He discussed how poor the security systems were at most of the major cultural institutions and of course at mid-sized and smaller galleries.  That made his job easier.  So there was that angle -- art galleries and museums weren't adequately protecting themselves against pros like him. 

Then he veered in another direction. 

"Okay, this is how it works," he said.  "It's like a big shell game.  All the antique and art dealers, they just pass it around from one to another."  He moved his fingers around the table in circles and then looked up.  "Do you understand?" He looked very intense, as if he had just handed me a top-secret piece of information, but I had no idea what he meant.  What did art dealers have to do with stealing art?  But our meeting was over.

What separates this time from any other brief time on earth is awareness.
Why are we having so much difficult struggling with these problems?

Is the international art market properly creating this value? 

If not, how can it be improved? 

What is each of us doing to make it so?

Inside the historical center of Amelia (Photo by Catherine Sezgin)

By:  Lynda Albertson

When the painting, “Salvator Mundi” (Savior of the World), attributed to Leonardo da Vinci, was sold at Christie's Auction for $450.312,500 in November 2017 it had already created a stir.  Some felt the oil painting of Christ, depicted in Renaissance dress giving a benediction, was wrongly attributed. Others were simply flabbergasted by the eye-popping price the once badly-damaged artwork bought at auction.

In its recent history the artwork, attributed to Giovanni Boltraffio and characterized as a “school of da Vinci” portrait of Christ, was purchased for a paltry £45, on June 25, 1958, by Minnie Stanfill Kuntz.  Kuntz picked up the artwork during an auction at Sotheby’s in London, from objects from the estate holdings of Sir Francis Cook.  Minnie, who along with her husband ran a furniture business back in the United States, brought the religious-themed painting home to New Orleans.

After her death in 1987 the oil-on-walnut painting passed into her nephew's hands, Basil Clovis Hendry Sr., of Baton Rouge.  Hendry's daughter, Susan Hendry Tureau, a retired library technician, subsequently inherited the Salvator Mundi painting upon the death of her father on June 6, 2004. A short while afterward, she decided to sell it.

Hendry Tureau obtained an initial appraisal that valued the artwork at a modest $750 then sent the details of the painting for sales consideration to Christie's in New York and to the St. Charles Gallery branch of New Orleans Auction Gallery.  This Louisiana gallery, which has since changed hands, is where the “Salvator Mundi” was eventually consigned.  During the gallery's April 9-10, 2005 auction, the inherited painting was listed as Lot 664 and given an estimated sale price of $1,200 to $1,800.  The artwork sold for a brisk $10,000.  

The buyers of the artwork were Robert Simon, a specialist in Old Masters from New York, and Alexander Parish.  The pair, in turn, hired Dianne Dwyer Modestini, an Old Master and nineteenth-century paintings conservator, who worked at the Metropolitan Museum of Art from l974 until l987 before moving on to further her private conservation practice in New York.

Modestini, a senior research fellow and conservator of the Kress Program in Paintings Conservation at NYU’s Institute of Fine Arts, was tasked with cleaning, repairing, and studying the painting.  Six years of painstaking restoration and the removal of dirt and stains were to follow.  During this time Modestini worked her way through deciphering the clumsy overpainting and repairing the damages wrought by time to the 500-year-old work of art. 

With few known paintings by the great master in existence, and with most of Da Vinci's works in museums or public collections, the painting's possible attribution drew considerable excitement, as well as controversy, even before its ultimate November 2017 sale price.  

Some connoisseurs see the artwork as an unrecognized work by da Vinci, with numerous restoration enhancements or adulturations (depending upon the eyes of the viewer).  Others believe the artwork to be a lessor-valued "school of" work, where Leonardo likely, if at all, only intervened in a few specific places.  Some believe the artwork was painted primarily by an assistant, Bernardino Luini, a work of art that would eventually become, possibly, the prototype for up to twenty Leonardesque versions, which were completed by students and followers of Leonardo and which depict this well-known composition of Christ.

But the controversies surrounding the painting were not solely related to its attribution, some of the disagreements include the orchestrations surrounding its various transactions in the art market, at different stages, after its declaration as a probable work by Leonardo da Vinci hard started gaining momentum.

From the local antique market to the hands of the art market's elite

The market in high-end art has long had the potential to be one of the most manipulated markets in the world, and the sale of this once unknown portrait of Christ, now labeled as the work of Leonardo da Vinci, clearly illustrates this, as well as the struggle often caused by the market's opacity and interconnectedness.  As is often the case with high-value works of art, price and worth are determined by the motives of both the buyers and the sellers.  Scratch below the surface of the transactional price and a clinched deal may have more to do with strategy and power than simply with the artwork's innate aesthetic or genuine worth.

