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Showing posts with label money laundering. Show all posts
Showing posts with label money laundering. Show all posts

December 8, 2023

Swiss art dealer Yves Bouvier and his former Russian client, oligarch Dmitry Rybolovlev have settled their acrimonious business dispute

Image Credit: Anne-Gaëlle Amiot

Back in May 2013, Swiss businessman and freeport mogul, Yves Bouvier drew international interest when he negotiated a lower purchase price for the painting  “Salvator Mundi” (Savior of the World), attributed to Leonardo da Vinci, from the artwork's 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.


This 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 suggested 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 finalised.

Immediately after purchasing “Salvator Mundi”, Bouvier flipped the oil painting to his then 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 fertiliser 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.

But by March 2015 Rybolovlev had filed a series of lawsuits against Bouvier in two countries: Hong Kong and Singapore, where he had begin accusing his former business associate of swindling him out of nearly $1 billion via the sale of some 38 works of art for 2.2 billion Swiss francs ($2.5 billion) in total.  During that period, Rybolovlev's legal team succeeded in obtaining a “Mareva injunction”, a legal procedure authorising the near-instantaneous freezing of Yves Bouvier’s worldwide assets.  He followed those up in 2017 and 2019 by filing two complaints in Geneva, Switzerland against Bouvier and his alleged “accomplices for gang fraud and money laundering.

While the legal feud was still in full swing,  the oligarch sold “Salvator at Christie's to Saudi Prince Badr bin Abdullah bin Mohammed bin Farhan al-Saud in November 2017 for $450.3 million.  Shortly thereafter when the buyer was announced, news reports declared that the painting would be publicly displayed on September 18, 2018, at the newly opened Louvre in Abu Dhabi.  But that never happened. 

By December 2019 Dmitry Rybolovlev long-running legal battle with the art dealer had begun to seriously fizzle. First, before the Monaco appeals court, after he himself was charged in relation to a probe into influence peddling and corruption  involving Monegasque government officials, and allegedly justice minister, Laurent Anselmi who resigned during the scandal. Then things went quiet, with both sides apparently in private negotiations, working towards a settlement.  

On November 20th the Public Prosecutor’s Office in Geneva was informed that Rybolovlev and Bouvier had formally buried the hatchet and according to their respective lawyers, the pair were no longer at logger heads regarding their past business dealings.  

Having reaching an undisclosed agreement, which included the withdrawal of all complaints launched by Yves Bouvier and Dmitry Rybolovlev, as well as those concerning Tania Rappo and Tetiana Bersheda, the former lawyer of the Russian billionaire and a settlement agreeing that the civil case against Bouvier in Singapore will also be terminated "the parties requested that no further action be taken in the criminal proceedings and indicated that they would not be opposed to the case being closed.”  


"The Public Prosecutor's Office closed the procedure for the first time on September 15, 2021 on the grounds that the elements constituting the offences had not been fulfilled and that a procedure, relating to the same facts, had been carried out in Monaco. "

"In a ruling dated 26 July 2022, the Criminal Appeal Division of the Court of Justice overturned this decision and referred the case back to the Public Prosecutor's Office to resume the investigation. Following this ruling, the Public Prosecutor's Office conducted a number of hearings, which did not provide any evidence to raise sufficient suspicion against the defendants."

The prosecution does require Bouvier to pay 100,000 Swiss francs in court costs.


August 13, 2023

Thoughts on the confessions of Cosa Nostra boss Matteo Messina Denaro during his February interrogation

A man of many "pezzini"

As mentioned in an earlier ARCA blog post this week, Matteo Messina Denaro, the former fugutive Cosa Nostra boss, was interrogated on February 13, 2023 for almost two hours at a maximum security prison in Italy.  There, the crime boss fielded many  questions, and sometimes duelled with Palermo prosecutor Maurizio De Lucia and deputy prosecutor Paolo Guido when their questions struck too close to home.   

