcement unit in the United States devoted to the investigation of art crimes, the Los Angeles Police Department’s Art Theft Detail, was founded in 1984. From 1993 to 2008 alone, LAPD’s Art Theft Detail recovered $71 million in stolen art. During the same period, the approximately 90 burglary detectives in the entire LAPD recovered about $64.5 million in stolen goods. Current recoveries for the Art Theft Detail total more than $81 million.

In 1992, oil paintings by Claude Monet and Pablo Picasso worth $13 million were stolen from a Brentwood ophthalmologist’s home and discovered five years later in a Cleveland, Ohio storage facility by the LAPD Art Theft Detail with the help of the Federal Bureau of Investigation (FBI).

In 1999, a handyman was arrested on a charge of grand theft for stealing 7,500 animation film cells valued at $1 million from a Sherman Oaks animation company; the suspect stole the pieces over time and sold them all over the country. The LAPD art theft unit found the art through searches on the Internet.

Detective Don Hrycyk (pronounced her-ris-sik) has worked on art theft and forgeries since 1994. He has a temporary partner, Mark Sommer, who has been filling in since 2009.

The website for the LAPD Art Theft Detail reported examples of a few art crimes:
One suspect posed as an independent art dealer visiting art galleries to obtain consignments of art to sell. After gaining the trust of a gallery owner, the suspect secreted the paintings out of the gallery during business hours without the owner’s knowledge. Three paintings were taken from the unsuspecting art gallery over the period of two years. 
In August 2008, a burglary at the home in the Encino area of Los Angeles of 9 paintings by artists Hans Hofmann, Lyonel Feininger, Chaim Soutine, Emil Nolde, Marc Chagall, Kees van Dongen, Diego Rivera and Arshile Gorkey resulted in a $200,000 reward offer for information leading to the recovery of the paintings and apprehension of the suspects. 
In 2004, a suspect, a former physician and Harvard professor, was arrested by LAPD’s Art Theft Detail after selling a fake Mary Cassatt painting for $800,000 to undercover officers. The suspect possessed numerous other fake artworks. A few years earlier, the suspect had reported the theft of an artwork by Willem de Kooning valued at $1.5 million yet determined to be a fake and still in the suspect’s possession. The suspect had moved to California following a criminal conviction for selling fake art in Massachusetts in 1989. He was also the subject of a federal civil case alleging sales of fake art in 1985. The suspect used brokers to sell art to private parties and to invest money in his art collection. He avoided major auction houses and art dealers and preyed on people less knowledgeable about fine art. 
In October 2010, a TV auctioneer who from 2002 to 2006 sold $20 million in forged art, including works falsely attributed to Pablo Picasso and Salvador Dali, was sentenced to five years in prison in a Los Angeles court. Two other conspirators were sentenced to four and seven years for claiming to sell genuine works found in real estate liquidations and forging certificates of authenticity on some artworks sold to more than 10,000 US customers through DirectTV and Dish Network.
Detective Hrycyk had previously worked in homicides and robberies. In 1997, Hrycyk and his predecessor, retired detective Bill Martin, were featured in a television show, “The Hunt for Amazing Treasure” on the Learning Channel, trying to recover $9 million in stolen artwork.

ARCA: How did you become involved in art crime investigation?
Detective Hrycyk: In the mid-1980s, I got tired of working homicide in South-Central L.A. and applied for an opening in a specialized burglary division in downtown L.A. After getting the spot I learned I would be working the newly formed Art Theft Detail. I developed an interest in art theft and art fraud investigations and took over the unit in 1994.
ARCA: What is the current focus of the LAPD Art Theft Detail Unit after more than 25 years in existence?
Detective Hrycyk: With only two detectives handling all art-related crimes in a city that is the second largest center for the visual arts in America, our focus is to be able to continue to do quality crime investigations with the resources available. Having a dedicated art crime unit has allowed us to professionalize and develop contacts in the art community that are essential to successful investigations.
ARCA: How big of a problem is art crime in Los Angeles?
Detective Hrycyk: Out of necessity, we handle not only traditional art but also a wide array of historical and cultural property, from Hollywood movie props to rare books and fossils. We just recovered a comic book valued at $1 million. When you think about it, most homes contain either an artwork, antique or collectible. Art theft is often a hidden crime because art objects are stolen all the time in routine burglaries along with cash, jewelry and other personal property. As a result, there are no accurate statistics on the prevalence of art thefts. There is no tracking of art thefts nationally. Added to this is the huge area of art fraud. Combined, these crimes keep us busy all the time.
ARCA: Is the trafficking of looted antiquities a problem in Los Angeles? What are the significant routes? Which other agencies do you work with on this problem?
Detective Hrycyk: In a city as diverse at L.A., smuggled antiquities is bound to be a problem but is primarily handled by federal law enforcement agencies that protect our borders and have international treaty obligations. Sales are often back room, private transactions. However, we often work with the agents from the FBI, DHS, ICE, Interpol and others when we receive actionable intelligence.
ARCA: Is working with international agencies important to the success of the LAPD Art Theft Detail Unit?
Detective Hrycyk: Stolen and fraudulent art often crosses international boundaries so it is important to have contacts in other countries who can work with us on difficult investigations. In a like manner, we often conduct investigations for foreign law enforcement agencies when an L.A. connection develops. It is important to convince thieves and con men that no safe haven exists for those who deal in stolen or fake art.
ARCA: What is the biggest challenge the LAPD Art Theft Detail faces in recovery a stolen work of art?
Detective Hrycyk: Finding the stolen artwork is the biggest challenge. A stolen painting sold in a private sale may hang on a bona fide purchaser’s living room wall for a decade or more before it comes up for sale again in a venue where it will come to our attention.
ARCA: What do you do with confiscated fake artworks after the suspect has been convicted?
Detective Hrycyk: We try to ensure that fake artworks never reenter the legitimate marketplace. This is easier said than done. Unlike illicit drugs and counterfeit currency, fake art is not illegal to possess. As a result, there is no consistency in how fraudulent art is disposed of at the conclusion of a criminal case. We have encountered great resistance on the part of judges to authorize the destruction of fake art and some pieces have actually been returned to suspects by the courts.
ARCA: How have you been working with the association of art dealers or other members of the art community in stemming the flow of forgeries or thefts?
Detective Hrycyk: Most of the intelligence information I receive about suspicious activities and unsavory characters comes from artists, dealers and galleries that I have established a relationship with over the years. The art community can be very closed mouth unless you are trusted.
ARCA: What piece of advice would you offer to individuals interested in pursuing a career in art crime investigation?
Detective Hrycyk: Unfortunately, there are few career opportunities presently available in the United States in the public sector. I get inquiries all the time from people who would love to investigate art crimes but at present, the pickings are slim. It is tough to break into this field. This situation is bound to change but we aren’t there yet.
ARCA: What would you most like to see the LAPD Art Theft Detail achieve in the next five years?
Detective Hrycyk: Right now, we have an open position in the Art Theft Detail that needs to be filled but we are unable to do so because of personnel shortages and budgetary considerations. With 37 years on the job, I need to find a permanent replacement that I can train before retirement. Art investigation is a specialty requiring great skill. However, there are few training opportunities in this field. I teach one of the few courses available to burglary detectives throughout the state of California.
This interview is published here with permission from The Journal of Art Crime published by ARCA.  This interview will also appear in the Spring/Summer 2011 issue of The Journal of Art Crime.  For more information or to subscribe to The Journal of Art Crime, click here.

April 17, 2011

Sunday, April 17, 2011 - No comments

FBI Announces Indictment of Chicago Art Dealers on Federal Fraud Charges for Allegedly Selling Counterfeit Limited Edition Fine Art Prints

ARCA received a charming email from a reader who follows this blog 'from time to time' who thought we might be interested in a recent investigation by the Federal Bureau of Investigation about fraudulent art work for sale on the internet.

