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Three men were charged on Monday, April 21, in connection with a forgery scam led by the Long Island-based art dealer, Glafira Rosales. During the fifteen-year scheme, Rosales and her accomplices sold counterfeit works that mimicked the styles of modern masters, including Jackson Pollock, Willem de Kooning, and Mark Rothko, through well-known galleries such as the now-shuttered Knoedler & Company gallery in New York. Rosales and her camp swindled unsuspecting customers out of more than $33 million. 

Among the trio was the Queens-based painter Pei Shen Qian, who allegedly made the forgeries and is believed to have fled to China. Qian, who has been charged with wire fraud conspiracy, wire fraud, and making false statements, faces up to 45 years in prison if he is convicted. Brothers Jesus Angel Bergantinos Diaz and Jose Carlos Bergantinos Diaz were arrested last week in Spain. Jesus faces up to 80 years in jail and Jose faces a maximum sentence of 100 years behind bars. Rosales, who already pleaded guilty, is awaiting sentencing. She faces up to 99 years in prison.

Manhattan US Attorney, Preet Bharara, said, "Today's charges paint a picture of perpetual lies and greed...With today's Indictment, the defendants must now answer for their alleged roles as modern masters of forgery and deceit.”

Published in News
Tuesday, 08 April 2014 13:49

Swiss Expert Sued Over Rothko Painting

Las Vegas billionaire Frank Fertitta III is suing a respected Swiss curator accused of standing behind the authenticity of a Mark Rothko painting that turned out to be a fake. Feritta acquired “Untitled (Orange, Red and Blue)” from New York’s disgraced Knoedler gallery in 2008. He paid $7.2 million for the canvas.

Oliver Wick, a Swiss Rotko expert and specialist in American paintings, received $300,000 for the sale. According to court documents, Wick “was aware of substantial evidence that the painting was a forgery” and “conducted no independent research into the authenticity of this fake Rotko.” The painting had been exhibited at the Fondation Beyeler museum in Basel, Switzerland, where Wick was a curator.

Knoedler, which closed in 2011, has been accused by multiple clients of selling forged paintings. The forgeries, which were presented as authentic works by Rothko, Jackson Pollock, Robert Motherwell, Franz Kline, and Willem de Kooning, had been painted by a Queens-based Chinese artist and sold to Knoedler by Glafira Rosales, a Long Island art dealer. Rosales pleaded guilty to nine charges, including wire fraud, tax fraud, and money laundering, last September. During her 15-year scheme, Rosales swindled unsuspecting customers out of over $80 million.

Published in News
Friday, 29 November 2013 11:55

Two New Lawsuits Leveled at Knoedler & Co.

Disgraced gallery Knoedler & Co. is at the center of two new lawsuits. The first suit was filed by Los Angeles’ Manny Silverman Gallery and Richard Feigen’s gallery in New York. The two dealers are asking to be repaid $1,050,000 for a forged Clyfford Still painting that was sold in a three-way transaction with Knoedler in 2000. The second suit was filed by Los Angeles collectors Martin and Sharleen Cohen, who bought two works, one by Mark Rothko and another by Willem de Kooning, both of which turned out to be forgeries. The couple is demanding to be repaid $475,000 plus interest for the two paintings.

All of the works were part of a trove of fake paintings supplied to Knoedler & Co. by Long Island art dealer, Glafira Rosales. Knoedler & Co. has been involved in over a dozen lawsuits as a result of the forged artworks it received from Rosales.

Published in News
Monday, 16 September 2013 18:53

Art Dealer Pleads Guilty in Major Forgery Case

Glafira Rosales, the Long Island-based art dealer accused of selling fake artworks to the acclaimed galleries Knoedler & Co. and Julian Weissman Fine Art, pleaded guilty in U.S. District Court in Manhattan. During her 15-year scheme, Rosales admitted to selling counterfeit works that mimicked the styles of modern masters including Jackson Pollock, Willem de Kooning and Mark Rothko as well as swindling unsuspecting customers out of over $80 million.

When Rosales brought the forgeries, which were painted by a Queens-based artist in his home studio, to Knoedler and Weissman, she claimed that they were never-before-exhibited and previously unknown works of art. She admitted to arranging for funds from the sales to be funneled to banks in Spain and failed to claim a large portion of the income on her tax returns.