According to the official transcript of their exchange, which covers 69 printed pages and is marked in several places with the handwritten word “omissis”, (used to mark redactions in the interrogation), the Cosa Nostra boss, curated his words carefully.  In many cases he only only incriminated himself verbally in specific areas where there was already overwhelming evidence of specific and proven actions.  In other instances, he obliquely ignored questions he didn't want to answer, while seemingly going off on tangents, as if he wanted his say on key subjects to be memorialised so that others might read and interpret his statements later. 

Speaking to the two magistrates, Messino Denaro again distanced himself from the murder of Giuseppe Di Matteo.  Repeating what he had previously told investigating Judge Alfredo Montaldo, who had questioned him in relation to another trial in which he is accused of attempted extortion.  The boss admitted to prosecutors De Lucia and Guido that he played a role in the 12 year old's kidnapping on November 23, 1993 and made it clear that seizing the child was a volley designed to coerce the father, Cosa Nostra informant Santino Di Matteo, into retracting statements given to the Anti-Mafia District Directorate (DDA) of Palermo.

Giuseppe was escorted out of horse stables in Villabate by four mafiosi dressed as policemen.  His kidnappers had promised him that they were bringing him to see his father.  Once under their control, the child was held hostage for a total of 779 days in various locations between the provinces of Palermo, Trapani, and Agrigento.  

Ironically, at one point the boy was taken, hooded and locked in the trunk of a car, to a farmhouse in Campobello di Mazara, the same village where Messina Denaro was  found to be hiding at the time of his January 16, 2023 capture.  After years as a hostage, and increasingly becoming a liability to his captors, Giuseppe was strangled to death on January 11, 1996 in the Giambascio countryside outside Palermo. His body was then dissolved in acid. 

Matteo Messina Denaro was involved in the massacres of 1993,
including this one in Florence in via Georgofili

In July of this year, the Caltanissetta court of appeal confirmed Matteo Messina Denaro's life sentence for his role in dozens of murders including Giuseppe's.  The others include: 

  • The May 23, 1992 bombing which killed anti-Mafia magistrate Giovanni Falcone, his wife, and three officers of their police escort as their cars passed near the small town of Capaci; 
  • The July 19, 1992 bombing in Via Mariano D'Amelio (Palermo) which killed Judge Paolo Borsellino and five members of his security detail; 
  • The 1993 bombings carried out at art and religious sites in Milan, Florence and Rome that killed 10 people and injured 40 others: 

During his interrogation Matteo Messina Denaro denied being involved in the trafficking in drugs, but openly admitted to prosecutors other things they already knew and had confirmed, such as having regularly passed pizzinu (small piece of paper, containing sometimes coded messages) with convicted Cosa Nostra “boss of bosses” Bernardo Provenzano, who once headed the Mafia's powerful Clan dei Corleonesi. 

In these messages, sent while both men were already fugitives from justice, Messina Denaro admitted that the pair asked one another for favours, but his admission of his relation with Provenzano during this interrogation wasn't revelatory.  Investigators already had undeniable proof of the pair's communication in the form of ten pizzini, sent between 2003 and 2006, which agents had recovered in Provenzano's hideout when he was captured in Montagna dei Cavalli near Corleone on April 11, 2006. 

The Farm Hideout of Bernardo Provenzano

One of those messages is practically a testament of fealty by Messina Denaro to Provenzano and spoke with deference to the crime boss saying:

"Lei è sempre nel mio cuore e nei miei pensieri, se ha bisogno di qualcosa da me è superfluo dire che sono a sua completa disposizione e sempre lo sarò. La prego di stare sempre molto attento, le voglio troppo bene".  

In another, writing as his nephew "Alessio," Messina Denaro wrote to his Uncle Bernardo saying:

"I know the rules and I respect them, the proof that I know the rules and that I'm respecting lies precisely in the fact that I'm turning to you to fix this unpleasant affair, this for me is respecting the rules.  You tells me that money in life isn't everything and that there are good things that money doesn't can buy. I totally agree with you, because I have always thought that one can be a man without a lira and one can be full of money and be mud." 

Offering both a mundane and fascinating image of himself on the lam, a substantial part of the Corleonese godfather's interrogation statements focus on the time period in his life immediately leading up to his capture.  Perhaps because by this period he understood that the clock was ticking and understanding that a) he couldn't hide forever and b) he needed help from others given his declining health.  

