Posted on 03/26/2009 2:58:15 PM PDT by NormsRevenge
NEW YORK (Reuters) – Former tennis champion John McEnroe was duped along with investment firms, art owners and collectors and the Bank of America in a sophisticated $88 million art investment scam revealed in New York on Thursday.
Art dealer Lawrence Salander, 59, was arrested at his New York home on Thursday, when he and his gallery were charged with 100 counts, including grand larceny and securities fraud, Manhattan District Attorney Robert Morgenthau told a news conference.
Officials said there are 26 victims of Salander's scheme including McEnroe, who invested $2 million for a half share of two paintings, Arshile Gorky's "Pirate I and II." McEnroe never recouped the money after his share in the paintings was sold to another collector, authorities said.
Morgenthau said the scheme, which lasted from 1994 to 2007, included luring investors who paid cash in exchange for shares of ownership of works of art.
...
The investigation of Salander, the former owner of Salander-O'Reilly Galleries, is continuing.
(Excerpt) Read more at news.yahoo.com ...
/mark
An art Ponzi scheme...LOL!
Now he really has something to scream about
I don’t get why you would spend that kind of money for only a “share” of art. I’d want my own painting for that pricetag.
YOU CANNOT BE SERIOUS.*
(* -series)
[John McEnroe was duped along with investment firms, art owners and collectors and the Bank of America. . .]
Fine art patrons bailout time.
Investing in art is almost always a big mistake. Most art dealers are criminals of some sort.
I’ve watched too many cheat people out of money. One great scheme is to take a work on consignment, then sell it and “forget” to tell the customer. Often they will lie and say it hasn’t sold.
If you want art, buy stuff you like and don’t worry about the value. I’ve done well buying from young artists at art fairs and small galleries. The stuff on my walls is pleasing and a few pieces have significantly appreciated in value.
Agree, plus you can get great reproductions from artrenewal.org for $200-$300. So why spend millions on the original? LOL!
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