Bolstered by an exhibition at London's National Gallery held November 2011 through February 2012, where the painting was listed as “an important opportunity to test this new attribution by direct comparison with works universally accepted as Leonardo’s”, the owners of the painting, Simon, Parish and Warren Adelson, president of Adelson Galleries, approached Max Anderson, and offered to sell him the “Salvator Mundi”.  This was in the Fall of 2011 and shortly before Anderson was appointed as director of the Dallas Museum of Art.

As part of their sales strategy, the dealers agreed to loan the artwork to the DMA from March through December of 2012.  As the first US exhibition of the painting, it was hoped the event would give the new director time to generate enthusiasm around its possible purchase and to buy the museum time to look for adequate funds to purchase the artwork.

Later, Anderson was quoted as saying the museum could have “snagged” the artwork for $125 million.  Yet, despite the director's best fund-raising efforts and enthusiasm, a viable deal, which satisfied the three sellers as well as the museum's board and donors, never solidified.   In December 2012, the owners rejected the museum’s final bid following considerable negotiation.  Soon afterward, the artwork was shipped back to New York, to be sold on the auction block.  With two well-publicized exhibitions to back it up, a muted presale estimate of $100 million, with a da Vinci attribution, was estimated.

Ironically though, in May 2013, Swiss businessman and freeport mogul, Yves Bouvier, negotiated a lower purchase price from the consortium's sellers.  After a short period of discussion, the businessman's offer of $83 million, via a privately brokered sale proposal, was accepted by the sellers.

Sam Valette, Sotheby's senior director and vice chairman of private sales Image Credit:  Screenshot Sotheby's video Picasso's 'Plant de Tomates'

Their transaction was closed by Sotheby's rainmaker, Sam Valette, a senior director and vice-chairman of private sales for the auction house. Known for his ability to generate large sums of money closing deals with high profile clients who seek total discretion outside the auction hall, Valette also, on occasion, wrote assessments on artworks for Bouvier. As the Swiss art dealer was known to buy works of art from Sotheby’s in his own name in furtherance of his art sales business. Valette purportedly was not aware of who Bouvier intended to sell the painting to.  This suggests that as far as the auction house was concerned, Bouvier was not, in this instance, to their specific knowledge, acting as an agent for any buyer in particular when the Da Vinci transaction was finalized.

Immediately after purchasing “Salvator Mundi”, Bouvier flipped the oil painting to his long-standing client, Dmitry Rybolovlev, a Russian oligarch whose fortune was built from his interests in Uralkali, one of the world's leading producers of potash fertilizer and one of Russia's largest chemical companies.  Bouvier sold the Christ painting to the Russian for $127.5 million, $44 million more than he had purchased it for.

Four years later, and in the middle of a raging feud between Rybolovlev and Bouvier, the Russian oligarch sold the painting via auction to Saudi Prince Badr bin Abdullah bin Mohammed bin Farhan al-Saud for $450.3 million.  After the buyer was announced, news reports began declaring that the painting would be publicly displayed on September 18, 2018, at the newly opened Louvre in Abu Dhabi.

Only that never happened.

Acting in the interest of the Seller and the Buyer.  Art-world luminaries aren't always who you expect them to be.

The circumstances surrounding the private deal Bouvier struck with Rybolovlev, and Rybolovlev then struck via public auction with Saudi Prince Badr bin Abdullah bin Mohammed bin Farhan al-Saud, for the “Salvator Mundi” leave a trail of unanswered questions and intrigues.  Some of the details seem ripped from the pages of an Ian Fleming, 007, spy novel involving characters seemingly taken straight out of Casino Royale.


Dmitry Rybolovlev met Yves Bouvier for the first time in 2002 when the Russian billionaire paid a visit to the art storage facility Ports Francs et Entrepôts de Genève, to pick up a Marc Chagall painting that he had purchased titled “Le Cirque”.  The billionaire's aloof, art connoisseurship was fueled by his profits from potassium potash fertilizer (K20) business.  Potash being one of the main nutrients applied to soil in intensive cropping systems in agriculture around the world.

For Rybolovlev, art served as a well-protected investment, a portfolio diversifier, and most importantly as a transferable safe-haven asset.   Portable, and not denominated in any currency, over the span of ten years, and prior to their litigious falling out, Bouvier would source and sell the Russian investor a total of 38 high-value works of art.