CHICAGO—The owner and an employee of a River North art gallery and a New York man were indicted on federal fraud charges for allegedly producing and/or selling counterfeit limited edition fine art prints of renowned artists, federal law enforcement officials announced today. The charges stem from an international investigation of fraudulent artwork that became public in Chicago three years ago when federal agents executed search warrants at the Kass/Meridan Gallery (KMG), also doing business as Allegro Art, located on West Huron Street in Chicago. In March 2008, seven defendants from Europe, Florida, New York, and Illinois were charged with fraudulently producing and/or selling $5 million worth of counterfeit fine art prints. Subsequently, two additional defendants were charged. The indictment announced today brings to 12 the total number of defendants who have been charged in Chicago as a result of this investigation.
Allegedly, the fraudulent artwork has been sold for more than 15 years.  Kass/Meridian Gallery on Huron Street in Chicago has a website that offers for sale 'limited edition' works such as the Josef Albers image shown here.

Reporter Annie Sweeney for the Chicago Tribune writes about the story under "River North art gallery owner indicted in art scam."

April 14, 2011

Thursday, April 14, 2011 - No comments

Part V: The Use of High Value Art and Collectibles to Launder and/or Transfer Capital

by James A. Bond,
ARCA Class of 2011

CONCLUSION

The relationship between humankind and capital is unique and complicated. Capital in the form of M2, having both a high use and exchange value, is the oil that keeps the world of commerce working. However, this usefulness as a tool can only explain part of the relationship of humankind’s attachment to capital in the form of M2. While M2 may pay the bills, the enjoyment and utility of capital in its other forms, particularly high value art and collectibles, has found a particular niche in the human psyche. Charles Hill, writing about the wealth of nations, aptly conveys why this has happened.

You can regard art as economic added value...Purely economic, political, and social history add narrow tunnel vision dimensions to our societies. Art, architecture, music, and literature, within and outside religious contexts, all add wider dimensions. Our civilizations reflect high culture as well as monetary wealth.

Over the last three decades, the ‘added value’ Hill referred to has come to represent different utilities for different segments of the population. For Japan, it was a signal to the world that their nation was back as a world leader. The baby boomers utilized it to announce their arrival as a type of scorecard in the game of intergenerational rivalry with their parents, purchasing art both for the enjoyment of ownership and as an investment. Criminals came to recognize it as an alternative way to launder M2.

This subtle change in perception of the utility of different types of capital has been fostered by globalization that provided some with excess capital, which in turn acted as a catalyst for the art markets. The world is just now beginning to feel the effects of the developing middle classes in Asia who, in addition to wanting to be rich, also want the trappings of wealth that high value art and collectibles represent. As the nations of the world restructure their economies in response to the 2008-2009 financial crisis the amount of capital available and how it will be distributed will cause people to adjust so that they can protect their net worth.

Crime and the proceeds from its activities will always be seeking new ways to convert illegal money. Because of government response to drugs and the terrorist threat, the financial industry, which was the traditional means for money laundering, has been severely constrained. As early as 1998, because of the tightened banking regulations, criminals began utilizing property, art, or gold markets to launder money. Crime and the money it produces will always be present. With the traditional channels in the financial sector fairly well constrained other venues will be tested including but not limited to high value art and collectibles.

Little direct evidence was found to substantiate this papers hypothesis that high value art and collectibles have been used to transfer and or launder money. Much anecdotal speculation exist today, as it was when Conklin wrote Art Crime in 1994. As pointed out previously the art market thrives in the shadows and is protective of its customers who, in the main, want to remain anonymous. Auction houses, insurance companies, stamp and coin collectors, and gallery owners were loathe to discuss whether this type of capital transfer has, has not, or is taking place.

Several factors however point to the possibility that capital in a form other than M2 will be increasingly utilized in the future. First, the traditional venue through financial institutions has become restrictive and expensive. Illegal capital will always be around and will always need a way to be laundered. Second is the fact that it has been used in the past. Third is the opaque nature of most of the transactions and the lack of regulations. The final factor is the never-ending desire for humankind to maximize and protect net worth from taxation and economic cycles and the unrelenting quest by criminals to make dirty money clean.

April 13, 2011

Wednesday, April 13, 2011 - No comments

LAPD Art Theft Detail Investigating the recovery of Nicholas Cage's rare comic book featuring the first appearance of Superman (Action Comics #1)

Action Comics #1 (Courtesy of http://xroads.virginia.edu/~ug02/yeung/actioncomics/cover.html)
by Catherine Schofield Sezgin
ARCA Blog Editor-in-Chief

Detective Don Hyryck with the Los Angeles Police Department's Art Theft Detail kindly emailed ARCA today his responses for a Question & Answer column to be published in to the next issue of The Journal of Art Crime although he has been handling the recent case involving a rare Superman comic book stolen from the actor Nicholas Cage in 2000.

Richard Winton for the Los Angeles Times wrote today here under a headline "Nicholas Cage's national treasure recovered". The 1938 Action Comics No. 1, stolen from the actor's home more than ten years ago, features the first appearance of Superman. Winton reports that the LAPD Art Theft Detail is investigating the reappearance last month of the $1.5 million comic book from a storage locker in the San Fernando Valley:
Hrycyk did not identify the man who claims to have discovered the rare comic book after buying the contents of an abandoned storage container at auction. The veteran art detail detective said he's still checking out the story of the man, who has been unable to identify the exact place from where the comic came. 
"He claims he doesn't know the exact storage locker," Hrycyk said.
 ARCA will continue to follow the adventures of Detective Hrycyk and the LAPD Art Theft Unit both on this blog and in the biannual Journal of Art Crime.  Stay tune for our next edition...

Wednesday, April 13, 2011 - No comments

Part IV of V: The Use of High Value Art and Collectibles to Launder and/or Transfer Capital

by James A. Bond,
ARCA Class of 2011

EXPROPRIATED ART

Corporations with a dominant shareholder have the freedom to use company funds to finance art acquisitions for their personal enjoyment. If the corporations encounter financial difficulties, the artworks are sold to satisfy creditors or they may be expropriated by the dominant shareholder, which happened in the Parmalat bankruptcy in Italy. Mr. Calisto Tanzi, CEO of Permalat, took a small company and grew it into a large corporation. Mr. Tanzi was the dominant shareholders and had a love of art and used his corporations to purchase art. The Parmalat bankruptcy is an extreme example of how family controlled businesses—Mr. Tanzi’s family held controlling interest in Permalat—through expropriating assets can attempt to transfer capital.

When the Parmalat company collapsed under almost $20 billion in debt in 2003 Mr. Tanzi, the company founder, was ask if he had hidden any assets to which he replied:
I don’t have even one lira; I’m not talking about a euro, not even an Italian lira.
This statement was probably true in the sense that Mr. Tanzi had no capital in the form of M2 since both he and his corporation had declared bankruptcy but he was not without capital. Six years later the truth of the matter was revealed when over $130 million in art belonging to Mr. Tanzi was seized from the homes of relatives and friends. Some of the artwork had been offered for sale.

OTHER

To successfully transfer money in a form other than M2 the medium chosen must have an exchange value and, ideally, a personal value. How easily this conversion takes place, and the value ascribed to the transaction, will be determined by these two characteristics. People collect everything. eBay, the internet auction site, sells or has sold just about any physical object, in exchange for M2. Craigslist in addition to selling items and services for M2 also list objects for objects, objects for services (and vice versa), as well as services and objects for M2. With the internet an international market for anything with an exchange value can be sold, auctioned, or bartered and the higher the personal and exchange value it has the higher will be the redemption value in whatever form chosen. The bringing together of buyers and sellers anonymously has expanded the market for physical items and services and the ability to transfer capital. Recently a rare comic book sold for $1.075 million from an anonymous seller to an anonymous buyer. The seller had purchased the comic book for $100 forty years ago yielding him a 269% average annual return on his investment.