Some of his statements appear to be attempts to exonerate some of those individuals, who have been arrested on suspicion of having helped the Cosa Nostra boss during his illness, including statements in defence of Doctor Alfonso Tumbarello, whom Messina Denaro told the magistrates: 

"knows nothing."

Other individuals close to the boos faired less well during the Messina Denaro's ramblings.  

When speaking about undergoing medical care in Palermo under the false name of Andrea Bonafede, as an outpatient at the multi-specilaity hospital La Maddalena, Messina Denaro described several of the steps he needed in order to obtain false identity documents, knowing that he could not undergo chemotherapy and medical treatment in the state's medical institution directly under his own name. 

In this part of the interview Messina Denaro stated:

"I had a friendship with Andrea Bonafede, but a remote friendship because his father worked for us, for my father and then my father was a friend of his uncle, he had a another uncle suspected mafia convicted of mafia".

Investigators contend that in addition to lending his name, Bonafede received 20,000 euros from the Matteo Messina Denaro to buy a house in western Sicily that would serve as one of the fugitive's hideouts.

Messina Denaro also told the magistrates about a second assumed identity, used in the city of Campobello di Mazara, the Sicilian town that sheltered him.  Here he was known under the pseudonym “Francesco”, a Palermitan man who purportedly relocated from the city to the smaller town while caring for his ailing mother and two elderly aunts.  

Living dual identities while hiding in plain site within the Campobello community, Messina Denaro also admitted that in addition to travelling back and forth to the Palermo hospital for treatment, either alone or with an escort, he had openly visited Campobello's bakeries, greengrocers, and supermarkets.  He also played poker and eat in  local restaurants. Again, nothing extremely revelatory, as receipts and objects found in his hiding places confirm some of the his admitted activities. 

What is more of interest to readers of ARCA's Art Crime blog were the from-the-horse's-mouth affirmations made during this hour and forty minute interrogation that confirm directly from the source that Matteo Messina Denaro's family, and that of his father, Francesco Messina Denaro, capo mandamento in Castelvetrano and head of the mafia commission of the Trapani region, sustained their livelihoods, to some extent, by the proceeds of antiquities crimes.

Messina Denaro's verbal admissions concretise a written statement previously attributed to him, which was already mentioned in an article published in 2009 by Rino Giacalone for Antimafia Duemila.  In that article, the journalist refers to an intercepted "pizzini" written by Messina Denaro where the crime boss wrote almost word for word, what he admitted to during this interrogation.  

"With the trafficking of works of art we support our family."

Francesco Messina Denaro as readers of ARCA's blog may recall was already believed to have been behind the theft of the famous Efebo of Selinunte, a 5th century BCE statue of Dionysius Iachos, stolen on October 30, 1962 and recovered in 1968 through the help of Rodolfo Siviero. 


Matteo Messina Denaro was verbose when speaking to his dead father's and the family's involvement in the illicit antiquities trade.  He also mentions that his family bought from everyone and laundered antiquities illegally removed from Sicily via Switzerland, in an enterprise which supporting some 30 members of his family, including some who were incarcerated and others like himself who were on the run.  But the boss was far more laconic when asked directly if he knew Castelvetrano ancient art dealer Gianfranco Becchina.  In response to the PM's query in this regard, he answered: 

"lo conosco perché è un paesano mio, a prescindere, anche senza i beni... i pezzi archeologici, lo conosco lo stesso,  perché siamo paesani."

In October 2018, following a formal request by the Deputy Prosecutor for the District Anti-Mafia Directorate Carlo Marzella, preliminary reexamination judge of of the Court of Palermo, Antonella Consiglio, dismissed the charge of mafia association against Becchina citing in her decision that the accusations used for the basis of the charge, made originally via testimonies given by verbose mafia defector Vincenzo Calcara, had been deemed "unreliable". 

Back in 1992, Calcara, and now deceased former drug dealer Rosario Spatola,  incriminated Gianfranco Becchina for alleged association with the Campobello di Mazara and Castelvetrano clans, implying that there was a gang affiliate active in Switzerland whose role it was to sell ancient artefacts originating from the mab's black market.  At the time of his testimony, much of Calcara's information was discounted as many were skeptical that he had actual knowledge of the facts he represented or whether he invented things for his own benefit.