While no comprehensive list of Rybolovlev's artistic acquisitions has ever been formally itemized, various news articles mention a number of extraordinary works of art purchased by the billionaire through the Swiss dealer.  These include art and sculpture by:

Edgar Degas
Paul Gauguin (Otahi and Te Fare)
Alberto Giacometti
El Greco (Saint Sebastian)
Gustave Klimt' (Wasserschlangen II)
René François Ghislain Magritte (Le domaine d’Arnheim)
Joseph Bonaventure Maillol
Amedeo Clemente Modigliani (Nu Couché au Coussin Bleu)
Henri Émile Benoît Matisse
Oscar-Claude Monet
Pablo Picasso (Les Noces de Pierrette, Joueur de flute et Femme Nue, Femme se Coiffant and Espagnole à l’Eventail)
Pierre-Auguste Renoir
François Auguste René Rodin (L’Eternel Printemps and Le Baiser Grand Modele)
Mark Rothko (No. 1 and No. 6 )
Henri de Toulouse-Lautrec (Au Lit: Le Baiser)
Van Gogh's (Paysage Avec un Olivier)

and of course, the subject of this article,

Leonardo da Vinci's (Salvator Mundi).

Like many former Soviet Union oligarchs, Rybolovlev made his fortune through the privatization of Russia’s infrastructure and natural resources, just as the former Soviet economic and political system began to shift under the Perestroika movement to a fledgling market-based economy.  The son of doctors from the industrial city of Perm, in what was once the Gulag Archipelago in the Ural region, between the East European and West Siberian plains, Rybolovlev's acumen and interest was for business investment opportunities, not the field of medicine, which interested his parents.

By the time he was in his late twenties he had begun buying up shares in Uralkali, Perm's local fertilizer firm, and other former Soviet, joint-stock companies in the region.  By 1995, and before the age of thirty, Rybolovlev had been named chairman of Uralkali's board, holding the company's majority shares.   The fertilizer powerhouse had only three serious business competitors: Belarusian BPC, the Canadian PotashCorp, and the Israeli firm ICL.

But business oligarchy in the former Soviet republics is not for the risk-averse.  In post-Soviet Russia, the underworld blended with the new elite of the Yeltsin era and as State assets were bought up and privatized, businesses were sometimes forced into paying professional criminals for protection.  As communism crumbled to dust, and Russia's new business-sector entrepreneurs made billions, criminals too profiteered, exploiting opportunities where they could as a new form of cannibalistic capitalism took hold.

As the values and structures of Soviet life disintegrated, organized crime cemented itself into the vulnerable cracks of the emerging market economy.  Attempts on the lives of Perm businessmen were not uncommon and to protect himself, the Potash Tzar's hired bodyguards, began wearing a bulletproof vest, and travelled by armoured car.  Fearing kidnapping or worse, Rybolovlev decided to relocate his family, first to Florida and then ultimately to Switzerland where the family set up residency in Geneva in the Spring of 1995.  Thereafter, Rybolovlev traveled between Geneva and the Ural region as needed for business.

In the Spring of 1996 during one of these trips, Rybolovlev was arrested on suspicion of having ordered the murder of his former business partner, Evgeny Panteleymonov, the general director of AO Neftekhimik in Perm.   Neftekhimik is a joint-stock chemical company in which Rybolovlev reportedly owned 40% of its shares.

Incarcerated for 11 months, Dmitry Rybolovlev was released on a 1 billion ruble bail in April 1997 when convicted murdered Oleg Lomakin, who initially fingered the oligarch as having ordered the hit, changed his story, claiming to have perjured himself.  By the end of the year, the Perm Regional Court had fully acquitted the Rybolovlev.  In a later interview given to Vedomosti, the Russian-language business daily published in Moscow, Rybolovlev stated that he didn't want to comment on his period of incarceration, considering the incident an unfortunate "law enforcement mistake."

By August 2003 Rybolovlev had bought his first painting from Bouvier, “Paysage Avec un Olivier”.  The artwork, by Vincent van Gogh, was bought for a purported $17 million and served to cement the Swiss dealer's formal, or informal, business relationship with the Russian oligarch.

By 2006 Rybolovlev indicated that he held an 80 percent stake in Uralkali as well as a 20 percent stake in Silvinit, Uralkali's rival potash producer. By 2008 Rybolovlev's spending on art and real estate accelerated.

Around this time, Rybolovlev's wife Elena wife began gearing up for divorce and on December 22, 2008, formally filed through the court in Geneva where, according to Swiss law, she would be entitled to half of her husband’s assets.  In a worrying letter, written to the Geneva prosecutor in December 2008, Elena suggested that her husband, Dmitry, should be considered a suspect, should anything nefarious ever happen to her.