VI. Legal Aspects

The regulations and laws governing the movement of capital vary by country and the type of capital. Capital in the form of M2 is highly regulated because the drug trade and terrorism often utilized this type of capital because of its high exchange value. The laws regulating the movement, sale, or purchase of different forms of high value art, collectibles, or antiquities vary significantly by the type of art and by country. Laws governing high value art in the form of antiquities evolved during the twentieth century as nations and the world came to value the cultural heritage their antiquities represented. Nations that saw their antiquities expropriated, because or war or colonization, enacted laws in response to importing/exporting particularly of antiquities. Restrictions on the movement of high value art and collectible has been dependent upon the nation’s stock of art capital, economic well being, system of governance, and judicial sophistication. In 1970, UNESCO passed the Convention on the means of Prohibiting and Preventing the Illicit Import, Export and Transfer of Ownership of Cultural Property, which was signed by over 110 nations and ratified by seventy. This document became the locus for other nations to pass new laws as the U.S. did in 1979 with the Archaeological Resources Protection Act of 1979. In 2003 the U.K. passed Dealing in Cultural Objects (Offences) Act of 2003 pertaining to tainted cultural objects. In 1995, 30 countries signed the Unidroit Convention on Stolen or Illegally Exported Cultural Objects. Selling countries-like the U.K., France, Germany, and Italy-recognized the loss of art capital and cultural heritage and attempted to regain some measure of control through import/export restrictions and customs regulations. Italy has done a particularly good job in this regard. Purchasing countries, who were new accumulators due to a robust economy or a paucity of indigenous art, like the U.S., Japan, Russia, and China, or small nations like Switzerland, were happy to see their art capital increase.

It is not within the scope of his paper to define by country the cornucopia of laws and regulations relating to the importing or exporting of antiquities and high value art and collectables for they are too numerous and varied and are often politicized. The result has been the creation of an ever changing and fluid market whose confidentiality code and opaqueness is unique and has served to protect both the customers and dealers. Few industries that have revenues in the billions of dollars operate with as little oversight and accountability. The world art market is virtually unregulated and is thus an ideal venue for anonymous capital movement.

April 12, 2011

Tuesday, April 12, 2011 - No comments

Part III of V: The Use of High Value Art and Collectibles to Launder and/or Transfer Capital

by James Bond, ARCA Class 2011

STAMPS

An alternate and little talked about venue for capital transfer is the use of rare stamps, a pastime the U.S. Government says has 20 million collectors. Stamps are an ideal venue for the transfer of capital because they are highly portable and convertible with collectors all over the world who are highly private. In an effort to obtain information about the use of stamps to transfer capital a Brooklyn dealer was called and after telling him the thesis topic was ask if he knew of any stories relating to the topic and if he could offer advice as to how to research the topic on the internet. His response to all questions and his only answer to both questions was two utterance of the word No. Taxation of profits from stamp collecting has proven difficult according to Mr. Robert Scott, director of the stamp department at Sotheby’s in New York who said:
That’s why there is a great deal of anonymity in stamp collecting.
Mr. Herman Herst Jr. an author and collector of stamps for over seventy years gave the following assessment:
[Stamps are] …a lot easier to sell than jewelry…. You can get them out of the country and take them to Germany, Switzerland, no questions ask. The same thing getting them here. It is about [the] one international commodity that ignores national laws…Gold you need a license to import it in any quantity. Bring diamonds in and you’ll pay big duty. Real estate, you can’t move.
This purported ability to move freely and invisibly around the world takes on added significance when the value of some of the rare stamps, like the values of some of the old master, is considered along with their portability. While their relative value does not rival that of the art market, their portability and relative invisibility is a distinct asset. An anonymous collector purchased the world’s most valuable stamp, Treskilling Yellow, for $2.6 million in 1996. In 2009 the Heritage New York Stamps Auction had total sales of over $1.8 million with the Rare and Choice stamps commanding prices from $30,000 to $10,000. Heritage Auctions has annual sales of more than $600 million. A ready market for the acquisition or sale of stamps is available in Europe through private dealers and auction houses. The largest stamp auction in the world is held at the Rapp auction house in Switzerland. This is significant in relation to transferring capital because the Swiss do not consider tax evasion a crime.

Another method used during WWII was to place rare, cancelled stamps on envelopes that were then exchanged for goods and services when the person carrying them reached their final destination.

PUBLIC PHILANTHROPY

During the first half of the twentieth century, wealthy art collectors established museums to display their collections but this began to change when governments started allowing tax deductions against income for the donation of artwork to designated non-profit, charitable, or religious organizations. This was beneficial even for small collectors who were too small to set up their own non-profit foundation. The amount allowed for deducting donated art varies according to politics and the revenue needs of each country, but generally falls in the 20 to 50 percent range. The ‘golden egg’ principle articulated by Marx can be manifest if a donated work of art has appreciated, for the deduction is computed using the fair market value of the object irrespective of its cost. Thus, art capital becomes translated into M2 which is deducted against income which lowers tax liability thus increasing net worth. In effect tax deductions for donated art become a type of private philanthropy as explained by R.T. Naylor:
U.S. museums [now] rely almost exclusively on what now passes as private philanthropy…In other words ‘private philanthropy’ in modern North America is just a back-handed form of state subsidy in which the government cedes to a rich private citizen the right to not pay a certain amount of taxes, the privilege of deciding which charitable, religious or educational causes gain the benefit, and the power to dictate just how the endowed institutions will use the bequest.

April 11, 2011

Monday, April 11, 2011 - No comments

Part II of V: The Use of High Value Art and Collectibles to Launder and/or Transfer Capital

James A. Bond
by James A. Bond,
ARCA Class 2011

THE GROWTH OF CAPITAL

The quantity of each type of capital varies over time due to factors specific to each type of capital. M2 varies with the growth of each country’s economy, the phase of the business cycle, productivity, government spending, level of taxation and debt, entrepreneurial success, and the amount of money laundered within each country. A unique feature of M2 is that governments can cause M2 to increase, as the U.S. and many other nations have recently done to stimulate their economies through funding various programs or, cause M2 to contract, when they fear inflation by raising interest rates, thus pulling money back out of the economy. The amount of M2 can also be increased by the introduction of illegal capital laundered through various schemes.

Art capital however, is always increasing as new art enters the market and it moves with greater freedom and less restrictions than that placed on M2. How capital, in the form of M2 or art, is transferred, the reasons driving the transfer, and the type of capital class chosen to launder or transfer capital is an area of inquiry that will be examined in this paper.

CAPITAL MIGRATION

The movement of capital within any nation can be dichotomized as either legal or illegal. Traditionally the illegal movement is referred to as money laundering which has a specific legal meaning defined under U.S. Code. The President’s Commission on Organized Crime described money laundering as:
The process by which one conceals the existence, illegal source, or illegal application of income and then disguises that income to make it appear legitimate.

INTERPOL’s working definition is similar:

Any act or attempted act to conceal or disguise the identity of illegally obtained proceeds so that they appear to have originated from legitimate sources.

The use of high value art and collectibles to launder capital has its own set of rules that are less stringent and vary greatly. This should be attractive, especially for criminals trying to launder drug money which has a risk based associated cost of 7 to 10 percent or higher. The value of M2 is its face or exchange value and has no personal value while art has an exchange value and may have a personal value thus giving it a potential for an easier reintegration when the exchange from art capital to M2 occurs.

It is impossible to tell exactly when high value art and collectibles first began to be used to launder capital in the US. One early and interesting cases was in 1982 when the Drug Enforcement Agency (DEA) arrested a man for a drug related charge and confiscated his assets (considered to be the proceeds of the drug sales). Included in the assets were 273 Tiffany glass works and art nouveau objects. The man had been using the lamps and nouveau artwork to pay for his drug purchases. The DEA sold the lamps and artwork through Sotheby’s in New York netting over $1 million.