Matteo Messina Denaro's statements during his February interrogation however confirm that a network of criminals funnelled numerous illicit antiquities from Sicily through the art market in Switzerland, which flowed onward, into world museums.  But the mafia boss stopped short however, on confirming, by name, whose hands, these works of ancient art passed through. 

Like Provenzano before him, Matteo Messina Denaro, at least for now, seems to be determined to be his own custodian of many secrets, especially those which might openly implicate living individuals, who have direct or indirect relationships with the Cosa boss and result in their arrest and/or convictions.  Facing a terminal illness, Messina Denaro's statements are well-guarded, and for the most part his scant confessions during the interrogation seem wholly performative.  

Like so many mobsters before him, it seems that he plans to carry most of the Cosa Nostra's bloody business dealings with him to his grave. 

By:  Lynda Albertson

September 4, 2022

A Worm(ser) in the IADAA apple barrel

On March 30, 2016 in Paris, France UNESCO held a large multidisciplinary symposium examining the movement of cultural property in 2016.  The Paris event was facilitated in part because of the conflicts ravaging the Middle East, particularly in Iraq and the Syrian Arab Republic, as well as in Libya and in Yemen, which had led to a surge in trafficking in cultural property, mainly archaeological objects.  The meeting was also arranged to discuss how the sale of antiquities could be used to finance crime highlighting Resolution 2199, which had been unanimously adopted by UN Security Council on 12 February 2015.  By holding the meeting UNESCO hoped to:

"bring together for the first time market stakeholders, including representatives of auction houses and online platforms, museum representatives, cultural heritage experts, specialized intergovernmental and non-governmental organizations as well as Member States, to take stock on the situation of the illicit trade in cultural heritage and identify areas to improve synergies and strengthen international cooperation to successfully overcome this worldwide issue."

Invited speaker Vincent Geerling, Chairman of the Board of the International Association of Dealers in Ancient Art (IADAA) and then-director of Archea Ancient Art gallery in Amsterdam told the audience in Paris, as he had previously in Berlin in 2014, that many art dealers and sellers have good knowledge of where their stock originates from, but acknowledged that consignors haven't always kept good paperwork to prove it.  Asking for a show of hands from the audience, Greeling asked if any of the UNESCO invitees had ever inherited an antique from a relative that came without its original collecting documentation.

When discussing collection histories as they relate to the current situation in the MENA region, Geerling proclaimed, complete with an accompanying powerpoint slide, that:

"during the past two years, IADAA has checked with every member to ask if anything from the troubled areas had been offered and they reported back not a single dodgy Syrian or Iraqi object had been offered to any of our members"  

Laster, in June 2016, Geerling spoke again, this time at the ArtConnoisseurs 2016 series, held in conjunction with Cultures – The World Arts Fair in Brussels. 

In that talk, recorded in the video above, Geerling discussed IADAA's strict form of due diligence and highlighted in his slides that the Association maintained a code of ethics which included due diligence guidelines for members dealing in Classical, Egyptian and Near East antiquities. During this lecture Geerling went on to say:

"the past is a funny place, they do things differently there.  In the 1960s and ’70s...the old days... not all dealers in ancient art behaved like virtuous schoolboys, but those who founded the International Association of Dealers in Ancient Art in 1993 understood that a different attitude was vital and acted on the UNESCO 1970 Convention even before their respective governments did."

Geerling also proudly stated that membership [in IADAA] is highly sought after, but hard to achieve, and that applications are rigorously vetted.  Like with the earlier UNESCO presentation, Geerling underscored that:

"During the past two years, IADAA has checked several times with every member to see if they have been offered anything from the troubled areas, and they reported back: no, not a single questionable Syrian or Iraqi object had been offered to any of our members."

I guess he should have widened his illicit antiquities membership query to include Egypt as two of IADAA's French members, Didier Wormser of Galerie l'Etoile d'Ishtar and David Ghezelbash of David Ghezelbash Archéologie are currently under investigation and have been indicted in France for their handling of illicit Egyptian material.  