The couple's acrimonious legal battle would stretch on for years, complete with a tangled web of trust funds, created ostensibly to protect his two daughters' financial futures. Elena's attorneys contentiously speculated as to whether or not these trusts, in some cases using offshore front companies registered in the British Virgin Islands and elsewhere, were created fraudulently to thwart spousal access to her husband's diversified wealth.

Sinkhole at Berezniki Source: ru.wikipedia.org.

That same year the already tense game of Russian fertilizer roulette grew tenser and talk began to swirl about the billionaire selling his interests in Uralkali outright.  In addition to an angry estranged wife, Rybolovlev was fending off renewed inquiries into a 2006 calamity at a Uralkali mining facility in Berezniki. This incident had caused significant structural and environmental damage to the main arteries of the city's infrastructure and properties.  Kremlin-backed businessmen, under the Putin era, began pressing for their own ownership stakes in financially weakened privatized industries and regional authorities began seeking between $1.5 billion and $50 billion in damages as a result of the industrial disaster. That same year Uralkali's CEO Vladislav Baumgertner was arrested on charges of abusive exercise of power and abuse of office and Belarus authorities issued warrants for the arrest of other top Uralkali executives.

• Suleiman Kerimov, of Kaliha Finance Limited - 25% of the company's shares
• Alexander Nesis, of Aerellia Investments Limited - 15% of the company's shares
• Filaret Galcheva, of  Becounioco Holdings Limited - 13.2% of the company's shares

Three months later, in September of 2010, Rybolovlev bought controlling shareholder interest in the Bank of Cyprus via Odella Resources LTD, a business he registered in the British Virgin Islands, which belongs to the Trustees of a Cypriot international discretionary trust, the beneficiaries of whom are Mr. Dmitry Rybolovlev and his two daughters.  Shortly thereafter the Russian acquired Cypriot citizenship under the country's citizenship-by-investment scheme.  Rybolovlev's investment in the Cyprus bank once consisted of deposits at the BoC and €500 million euro in shares, and was reportedly lost by June 2013.  In 2014, President Trump's Secretary of Commerce, Wilbur Ross, became the Cyprus bank's chief shareholder.

Two and a half weeks later,  on October 20, 2015, Rybolovlev and his wife Elena jointly announced that they had reached a confidential and satisfactory settlement in their divorce, stating that this "puts an end to all legal procedures launched in different jurisdictions".  On this same date, the businessman walked his then 26-year-old daughter Katerina down the aisle to marry Juan Sartori on the now leased Onassis's private island of Skorpios. Satori is an Uruguayan entrepreneur who, in his thirties, chairs the Union Group (UG), a private firm that has significant interests in ventures related to agriculture, energy, afforestation, infrastructure, minerals, gas, and oil, as well as real estate in Latin America.  Satori is now running as Uruguay's National Party candidate for President in the 2019 elections for the Republic of Uruguay in opposition to the ruling Frente Amplio government.
In early 2017 Rybolovlev offloaded many of the 20th-century artworks that he had previously purchased through Bouvier, some for strikingly high losses.

By the fall, Rybolovlev had also put the “Salvator Mundi” artwork up for auction at Christie’s through rainmaker Loïc Gouzer whose had brashly convinced the oligarch to auction the classical Old Master oil painting in the auction house's November 15, 2017 Postwar and Contemporary sale.  The painting was listed as Lot 9B and came with a $100 million guarantee.  Surging quickly past this benchmark during the auction, two anonymous bidders battled tightly to outbid one other for twenty minutes until the threshold finally grew too rich for one of them.  Selling to the highest bidder, for $450.3 million inclusive of the 12.5% buyers premium, the artwork ranked as the single most expensive work of art ever sold at auction.

The following January (2018) Rybolovlev was named in the U.S. Treasury Department's Kremlin Report, a list of 210 officials and billionaires from Russia's ruling elite, who were expected to receive additional scrutiny in future business transactions in response to Russia's alleged meddling in the 2016 U.S. presidential election and Russia's military involvement in Ukraine.

In 2017 Rybolovlev is charged in Monaco with "complicity in violating the right to respect for privacy" in connection with his ongoing dispute with Bouvier.

Then, on October 2, 2018, Rybolovlev filed a $380 million lawsuit in the US District Court of New York against Sotheby's alleging that the auction house “materially assisted the largest art fraud in history” in relation to sales orchestrated by Yves Bouvier.