When thinking about the utility of high value art and collectibles to transfer capital it is helpful to distinguish between fungible and non-fungible items, which helps explain the difference between art capital and M2. A fungible item is not unique but may represent wealth, a concept recognized under Roman law. M2, money, is a ‘thing’, not unique, but does represent a type of wealth. Art however is unique but it too represents wealth, but a wealth with a different value. Both fungible and non-fungible items can have different types of value: use value and exchange value.

M2 has a high use and exchange value because of the many ways it can readily fulfill human needs and desires while art can have both an exchange value—the value for which it can be exchanged—and a personal value but little use value. This personal value can create wealth greater than the recognized exchange value. This subjective connection with personal property, which can translate into a higher exchange value than the use value of M2, is an overlooked aspect of utilizing art and high-end collectibles to transfer capital, especially if the art is one of a kind. When the Japanese began their tsunami of acquisitions in the late 1980s they often overpaid because they attached a type of personal value at a national level as a signal that Japan had returned from the ashes of WWII.

Europe with its centuries of artistic productivity, economic turmoil, and conflict, has been the source of many stories of how people in transition have utilized high value art to transfer capital. Jews began fleeing Antwerp and Amsterdam in the early 1930s and setting up exchanges in Tel Aviv (1930) and New York (1931). Diamonds were smuggled out by hiding them in the hems of clothing and as fillings in teeth.

April 10, 2011

Sunday, April 10, 2011 - No comments

Part I of V: The Use of High Value Art and Collectibles to Launder and/or Transfer Capital

James A. Bond
by James A. Bond, ARCA Class 2011
"Capital is money, capital is commodities. By virtue of it being value, it has acquired the occult ability to add value to itself. It brings forth living offspring, or, at least, lays golden eggs." 
“Capital is that part of wealth which is devoted to obtaining further wealth."
For both Karl Marx and Alfred Marshall their understanding and conceptualization of capital evolved during the industrial revolution in the mid 19th century as nations and individuals began the struggle to come to terms with the uses and nature of this new instrument called capital. During this period, capital came to be recognized as another pillar of capitalism and was becoming more integrated into the economic equation that heretofore had focused primarily on land and labor. As can be seen, especially in the quote from Marx, capital was considered unique. It was able to replicate itself when it began to bear interest and create wealth by combining with other assets to produce a new product, the final value being greater than the sum of its parts. Over time economist began to see that there existed many types of capital other than the monetary capital or M2, the traditional measure of the actual supply of money in each country. Today’s economists recognize that there are different categories of capital that can provide opportunities for individuals and businesses to transfer, protect, and nurture this unique economic instrument that Marx described with its “occult ability to lay golden eggs.”

Capital is productive either asleep or awake. It provides the incentive for capitalism, the reward for ingenuity, and a measure of where we are as an individual or nation. It also provides a measure of where we have been. Some types of capital are malleable, being easily morphed from one form to another virtually anywhere on the planet. This ability to maintain value in various forms has made it valuable to individuals and companies when capital needs to be transferred, or laundered as a criminal endeavor. In this age of globalization and slowly increasing prosperity, it could become a more widely recognized tool as businesses, individuals, and criminals seek alternative means to launder or transfer capital in order to protect their net worth and standard of living.

Every nation has capital of different quantities and different types, as does every individual. The word capital when used in a financial context is invariably conceptualized in monetary terms represented by the symbol M2. However, other types of capital exist and can be corporeal or incorporeal. One of the most important types of incorporeal capital existing within each nation is its intellectual and human capital, which exist alongside a form of corporeal capital represented by natural resources like minerals, energy, and water that derive from the land.

Art capital, existing in the public domain at museums, universities, and government repositories, represents a significant part of national and international wealth and is frequently overlooked as a type of capital because it is thought of in terms of public art. However, art capital exists in varying quantities in all nations as combination of public and private art and collectibles, the percentage mix affected by laws and the relative wealth and age of the nation. The United States, being a very young nation, had little indigenous art, which meant the great portion of art wealth had to be purchased by either institutions or individuals.

Art capital in the public domain represents only a small fraction of the total art capital within each nation. The amount of art capital held privately by the public will never be known, not only because it is privately held, but also because a true value for each piece can only be determined if it is ever sold and the price made public, which is rare for private sales. This is not an unusual occurrence in the art world where 70 percent of art sold at auction is sold anonymously. The price then dependent upon the art fashion cycle, supply and demand, and the world economy.

The fact that there is no complete record of the type and value of the private art within each nation is an important element to consider when evaluating the uses and utility that art capital represents for each nation and the individual. This invisible yet ubiquitous quality coupled with the relative ease of monetization gives high value art and collectibles a unique cachet in the world of capital.

High value art and collectibles have been and will continue to be used to mask capital appreciation and assist in the discrete transfer of capital while at the same time providing a safe haven. This is especially true in the current age of globalization and the increasing transnationalization of crime. Specific events like 9/11 and the financial crisis of 2008-2010 have caused governments to change the way M2 is regulated opening the door to other venues of capital movement. This happens for a variety of reasons including escaping taxation, the laundering of money, to decrease tax liability, and protect accumulated wealth for both individuals and businesses. This trend will surely be exacerbated in coming years for the following four reasons. 
1) Governments will continue to refine currency transaction laws governing the movement of M2 to further restrict funding for terrorism and control the profits generated by transnational crime. 
2) New sources of revenue will be needed by governments to replace the revenue lost in the wake of the 2008-2009 financial crises and to fund entitlement programs that will be fully populated in this decade as the baby boomers retire. This will be an ever-growing problem for many nations for a variety of reasons including; underfunded entitlement programs, immigration policies, national demographics, and excessive national debt service requirements. 
3) The risk of inflation, which always realigns capital allocations. 
4) The process of adjusting to an evolving world order, which will require integrating an ever more prosperous and populous India and China and their growing middle class as they begin to accumulate assets and enjoy their new wealth.

Sunday, April 10, 2011 - ,, No comments

ARCA 2011 Student James Alex Bond on "The Use of High Value Art and Collectibles to Launder and/or Transfer Capital"

James A. Bond will be attending ARCA's Postgraduate Program in International Art Crime and Cultural Heritage Protection Studies this summer in Amelia. He earned a Bachelor of Science in Textiles from Georgia Institute of Technology; a Master's of Business Administration in Marketing & Finance from Georgia State University; and a Master's in Science in Global Affairs, Security from New York University. A former Special Agent with the United States Air Force, Mr. Bond has also owned three construction companies. He sold his companies and retired in 2006 to return to school for the Global Affairs program at NYU.

Of course, the ARCA blog couldn't wait to interview him and read his paper, "The Use of High Value Art and Collectibles to Launder and/or Transfer Capital," of which has been adapted for a six-part series for this blog.
James A. Bond
ARCA blog: What about the ARCA program attracted you?
Mr. Bond: Diversity of subjects covered, quality of professors, mission of ARCA, and of course the fact it was being taught in Italy. 
ARCA blog: What would you like to do after you have completed your studies? 
Mr. Bond: Start an insurance-security business focusing on private art/collectibles collections. 
ARCA blog: What area of research do you anticipate following as part of the program? 
Mr. Bond: Insurance for private collections and traveling museum exhibits. 
ARCA blog: I enjoyed reading your thesis. Please tell our readers what drew you to this subject and what surprised you about your research and the material? 

Mr. Bond: In the summer of 2009 I was taking a Transnational Crime class as part of my Global Affairs curriculum at NYU and we all had to make presentations on some aspect of Transnational Crime. One of the students did her presentation on art crime and mentioned the New York Times article about ARCA's Postgraduate Program in Art Crime. With my background in security I knew that would be my next educational experience.

When I wrote my thesis for my MS in Global Affairs I wrote on "The Use of High Value Art and Collectibles to Launder and/or Transfer Capital". Being in New York and living in the financial district during the chaotic fall of 2008 and then watching Greece and Ireland suffer sovern debt problems got me thinking about how to best preserve capital and move it if the need arose.