Wormser's investigation goes back a full two years before Geerling's presentations, to 2014, and started when French authorities begin looking into his involvement in the handling of stolen Egyptian artefacts sold on to the Museum of Fine Arts in Budapest.  During his trial, Wormser admitted to the French court that he had purchased a total of six pieces from a looted Egyptian tomb in the Saqqara necropolis via an offshore, British Virgin Islands company, Finatrading Development Ltd., owned by the controversial Swiss businessman, Yves Bouvier.   


At least one of those, an Egyptian stone lintel, depicting Hau and his wife Khouti " went up for sale in Paris on 29 May 2013.  For 15 years, beginning on/around 2007, the archaeology department of Pierre Bergé et Associés was headed by indicted dealer Christophe Kunicki, a position he held for 15 years prior to his arrest. 

As per the Art Newspaper, while standing trial at the Paris criminal court on 30-31 August 2022, Wormser told the court during his that he "stopped buying from Finatrading because it failed to deliver proper provenance documents." Yet the 61-year-old former IADAA-affiliated dealer didn't stop at the purchase of just one or two items from the Swiss Freeport king.  Investigative documents purport that Galerie L’Etoile d'Ishtar purchased as many as 90 antiquities from Finatrading between 2003 and 2005, and then had those objects shipped from Switzerland by Bouvier's Paris connected firm, Art Transit & Associés SA.  

According to the leaked Panama papers, Yves Bouvier established Finatrading Development Ltd. via the firm Mossack Fonseca law chambers in the BVI in 1995. This startup date is just one year after Yves Bouvier's father formed Expositions Natural Le Coutre S.A., and shortly before his own fast-moving climb to wealth in the art market and freeport worlds.  Bouvier now rents nearly a quarter of the Ports Francs et Entrepôts de Genève Freeport and owns between 5-6 percent of the Swiss firm. 

During the 90-transaction Wormser time frame, as stated in a New Yorker article, Bouvier sold his first painting to Russian oligarch Dmitry Rybolovlev, - Vincent van Gogh’s “Paysage Avec un Olivier.” That pair's art transactions would only begin to raise eyebrows later after the pair fell out and began filing lawsuits against one another.  But the dates of the Wormser and Finatrading Development Ltd. transactions are interesting for another reason.  

Early transactions occur at the same time Swiss Customs, in 2003, uncovered >200 trafficked Egyptian artefacts housed at the Geneva Freeport behind door 5.23.1 in 2002.  That stash, later restituted to Egypt, included two perfectly preserved Egyptian mummies, sarcophagi, statues and various hacked apart coffin faces removed from wooden coffins to be sold onward as mummy masks.  

The 2003 seized ancient objects had been smuggled out of Egypt through a complicated network of identified smugglers which implicated 15 Egyptians, two Swiss residents, two Germans, and one Canadian.  Whether or not the objects Wormser purchased via Bouvier passed through the hands of this clan remains a topic meriting further exploration. 

David Ghezelbash, who opened his own gallery in the heart of the Saint-Germain-des-Prés in Paris in 2007 previously overlapped, in 2005, with indicted FRench dealer Christophe Kunicki at Cabinet Jean-Philippe Mariaud de Serres.  Ghezelbash was himself indicted on 23 March 2022 for receiving, fraud and money laundering in an organized gang and placed under judicial control.  Embroiled in the investigation of the Louvre Abu Dhabi's Egyptian antiquities purchases, the Art Newspaper indicated that Ghezelbash has closed his ancient art gallery though he remains listed as a France-based IADAA-affiliated dealer as of the writing of this article. 

All of which brings me back to the words of IADAA's chairman in June 2016 when Vincent Geerling stated:

"The trade is as horrified by the destruction and iconoclasm as anyone else and we share a common cause in wishing to defeat it.

The trade has more incentive than anyone else to stop the crooks because of the damage they are causing the reputation of the legitimate trade.

We will not find a workable solution unless all parties to the debate work together, including the trade."

Geerling's June 2016 talk also stated that members of the association knows what it takes to sell antiquities: well-provenanced antiquities in glossy catalogues, posh galleries and expensive art fairs.  