Rosales pleaded guilty to nine charges including wire fraud, tax fraud and money laundering. While the charges carry a potential sentence of up to 99 years, Rosales could be handed a lighter sentence if she cooperates with authorities and shares what she knows with prosecutors, the FBI and the Internal Revenue Service. Rosales’ sentencing has been set for March 18, 2013 but will likely be delayed.

Published in News
Friday, 13 September 2013 17:08

Former Knoedler President Files Defamation Suit

Ann Freedman, former president of the disgraced gallery Knoedler & Co., filed a defamation suit on Wednesday, September 11 in New York State Supreme Court. Freedman helmed the historic gallery until it closed in 2011 amidst charges that it had sold forged artworks worth nearly $80 million.

In her case, Freedman declared that she did due diligence in researching a collection that was presented to her and listed nearly 20 experts, including curators from the Museum of Modern Art, the National Gallery of Art and the Solomon R. Guggenheim Museum, that told her that the works were authentic. However, in many of these cases, the comments were unofficial and decidedly vague.

Freedman’s case is aimed at Manhattan art dealer Marco Grassi who was quoted in a New York magazine as saying “A gallery person has an absolute responsibility to do due diligence, and I don’t think she did it. The story of the paintings is so totally kooky. I mean, really. It was a great story and she just said, ‘this is great.’”

Long Island-based art dealer Glafira Rosales and her boyfriend are allegedly responsible for selling the 60 forgeries to Knoedler & Co. The couple claimed that the works were authentic masterpieces by artists such as Jackson Pollock, Willem de Kooning and Mark Rothko. It was recently discovered that they were painted by an artist in his home studio in Queens.  

Published in News
Monday, 19 August 2013 18:52

Artist Behind Knoedler Fakes Identified

The master forger who was responsible for painting most of the fake modernist artworks sold through the Manhattan gallery Knoedler & Company has been identified. Pei-Shen Qian, a 73-year-old Chinese immigrant, created paintings that imitated works by Jackson Pollock, Barnett Newman, Mark Rothko and Richard Diebenkorn in his home studio in Queens. The works, which disgraced art dealer Glafira Rosales sold through Knoedler, garnered approximately $80 million; Qian was paid a few thousand dollars for each forgery.

Qian, who studied at the prestigious Art Students League, became involved in the scheme when he met Rosales’ boyfriend and colleague, Jose Carlos Bergantiños, in the early 1990s. Over the course of fifteen years, Qian produced at least 63 paintings and drawings in the style of revered Abstract Expressionists, which were then sold by Rosales and former Knoedler employee, Julian Weissman, through the once-esteemed gallery.

No charges have been brought against Qian although FBI agents did search his home last week. Rosales, who has been charged with wire fraud and money laundering, is the only person who has been indicted in connection to the Knoedler scandal thus far.

Published in News

Glafira Rosales, a 56-year-old Long Island-based art dealer has been arrested in connection to the scandal surrounding the disgraced Manhattan gallery, Knoedler & Company. One of many suits stemming from the ongoing Knoedler drama, federal authorities charged Rosales with tax fraud following the discovery that a collection of Modernist masterpieces, which sold for millions of dollars were actually forgeries.

Prosecutors claim that Rosales never disclosed the $12.5 million she made off of the sale. It was also discovered that she maintained a bank account in Spain where she had stashed much of her earnings from the transaction. If convicted on all counts, Rosales faces as many as 34 years in prison but based on federal sentencing guidelines, will most likely receive much less.

Rosales began selling forged works through the offices of Knoedler & Company in the mid-1990s. The works were new to the market and they were said to have come from an unnamed collector based in Zurich and Mexico City. Knoedler accepted the works and proceeded to sell them, bringing millions of dollars in revenue. After multiple experts claimed that Knoedler was selling fakes, the F.B.I. launched an official investigation. Knoedler closed in 2011 after 165 years in business. The company, which had been New York’s oldest gallery, found itself at the center of 6 lawsuits filed by clients who had purchased Rosales’ works.

While tax evasion charges have been leveled against her, Rosales still has not been charged with knowingly selling counterfeit artworks.