I interviewed many people from FBI agents (3) to collectors, gallery owners, and people in finance. I was surprised at how unwilling gallery owners, collectors were to talk about the concept (read in my thesis about the NO, NO answer the stamp collector gave me) while on the other hand people in security and finance grasp it readily.
The ARCA Blog will begin today to run a series of posts on Mr. Bond's thesis.

April 8, 2011

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Upcoming Seminar: World War II Provenance Research Seminar "A New Era of Collaboration and Digitized Resources"

National Archive
"A New Era of Collaboration and Digitized Resources", a World War II Provenance Research Seminar, will be held from May 6 to May 7 at the United States National Archives in Washington, D. C.

This seminar presents new resources and strategies for provenance research, emphasizing current international collaborative projects and introducing newly accessible electronic tools. The seminar is sponsored by the United States National Archives, the Association of Art Museum Directors, the American Association of Museums and the Smithsonian Institution, with additional support provided by The Samuel H. Kress Foundation.

The morning session on May 6, "INTERNATIONAL PORTAL FOR NAZI-ERA CULTURAL PROPERTY RECORDS", will include a welcome from James Hastings, United States National Archives, and Kaywin Feldman, Association of Art Museum Directors. Introductory remarks will be made by Jim Leach, National Endowment for the Humanities, and Lynn H. Nicholas, Independent Scholar and author of "Rape of Europa." The morning presenters consist of Rebecca Warlow, United States National Archives; Hans-Dieter Kreikamp, Federal Archives, Berlin; Caroline Kimbell, National Archives, London; Anne Webber, Commission for Looted Art in Europe, London; and Kyrylo Vyslobokov, Archival Information Systems, Kyiv. The subsequent discussion will be moderated by Nancy H. Yeide, National Gallery of Art, and Victoria Reed, Museum of Fine Arts, Boston.

The afternoon session, "INTERNATIONAL RESOURCES AND COOPERATIVE PROJECTS FOR NAZI-ERA CULTURAL PROPERTY RECORDS," will include presentations by Michael Franz and Andrea Baresel-Brand, Coordination Office for Lost Cultural Assets, Magdeburg; Marc Masurovsky, Independent Historian, Washington, DC; Patricia Kennedy Grimsted, Harvard Ukrainian Research Institute, Cambridge; Christian Fuhrmeister, Zentralinstitut für Kunstgeschichte (Central Institute for Art History), Munich; Uwe Hartmann, Bureau for Provenance Investigation and Research, Berlin; and Wolfgang Schöddert, Ferdinand Möller Archive, Berlinische Galerie, Berlin. The discussion will be moderated by Jane Milosch, Smithsonian Institution, and Christian Fuhrmeister, Zentralinstitut für Kunstgeschichte.

On Saturday, May 7, the morning session, "ARCHIVAL RESOURCES FOR PROVENANCE RESEARCH, PART I" will be introduced by Louisa Wood Ruby, The Frick Art Reference Library, New York, with presentations by Jona Mooren, Nederlandse Museumvereniging (Netherlands Museums Association), Amsterdam, and Rijksbureau voor Kunsthistorische Documentatie (Netherlands Institute for Art History), The Hague; Marisa Bourgoin, Archives of American Art, Smithsonian Institution; and Michelle Elligott, Museum of Modern Art Archives, New York. The discussion following will be moderated by Laurie Stein, Smithsonian Institution, and Sarah Kianovsky, Harvard Art Museums, Cambridge.

The afternoon session, "ARCHIVAL RESOURCES FOR PROVENANCE RESEARCH, PART II," will include presentations by Christian Huemer, Getty Research Institute, Los Angeles; Megan Lewis, United States Holocaust Memorial Museum, Washington, DC; and Anneliese Schallmeiner, Commission for Provenance Research, Vienna. The discussion following will be moderated by Nancy H. Yeide, National Gallery of Art, and Laurie Stein, Smithsonian Institution. "New Projects and Resources" will be presented by Helen Schretlen, Nederlandse Museumvereniging; Dorota Chudzicka and David Hogge, Freer Gallery of Art and Arthur M. Sackler Gallery; and Nancy H. Yeide, Kress Collection Provenance Research Project, National Gallery of Art. Concluding remarks will be by
Lynn H. Nicholas.

The seminar is for curators, registrars, provenance researchers, and all those inerested in the processes of archival research. The Samuel H. Kress Foundation offers a travel stipend on a first-come, first-served basis to museums with Kress Collections. For more information about the seminar, visit: http://ww2provenanceseminar.wordpress.com/.

Friday, April 08, 2011 - ,, No comments

Revisiting the musée d'art moderne de la ville de paris: site of the theft in May 2010 of more than $100 million in paintings

Neighbor's graffiti
Interior view of windows


Last month in Paris, I revisited the musée d'art moderne de la ville de paris for the second time since the robbery of five paintings by Picasso, Matisse, Braque, Léger, and Modigliani on May 20. Last July the museum was humid and bolts on the interior metal shutters seem to have been replaced in at least one window. I speculated on the theft on the ARCA blog here. This March, the amount of graffiti surprised me. The apartment building next to the museum sported new graffiti unusual for this location.  Skateboarders outside the collection played amongst graffiti-marked statutes.  More prominent museums in Paris visited the same week did not exhibit signs of graffiti. Behind the museum, along the Seine and in view of the Eiffel Tower, graffiti covered the doors of basement entrances underneath the balcony the thief may have used to gain entrance before smashing the windows, cutting the paintings out of their frames and disappearing without notifying any security guards. Nothing has been published about the progress of the investigation and the paintings are still missing. -- Catherine Schofield Sezgin, ARCA Blog Editor-in-Chief

Graffiti marks statues outside the museum
Rear windows and balcony along the Seine
Graffiti marks basement doors of museum

April 7, 2011

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The International Institute of Social History launches unique online survey of the record of wartime cultural plunder and retrieval

Reconstructing the Cultural Record of Nazi Plunder: A Survey of the Archives of the Dispersed Einsatzstab Reichsleiter Rosenberg (ERR)
by Patricia Kennedy Grimsted

One of the main organizations involved in Nazi looting of cultural property in occupied Europe during World War II was the Einsatzstab Reichsleiter Rosenberg (ERR), a special operational taskforce headed by leading Nazi party ideologue Alfred Rosenberg. Patricia Kennedy Grimsted describes in this comprehensive overview the archiveal remains of the ERR, as found in 29 repositories in nine countries - from Washington and Brussels to Moscow and Kiev. The detail with which the ERR documented the art, archives, books, and other Judaica it plundered has proved essential for the recovery of cultural valuables after the war and their return to victims or heirs.

This Survey is the first guide that offers a comprehensive overview of documents generated by the ERR as well as records by postwar agencies seeking to return the ERR loot. The publication contains numerous links to the growing number of online information available on the ERR.