I guess two out of three ain't bad. 

ARCA thinks it's time for the trade to put its art market money where its mouth is and to admit that the lack of transparency in the ancient art trade makes it a welcoming home for money laundering and illicit transactions.  One with shell companies and offshore accounts which are designed to shield willing dealers and collectors from risk and which makes law enforcement officers' work in investigating this type of crime all the more difficult. 

It is time for IADAA to stop putting their collective heads in the sand and to honestly admit they have no way of monitoring their membership's actions. 

May 25, 2022

Justice Rendered: The final confiscation of properties and business enterprises of Gianfranco Becchina has been confirmed.

DIA Seizing Gianfranco Becchina assets in 2017

Italy's Direzione Investigativa Antimafia, the country's Anti-Mafia Investigation Department has issued a confirmation confiscation decree based upon a request from the Public Prosecutor's Office of Palermo.  As per this decree, this action finalises the 2017 confiscation of a significant portion of movable, real estate and corporate assets "attributable to a well-known international trader of works of art art and artefacts of historical-archaeological value" long suspected to have links with the Sicilian mafia, in and around the port town of Trapani. 

While the DIA's announcement didn't name the, now, 83 year old dealer living in Castelvetrano, the regional newspapers in Sicily, and the national newspaper in Rome, did. 

For decades the Trapani branch of the Cosa Nostra is believed to have accumulated at least some portions of its wealth through the proceeds of illicit archaeological finds.  Some of which, according to Italy's DIA may have been procured through grave robbers working at the isolated Archaeological Park of Selinunte, one of Sicily's great ancient Greek cities, located near Castelvetrano probably in the service of the Cosa Nostra.  This archaeological site covers some 40 hectares and includes Greek temples, ancient town walls, and the ruins of residential and commercial buildings from Italy's past.  Given its remote location, much of the site has not been formally excavated, and it has been prey to opportunistic looters for decades.

To further dismantle the mafia's operational funding in and around Trapani, in November 2017 Italy's Anti-Mafia Investigative Directorate, through the Court of Trapani's penal and preventive measures section, filed an initial seizure order for all movable assets, including real estate and corporate enterprises attributable to Gianfranco Becchina on the basis of an order issued from the District Attorney of Palermo based upon investigations conducted by the DIA, under the coordination of the Palermo Public Prosecutor's Office on the basis that much of Becchina's accumulated wealth was generated through the proceeds of trafficked antiquities. 

Palazzo dei Principi Tagliavia-Aragona-Pignatelli

The preliminary 2017 order included the seizure of Becchina's cement trade business, Atlas Cements Ltd., Olio Verde srl., his signature olive oil production company, Demetra srl., Becchina & company srl.  Real estate holdings confiscated included some 38 buildings as well as Becchina's portions of Palazzo dei Principi Tagliavia-Aragona-Pignatelli, once the noble residence of the family Tagliavia-Aragona-Pignatelli, which is part of the ancient Castello Bellumvider, (an additional part of this palazzo is owned by the city of Castelvetrano and houses the town hall).  Investigators also seized a total of 24 parcels of land belonging to Becchina, and four vehicles.  In total, the value of the seized assets is estimated to be worth more than 10 million euros. 

Giovanni Franco Becchina (b. 1939) was born in Sicily. In the 1970s, he established a business, Palladion Antike Kunst, in Basel, Switzerland, with his wife Ursula.  For almost forty years Becchina headed one of Italy's most notorious “cordata” (a trafficking cell) in a lucrative criminal enterprise that used gangs of tombaroli to loot carefully chosen and insufficiently guarded archaeological sites throughout southern Italy.

It is well-documented that Becchina and other traffickers like him, laundered their looted antiquities through exhibitions at museums and in private collections with manufactured provenance, providing a thin veneer of respectability to material removed from Italy and laundered through the ancient art market. 

In 2001, Becchina was arrested in Italy and charged with receiving stolen goods, illegally exporting goods, and conspiring to traffic goods. In May 2002, the Swiss and Italian authorities raided Palladion Antike Kunst and three of Becchina’s located storage facilities.  A fourth was raided in 2005. 