Published in News
Monday, 25 February 2013 13:27

Disgraced Knoedler Gallery Hit with New Lawsuit

Prominent Canadian art collector David Mirvish filed a lawsuit on Friday, February 22, 2013 against the disgraced New York-based art gallery, Knoedler & Company. Since closing its doors in late 2011, Knoedler & Company has been accused by multiple clients of selling forged paintings, which were acquired by the gallery from Long Island dealer Glafira Rosales. Mirvish’s is the fifth lawsuit against Knoedler since 2011.

However, Mirvish’s claim is slightly different than its predecessors. While the other lawsuits accused Knoedler of passing off fake Jackson Pollock (1912-1956), Robert Motherwell (1915-1991), and Mark Rothko (1903-1970) paintings as the real deal, Mirvish claims that the works he purchased from the gallery were authentic. Instead, Mirvish is arguing that he lost out on millions of dollars in profits when Knoedler failed to sell three Jackson Pollock masterpieces he purchased jointly with the gallery.

Between 2002 and 2007 Mirvish purchased two paintings attributed to Pollock and bough a half stake in a third for $1.6 million. The sole purpose of Mirvish’s dealings with Knoedler was to resell the works for a profit. One of the Pollock paintings sold to collector and hedge fund manager Pierre Lagrange for $17 million in 2007, but in 2011, the day before Knoedler shut down, Lagrange announced that he would be filing a lawsuit against the gallery as forensic testing suggested the painting was a fake. The Lagrange suit was eventually settled but Mirvish was not involved and refused to return the money he made off of the deal.

Mirvish is now seeking reparations for the two unsold Pollocks, claiming that Knoedler breached its agreement when the gallery suddenly went out of business. Mirvish is asking Knoedler to return the two paintings, referred to as “Greenish Pollock” and “Square Pollock,” as well as reimburse him for his $1.6 million stake in the third painting, referred to as “Silver Pollock.” Even though Mirvish only paid Knoedler $3.25 million, half of “Greenish Pollock” and “Square Pollock’s” purchase prices, he claims that Knoedler’s violation of contract entitles him to both paintings.

Nicholas Gravante, the lawyer of Knoedler’s former president, Ann Freeman, is representing Mirvish. Freeman is not named as a defendant in Mirvish’s case and she has maintained that all works acquired from Rosales are genuine. Rosales is currently under investigation by the F.B.I.    

Published in News

Domenico De Sole, chairman of the fashion powerhouse, Tom Ford International, is suing Michael Hammer, chairman of the disgraced Knoedler Gallery. De Sole and his wife, Eleanore, claim that Hammer sold the couple a fake Mark Rothko (1903–1970) painting (Untitled, 1956) for $8.3 million back in 2004. The allegation against Hammer is an amendment to a lawsuit that was originally filed against Knoedler on March 28.

De Sole’s suit is one of three against Knoedler and its former director, Ann Freedman. The suits all claim that Knoedler Gallery knowingly sold counterfeits. Between the three cases, the plaintiffs are seeking more than $70 million in damages.

Knoedler closed on November 30, 2011 after 165 years in the art world. A claim that the gallery sold a fake Jackson Pollack (1912–1956) painting for $17 million was the reason for Knoedler’s abrupt departure.

In addition to Hammer, the De Sole suit has introduced three new defendants to the ongoing Rothko/Knoedler case. Glafira Rosales, a Long Island art dealer who consigned artworks to Knoedler is newly involved as is as Jaime Andrade, a former Knoedler employee who introduced Rosales to the gallery. Jose Carlos Bergantinos Diaz, Rosales companion and business partner has also been added to the suit.

When Knoedler sold Untitled, 1956 to the De Soles, Freedman claimed that a Swiss collector had bought it directly from Rothko, and after the collector’s death, Knoedler was responsible for selling the work on his son’s behalf. The gallery had bought the painting from Rosales a year earlier for $950,000 and relied on her work about the painting’s provenance. Suspicions arose after Knoedler Gallery closed amidst the Pollack scandal and the De Soles’ lawyers hire a forensic conservator who found the painting’s marks and composition were inconsistent with Rothko’s technique.

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