The publication was realized by the International Institute of Social History, in cooperation with the NIOD Institute for War, Holocaust and Genocide Studies, with generous support of the Conference on Jewish Material Claims Against Germany (Claims Conference).
Link to the online publication: http://www.iisg.nl/publications/errsurvey/

April 5, 2011

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ARCA 2009 Student: Michelle Edelman on art crime history and provenance research as an investigative tool

Michelle Edelman
by Catherine Schofield Sezgin, ARCA Blog Editor-in-Chief

Michelle Edelman attended ARCA’s summer program in art crime studies in Amelia, Italy, in 2009. A native of San Francisco, Michelle currently lives in New York City. She speaks French, Spanish and Italian – useful languages in her studies at Northwestern University in European Studies, at University of Oxford studying English and French literature, and at the Courtauld Institute of Art studying the history of art for her master’s degree. She is currently investigating opportunities to work in the insurance industry specializing in art protection.
ARCA blog: Michelle, what is your favorite period of art and how did you get interested in studying art crime?
Ms. Edelman: My favorite period of art is the 19th century and more specifically Victorian painting, which is what I did my masters in. I've always had a passion for art history and a love of mysteries. Studying art crime seemed like a perfect combination of my two interests. I particularly enjoyed learning about Adam Worth, nicknamed the Napoleon of Crime, who was a 19th century art thief famed for stealing Thomas Gainsborough's "Georgina, the Duchess of Devonshire." Adam Worth was an international thief who had both Scotland Yard and the American Pinkertons hot on his trail. It was a classic cat and mouse game between Adam Worth and William Pinkerton. In the end, William Pinkerton recovered the painting. And to put an even neater bow on the story, Adam Worth's son ended up working for the Pinkerton Detective Agency. Ben Macintyre's book "The Napoleon of Crime" was one of the many great art crime books I was exposed to while on the ARCA course.
ARCA blog: What did you find most valuable in your ARCA experience?
Ms. Edelman: Getting to meet with and learn from so many experts in the field was invaluable. Art crime study and investigation is a small and tight knit field but is such an important one to promote because the impact of art crime is wide ranging. From Nazi looted art, to forgeries, to excavation robberies, cultural heritage is being endangered, the black market is being fed, and crime in general is prospering. 
It was such a treat to hear firsthand accounts of art crime and its consequences from the founder of Scotland Yard's Art Crime Squad team, Dick Ellis. He was someone I knew I wanted to keep in touch with from the program. And when I settled in to New York, I was thrilled to learn that I could help Dick Ellis on a case he was currently working on. To me, art history is like a detective novel. But here was an opportunity for me to get involved in a real life case. What was at stake was the authenticity of a work by Jean-Michel Basquiat. My research took me to the National Archives in DC. There was a label on the back of the work that suggested that it had been purchased by a now closed gallery in New York. I poured through their records to discover no such trace of that particular Basquiat piece having passed through the gallery. However, I contacted the gallery owner who authenticated the proof of sale document from the gallery in NYC to a gallery in Germany, but denied ever having the Basquiat work in his gallery. Something was amiss. In the end, the work in question turned out to be a fake. The art market is a slippery snake and this case highlighted the importance of provenance research. A little research goes a long way.
ARCA blog: You speak Italian and were able to travel through parts of Italy. What stood out to you during your travels?
Ms. Edelman: Well I speak French and Spanish fluently. I was therefore able to pick up a bit of Italian. This did make getting around easier. For anyone interested in art history, the Uffizi in Florence is a must. It was interesting going there after our segment on museum security with Anthony Amore. I started to look around for cameras, light sensors, looking at how the pieces were secured to the wall, and observing the museum guards at work. I've been looking at museums in a different way ever since.
ARCA blog: What has led to your interest in art insurance and what kind of career do you want to pursue?
Ms. Edelman: Working on the Basquiat case lit my fire for provenance research. It is something that is essential and too often easily overlooked. Whatever I end up doing in the field, I know that provenance research is something that I will incorporate fully. I love the idea of research and hands on art crime solving. I seriously thought about joining the FBI, but the idea of wielding a gun just didn't feel like the right fit for me, liberal San Franciscan that I am. And I would never be successful undercover because I'm just about the worst liar there is. Art insurance is still a hands on way of getting involved with solving art crime but from a safer, more behind the scenes stand point.

April 4, 2011

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Provenance & Art Collections: The Huntington's Scandalous Gainsborough Portrait

by Catherine Schofield Sezgin

Provenance research, establishing the history of an artwork, involves studying various art collections and how the art in each collection was funded and selected. Residents of Pasadena have walking access to two prominent art collections, The Norton Simon Museum and The Huntington Library, Art Collections, and Botanical Gardens. A recent item on The Huntington Library's blog provoked interest with the title, "A Lurid Lady and Two Petulant Painters," posted by Thea Page who provided provenance information on the painting by Thomas Gainsborough to the ARCA blog:
Penelope (Pitt), Viscountess Ligonier
1770
Canvas, 94 1/2 x 61 3/4 in. (238.76 x 156.85 cm)
11.29
Provenance:
Painted for the sitter's father, George Pitt, later 1st Baron Rivers, of Stratfield Saye, Hampshire, and Sudeley Castle, Gloucestershire; by descent to Horace, 6th and last Baron Rivers; General Pitt-Rivers of Rushmore, Salisbury, 1880; A.C. Rivers; W. Pitt Rivers; Charles John Wertheimer of Norfolk Street, Park Lane, c. 1908; sold by his trustees to Duveen, 1911; acquired by Henry E. Huntington, 1911
Henry Edwards Huntington inherited a fortune built on the one of the transcontinental American railways and married his uncle's widow, Arabella Huntington.  The Huntingtons provided an endowment and more than 500 acres for the premier collection guided by art dealer Joseph Duveen.

Monday, April 04, 2011 - ,, No comments

George Washington University Capitol Archaeological Institute’s Initiative To Protect Egyptian Antiquities Institute Called on Government and Law Enforcement to Act

Rahotepova tomb/Photo by Martin Frouz, FF UK (http://zpravy.idnes.cz/bohyne-poradku-opustila-egypt-pise-archeolog-barta-z-expedice-p65-/zahranicni.asp?c=A110314_084459_domaci_jw)
by Catherine Schofield Sezgin, ARCA Blog Editor-in-Chief

Two weeks ago, the George Washington University Capitol Archaeological Institute launched an initiative to protect Egyptian antiquities from illicit trade around the world, the institute announced in a press release. The institute identified specific actions that the U.S. government and international law enforcement authorities should take to help prevent the illegal trade of Egyptian antiquities. To view the call for action, and the initial signatories, please visit http://archaeology.columbian.gwu.edu/home/call-for-action-to-protect-egyptian-antiquities/.

“As an Institute located in the heart of our nation’s capital, we have a special responsibility to help ensure that issues and solutions are highlighted for policy and law makers,” said Eric Cline, director of GW’s Capitol Archaeological Institute and associate professor and chair of GW’s Department of Classical and Near Eastern Languages and Civilizations.

Dr. Cline cited international reports of more than 50 antiquities stolen from the Cairo Museum alone since the political uprisings have occurred, including artifacts originally from the tomb of the Egyptian pharaoh Tutankhamun.

The GW Capitol Archaeological Institute’s calls are consistent with U.S. obligations under the 1970 United Nations Educational, Scientific and Cultural Organization (UNESCO) convention on the means of prohibiting and preventing the illicit import, export and transfer of ownership of cultural property. On March 15, 2011, UNESCO called for international mobilization to block cultural artifacts stolen from Egypt. The institute has posted the call to action on its web page and encourages US readers to sign the online version of the petition, which can be found at http://www.gopetition.com/petition/44079.html. In brief, the GW Capitol Archaeological Institute urges the president and U.S. Congress to:
• Direct the Department of Homeland Security and other law enforcement agencies to use their authority to prevent illegal trade in Egyptian cultural objects;
• Direct the Department of State and the U.S. Customs and Border Protection Agency to implement import restrictions on undocumented artifacts from Egypt;
• Direct the FBI, Immigration and Customs Enforcement and Homeland Security Investigations to coordinate with foreign counterparts to initiate targeted law enforcement operations to seize stolen cultural property, arrest criminals and seize and confiscate proceeds; and
• Direct the U.S. Agency for International Development to grant additional funds for protection at archaeological sites. 
In addition, the Institute encourages the: 
• International Criminal Police Organization to use its telecommunications system with respect to possible crimes involving Egyptian cultural property and to identify suspicious financial transactions which can lead to the freezing and confiscation of proceeds; and
• U.S. Congress to designate funds for the protection of Egyptian antiquities as part of its economic aid package.
The mission of the GW Capitol Archaeological Institute includes advancing archaeological research initiatives and cultural heritage development both on land and underwater.
ARCA Blog: Via email, Dr. Cline answered a few questions for this blog. Do you believe today that archaeological sites across Egypt are still largely unprotected? We’ve all seen reports that some of the storerooms with artifacts from these sites have been broken into in the last month with priceless objects stolen.
Dr. Cline: There is no question that it has been a challenge guarding archaeological sites during the events of the last three months. We are hearted by the response of many of the Egyptian people who, on several occasions, have even risked their lives to protect these antiquities. That said, until the regular police returns in full force, combined with strong, armed tourist policy, we expect to see the looting continue.