In 2011, Judge Rosalba Liso dismissed the charges of receiving stolen goods, illegally exporting goods, and conspiring to traffic goods, due to the expiration of the statute of limitations.  However, the Judge in the case confirmed the seizure order for the 5,919 antiquities Becchina had in stock at the time the 2002 and 2005 search warrants were executed.  Material evidence obtained during these seizures confirmed that Becchina bought antiquities directly from tombaroli. Over 90% came from a single source: convicted tombarolo (and later a capo squadra in his own right) Raffaele Monticelli.

June 14, 2020

On the run high-flying art dealer Inigo Philbrick apprehended

Image Right: "Humidity", 1982 by Jean-Michel Basquiat
acrylic, oilstick, and Xerox collage
In a reality that seems like a scene snatched from the Spanish crime series La casa de Papel, the once-vanished, serial swindler Inigo Philbrick was arrested on Thursday on the Republic of Vanuatu, an archipelago of about 83 islands in the southwest Pacific. The high-wheeling art dealer once operated an HNW fine art business, which included a gallery in Mayfair London, and, beginning in 2018, one in Miami, Florida.
Rudolf Stingel Painting of Picasso, 2012
involved in Inigo Philbrick Lawsuit

According to the unsealed complaint issued by the Southern District of New York, from 2016 to 2019 Philbrick, a U.S. citizen, repeatedly sold multiple high-value artworks to different collectors and investors, sometimes using the same works of art as collateral for loans with financial lenders while intentionally hiding others’ ownership interests.

One of those artworks was a $10 million painting by the contemporary artist Jean-Michel Basquiat titled “Humidity” painted in 1982.  The Basquiat accusation came after Philbrick was already facing allegations that he had sold other artworks, by artists Yayoi Kusama and Rudolf Stingel, to multiple clients. 

By October 2019, Philbrick stopped returning concerned investors' phone calls, and by November 2019 the dealer had no-showed for a hearing in Florida and two scheduled London court appearances, one related to a hearing brought by Singapore-based LLG PTE Ltd., and others by German art investment partnership, Fine Art Partners (FAP GmbH).  Philbrick had been buying and selling paintings for FAP since 2015.

With both of his galleries shuttered and emptied, the Miami branch in such a rush that there was still food left in the refrigerator, the judge in the UK issued a temporary order freezing Philbrick's worldwide assets.  A short while later, Philbrick's own attorney, Robert Landon, filed a motion on November 12 seeking to withdraw from representing his client, but it was too late, the dealer had vanished. 

FAP was already involved in a civil lawsuit with Philbrick in Miami, Florida seeking to recover 14 million dollars worth of art from what has been deemed an elaborate transatlantic Ponzi scheme.  In that instance, the German firm had purchased, among other things, one of Kusama's "infinity mirror" rooms entitled “All the Eternal Love I Have for the Pumpkins” from Philbrick, only to later find out that the artwork had also been sold by the dealer, in 2019, to the Saudi Collection of the Royal Commission for Al-Ula (MVCA).  

With his house of cards rapidly collapsing around him, it first seemed that the pump and dump dealer on the run had decided to lay low in Australia.  Later it was discovered that he had been living on the remote and tiny necklace of 80-odd islands between Australia and Fiji known as Vanuatu, possibly helped by funds he may have stashed in Vanuatu’s offshore banks. 

The Republic of Vanuatu, once known as the New Hebrides, gained its place as an offshore financial center in the early 1970s before the island-state achieved its political independence from Great Britain and France on July 30,1980.   In 2015 it gained unwanted notoriety as an offshore tax haven thanks to the leaked Panama Papers which unmasked many offshore corporate clients’ who hid their wealth via thousands of shell corporations set up in tax lenient locations around the world.

As a result of its AML/CFT deficiencies, Vanuatu has been listed on the FATF's grey list of countries, alongside countries like Syria and Yemen, as well as on the list of uncooperative tax havens that the Organisation for Economic Cooperation and Development (OECD) re-activated in July 2016 at the request of G20 nations.  Purportedly the country is now working on repairing its reputation as a financial pariah. 