We continue to receive information about break-ins and attacks. For example, there are reports that armed groups have been digging for ancient artifacts at the Garza archeological site in Fayoum and have broken into a storeroom at the site of Tell ed-Daba’a in the Delta as recently as this week. Here are some links, with pictures:

http://zpravy.idnes.cz/bohyne-poradku-opustila-egypt-pise-archeolog-barta-z-expedice-p65-/zahranicni.asp?c=A110314_084459_domaci_jw

http://www.artsjournal.com/culturegrrl/2011/02/news_flash_detailed_report_abo_1.html

http://www.almasryalyoum.com/en/node/379337

http://luxortimesmagazine.blogspot.com/2011/04/masked-men-attacked-storage-in-delta.html
ARCA Blog: Two weeks ago in Paris UNESCO met to commemorate the 40th anniversary of the 1970 Convention. How effective do you think UNESCO can be in a situation of civil unrest as in Egypt?
Dr. Cline: UNESCO has a very important role in bringing world attention to the looting not only in Egypt, but around the Middle East in this time of unrest. We look to them to play a leadership role in bringing to bear the various financial and law enforcement tools available worldwide to not only halt the looting, but strike at those willing to cooperate with the looters. 
The challenge is that we are facing an emergency situation in Egypt which requires swift and immediate action. We praise the UNESCO for sending out a delegation to examine the situation, but hope that it will bring about real results in the near term. The looting is detrimental to our common cultural heritage, but also harmful to Egypt’s largest source of revenue -- tourism.
ARCA Blog: What has been the response to your initiative from archaeologists and the government agencies named such as Homeland Security and the Department of State?
Dr. Cline: We launched our call to action to try to bring together the various parties who have an ability to halt the looting, and strike at those who might cooperate with the looters. The response from archaeologists, especially the Egyptologists to whom we have reached out, has been overwhelmingly positive. In addition, the US government has been supportive. While they are willing to work cooperatively with the Egyptian government and the archaeologists on this pressing issue, the State Department’s cultural heritage bureau can take official action only after a request from the Egyptian government. Once this occurs, which we hope will take place in the very near term, the State Department will be able to work with Homeland Security and other law enforcement agencies to introduce emergency import restrictions against undocumented artifacts from Egypt.
ARCA Blog: What would you like to see happen in the next few months to secure the archaeological sites in Egypt and to stop the looting of antiquities?
Dr. Cline: Steps need to be taken to secure the archaeological sites and storerooms, and to stop the looting of antiquities as well as to prevent their subsequent sale. We believe that the Egyptian government will make protection of these sites a top priority, even during this time of transition, as it is not only a question of protecting our common heritage, but protecting Egypt’s main source of revenue -- tourism. In addition, we hope that governments around the world will use the various law enforcement tools available -- including import restrictions -- to halt the transport and sale of undocumented antiquities. Given the economic nature of this problem, any economic aid packages to Egypt should include appropriations to help protect these priceless sites. Finally, our goal is to work with the Egyptian government to set up training programs to help Egyptian law enforcement officials and others establish “best practices” in cultural heritage enforcement around the world.
ARCA Blog: What can our readers do to help?
Dr. Cline: We appreciate the wonderful support to date for our call for action. We would like to ask your US readers to sign our petition, http://www.gopetition.com/petition/44079.html, and encourage their local congressional representatives to include antiquities protection in the economic aid package for Egypt. Archaeology students in Egypt could help in assessing damage to sites and storerooms. We also appreciate receiving any information about the looting and other ways to raise public awareness of this critical challenge.

April 1, 2011

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Upcoming Book: "Chasing Aphrodite" to be Published by Houghton Mifflin Harcourt on May 24

by Catherine Schofield Sezgin, ARCA Blog Editor

While covering the Getty's relationship with cultural property this week ("The Getty Bronze" and the Region of Marche"), I appreciated the excellent coverage on the same subject in the Los Angeles Times by Jason Felch who, with another journalist, Ralph Frammolino, is publishing a book next month, Chasing Aphrodite, subtitled "The Hunt for Looted Antiquities at the World's Richest Museum". Attitudes toward the collecting of antiquities have evolved in the past four decades since UNESCO's 1970 Convention which asked that museums and governments stop the purchasing of looted antiquities and ask more about the provenance and context of objects, but controversy has always reigned and The Getty, a resourceful and powerful entity, in addition to being a worldwide leader in conservation, has also a murky history in regards to part of its collection which changed its leadership in the past few years.

The book, the product of five years of investigative reporting, which can be pre-ordered now through Amazon.com here, comes out on May 24 from Houghton Mifflin Harcourt. Felch and Frammolino tells the story of how officials of the J. Paul Getty Museum grappled with the question of acquiring looted Greek and Roman antiquities over 30 years, and the eventual indictment of the Getty's antiquities curator in 2005,' according to the press release. [Marion True, the indicted Getty official, had the charges dropped against her last year in Italy as the court case had dragged on for too long.]

Advance praise of the book includes a comment from Ulrich Boser, author of The Gardner Heist: The True Story of the World's Largest Unsolved Art Theft, and Jonathan Harr, author of The Lost Painting: The Quest for a Caravaggio Masterpiece.
"A thrilling, well-researched book that offers readers a glimpse into the back-room dealings of a world-class museum--and the illegal trade of looted antiquities. Chasing Aphrodite should not be missed,” Boser wrote.
“An astonishing and penetrating look into a veiled world where beauty and art are in constant competition with greed and hypocrisy. This engaging book will cast a fresh light on many of those gleaming objects you see in art museums,” Harr wrote.
You may follow the book on Facebook or Twitter.

March 30, 2011

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A New Exhibition at Rome's Palazzo Farnese and the Pope Behind the Art Collection

Titian's Pope Paul III and his Grandsons (Museo di Capodimonte)
by Catherine Schofield Sezgin, Editor-in-Chief

Today ARTINFO.com published an article by Noah Charney, ARCA's founder, about a special exhibition at the French embassy in Rome, "Rome's Palazzo Farnese Opens Its Doors to Offer a Rare Glimpse of Renaissance Art Marvels"in the family's former Renaissance home.  The Farnese family piqued my interest in 2009 while visiting Napoli's Museo di Capodimonte where paintings by Titian and Raphael depict the life of Alessandro Farnese, cardinal, grandfather, and pope.

Alessandro Farnese, born in 1468, was elected as a cardinal at the age of 25 and fathered four illegitimate children before he was ordained a priest at the age of 51.  Reigning as Pope Paul III from 1534-1549, he opened the Council of Trent in 1545 to discuss church doctrine and correct abuses such as the selling of salvation to parishioners; urged a crusade against the Turks; befriended François I (Leonardo da Vinci's last patron); and was unable to resolve Henry VIII's break with Rome over his numerous divorces.

Napoli is a complex city where civilians honk at the carabinieri cars to drive faster, the trash piles up on the street, the archaeological museum displays erotic art from Pompeii, and art works by Caravaggio, on the run from a murder charge in Rome, decorate the chapel of one of the city's charitable institutions.  On the top of a hill overlooking the Bay of Naples, the Museo di Capodimonte, the former palazzo of Charles of Bourbon displays the Farnese art and antiquities collection inherited when his mother, Elizabeth Farnese, married King Philip II of Spain in 1715.  The second room of the Farnese Gallery has three paintings of Alessandro Farnese: Raphael's Portrait of Alessandro Farnese (1509-1511); Titian's Pope Paul III (1545-46); and Titian's Pope Paul II with his Grandsons (1545 circa).

Alessandro's sister, Giulia, was the mistress of Pope Alexander VI who made her brother cardinal of Santi Cosma e Damiano, an ancient church that included the Temple of Romulus, the best preserved pagan temple of Rome.  In 1513, after discontinuing his relationship with the mother of his children, Alessandro Farnese began the planning and construction of one of the grandest residences in Rome, Palazzo Farnese, built of huge blocks plundered from ancient monuments.  When he was elected pope, he appointed his teenage grandsons cardinals and employed Michelangelo to complete the third story of Palazzo Farnese.  As an art patron, Pope Paul III commissioned Michelangelo for the Last Judgement in the Sistine Chapel; the Conversion of St. Paul and The Crucifixion of St. Peter in his private chapel in the Vatican (the Cappella Paoline), and appointed him architect to the new Saint Peter's Basilica after the death of Antonio da Sangallo.  Titian visited Rome in 1545-6 and painted the family portraits.

Pope Paul III died after his son, the Duke of Parma, was murdered during a period of conflict regarding family control of the papal territories.  He was buried in St. Peter's Basilica in a tomb designed by Michelangelo.  His family continued to amass power and wealth, marrying into nobility and collecting art.  His grandson, Cardinal Alessandro Farnese, spent much of his wealth on artistic projects, including building up the largest collection of antiquities in Rome which today composes much of the archaeological museum in Napoli today.

March 29, 2011

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Press Release Prepared by Lana Rushing on Behalf of the Governor of Marche Region, Italy: "Italy to Getty: We're Not Here to Declare War!"

Governor Spacca at the press conference in Century City
This is the press release prepared by Lana Rushing of Rushing PR on behalf of the Governor of Marche Region, Italy. You may find it as informative as I did.


Italy to Getty: We’re Not Here to Declare War!

Top Italian Official Offers Innovative Peace Treaty to Resolve Long-Raging Battle with World’s Richest Museum; Share Custody of Stolen “Victorious Youth” Bronze Statue - or Risk Losing it to Italy Forever

Governor of antiquities-rich Marche Region Implores Getty: “Act Like a World-Class Cultural Institution and Behave Ethically”

Los Angeles – A senior Italian government official today offered an innovative peace treaty in an historic antiquities battle with the J. Paul Getty Museum, imploring the world’s richest cultural institution to “behave ethically” by returning knowingly looted art to its homeland – or risk losing it forever.

“We have not come to declare war on the Getty,” said Gian Mario Spacca, the Governor of Italy’s Marche Region on the Adriatic Sea – one of the richest sources of archeological antiquities and Renaissance era works of art. “We are here to try to' resolve the dispute in a way that will benefit this great museum, the people of Italy – and, most important, art lovers around the world."

Speaking at a news conference in Los Angeles, the Governor unveiled a novel “cultural exchange” proposal to share custody of the 2,300-year-old bronze statue “Victorious Youth” (also known as the “Athlete of Fano”), a nearly five-foot antiquity sculpted by the Greek artist Lisippo. The antiquity mysteriously arrived at the Getty in 1974 and was displayed to great fanfare. It was showcased as “The Getty Bronze”.

The Bronze is one of several star attractions at the Getty, including the iconic seven-foot marble and limestone “Aphrodite” which Italian police escorted home last week following a long-raging legal fight with the museum. Italy says its rare antiquities had been buried for centuries and discovered by unsuspecting citizens who sold them at a fraction of their worth to art thieves - and then purchased by the prestigious Los Angeles-based museum without legitimate historical ownership credentials. The antiquities were showcased over the past several decades to build the Getty’s reputation as a global cultural force.

The Getty’s previous curator of antiquities, Marion True, was indicted in Italy in 2005 (along with famed art dealer Robert Hecht Jr.) on criminal charges of trafficking in stolen antiquities.

“The Italian people expect a museum as prestigious as the Getty should not be trafficking in illegal art. Further, the Getty should show the world it can act like a world-class cultural institution and behave ethically,” Governor Spacca told reporters today in unveiling his proposal.

Governor Spacca characterized his proposal as a significant proactive effort to break the deadlock in the Getty stolen-art conflict and speed a resolution after decades of failed negotiations and legal wrangling.

In a separate action, the legal dispute is expected to be decided by an Italian high court later this week following multiple failed appeals by the museum, which continues to assert its legal ownership of the “Victorious Youth”. A final ownership ruling favoring Italy, could subject the priceless Bronze to the same fate as “Aphrodite,” which was one of the leading attractions at the Getty until its confiscation by Italy earlier this month.

“The Victorious Youth” by Lisippo is a very important testimonial for the Italian culture. It is of great interest for Marche to have the statue returned to Fano, from where it disappeared years ago,” said Governor Spacca.

The “Victorious Youth” was discovered by fishermen in 1964 and sold for $1600 to an art dealer. The whereabouts of the statue were shrouded in mystery until the Getty purchased it for about $3.9 million and put it on display 37 years ago.

March 28, 2011

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"The Getty Bronze" and the Region of Marche: In the shadow of a pending court case in Italy, officials from Marche visit Los Angeles, meet with the Getty, and hold a press conference to underscore their desire for a 'cultural relationship' between Los Angeles and Marche

by Catherine Schofield Sezgin, Editor

CENTURY CITY - 'Governor' Gian Mario Spacca, president of the Marche region of Italy, held a press conference this morning to discuss his proposal to the Getty Museum for a cultural relationship between the institution which owns the "Getty Bronze" and the region from which it was fished out of the ocean almost six decades ago, weeks before an Italian judge reaches a decision about the status of the 'Victorious Youth', known in the Adriatic region as 'Atleta di Fano.'

Governor Spaaca & "The Athlete of Fano"
Spacca said that the purpose of his trip was not to fight with the Getty Museum, but to establish cooperation 'on universal values such as culture', he said through an interpreter at a conference room in the Intercontinental Hotel in Century City on the westside of Los Angeles, just 12 miles from where the Greek statue resides today in Malibu as it has since 1977 after being purchased for nearly $4 million.

The ancient Greek bronze, the subject of a book by Carol C. Mattush published by the J. Paul Getty Museum, "is one of a very few life-size bronzes from ancient Greece known to exist in the world today," according to The Getty website. "It was found in the sea in international waters," The Getty explains here.

The 'Victorious Youth', which even has its own Facebook page, known as the 'Atleta di Fano', has been a subject of controversy for years. Governor Spacca, as he's identified by his press release, said that he hopes to avoid another ugly 'Morgantina experience" referring to last week's return of the Getty's $18 million Aphrodite to Sicily after years of dispute and revelations of illegal excavation and smuggling, as reported by Jason Felch in The Los Angeles Times ("Getty Ships Aphrodite Statue to Sicily"). You may read further about the Fano Athlete here, here, here, and here.

At the press conference today, Governor Spacca said that 'our goal' is to place it in one of the many museums in either Ancona or Fano in the region of Marche on the Adriatic, a place that was once the "Iron Curtain" between the ancient Roman and Greek cultures. 'Our goal is to give the people the possibility of admiring the statue and of knowing their great cultural heritage,' Governor Spacca said through an interpreter. "Having the statue back would be an extraordinary feeling and going back to ancient identity of the Adriatic culture."

Governor Spacca had met with the Getty Museum who had said that the institute would be waiting for the end of the legal proceedings in Italy before starting to deal with the Italian government. Jason Felch continued his in-depth coverage yesterday here.

"Our proposal is regardless of the judge's ruling," Governor Spacca told the media Monday. "We offer a region rich in cultural and Renaissance heritage."

You may see more about the Region of Marche through the website here.

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