Philbrick has been formally charged with Wire Fraud and Aggravated Identity Theft.  Arrested by agents of the Federal Bureau of Investigation on June 11th, the art broker has now been flown some 4000 kilometers from his hide-away to Guam.  Tomorrow evening he will make his virtual initial appearance in the Southern District of New York where it is expected he will plead not guilty.

April 2, 2019

Beautiful April Fools Day pranks and still no sign of Leonardo’s Salvator Mundi


Yesterday, it appears that the art and museum world ran amok with April Fools Day fake news on the whereabouts of Leonardo da Vinci’s Salvator Mundi.

Tongue-in-cheek April 1st reports claimed that the "missing" $450m painting is hanging in US President Trump's private quarters at the White House.   Another  reported that Abu Dhabi planned to trade the painting to neighboring emirate Qatar in exchange for Paris Saint Germain soccer player, footballer Neymar da Silva Santos Júnior, the Brazilian forward.   Neither of course are true.   While its location remains a mystery, the tale of the Salvator Mundi is a complicated one of power, intrigue, betrayal and seemingly immeasurable sums of money ARCA is continuing to follow the controversy surrounding the world's most expensive painting.


January 12, 2019

Salvator Mundi: a tale of power, intrigue, betrayal and seemingly immeasurable sums of money


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.  

Conservator Dianne Dwyer Modestini
at work in her studio. 
Image Credit : AIC
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.


Rybolovlev

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.

With pressure mounting on many fronts and risking to lose a substantial chunk of his empire's fortune, Rybolovlev began expanding his growing galaxy of tax shelters.  On July 16, 2008, through a limited liability company, the billionaire arranged for the off-market purchase of an 18 bedroom, 22 baths, 62,000 square-foot beach-side mansion, named “Maison de l’Amitie” in Palm Beach, FloridaThe property was purchased from owner Donald Trump for a reported $95 million.

515 N. County Road, Palm Beach, FL
Former Maison de L'Amitie estate
Sold by Donald Trump
Image Capture of plot lines after property
is razzed and subdivided.
Why a market-savvy Russian businessman would purchase a property from the future president of the United States, at a $50 million markup, during a real estate downturn, is not clear.  The French Regency-style estate once boasted a garage big enough to accommodate 50+ cars, a 30.5-meter long swimming pool, three guest houses, and bulletproof windows.

But after the real estate deal closed Rybolovlev never moved in.  Later, Palm Beach's newest billionaire bulldozed the entire 6.5-acre estate and split the land into three sellable parcels.  Two of these barren oceanfront plots were then flipped, recouping $71 million of the Russian's initial investment. The third had not been sold by the time of this article's writing.

In 2009 Rybolovlev began making arrangements to move artworks purchased and stored at Geneva's Ports Franc to Bouvier's Singapore freeport, an über-warehouse inaugurated in May 2010 that abuts Singapore's Changi International airport.That same year, Rybolovlev's firm, Uralkali reached an eventual settlement agreement on damages for the industrial accident and payed out a relatively modest $218 million in damages for the harm it caused.

In June 2010, the mining magnate sold 53.2% of his share holdings in Uralkali to three Russian investors for $6.5 billion. The purchasers were:
  • 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.

Still pending divorce, Rybolovlev's continued to add to his constellation of art, businesses, and properties.  Some were also purchased via trusts in the names of family members orchestrated via a company called Xitrans Finance Ltd., mentioned in the Panama Papers, an expose made up of 11.5 million documents leaked via a Panama-based law firm involving the financial dealings of shell companies, many of which were created by large corporations and high net worth individuals, ostensibly for offshore, tax shelter purposes.  As some of Rybolovlev's transactions predate his divorce proceedings, the motives for the shelters he established seem to center on the protection of assets in general.

By 2011 Dmitry had moved from Geneva to Monaco and secured a 66.67 percent ownership majority in the Football club AS Monaco FC.  Likely saving the club from bankruptcy when it was at the bottom of France’s second division list, Rybolovlev would become the football club's president That same year he also completed off-market deals for the purchase of a Hawaiian villa from Will Smith for $20 million and purchased a 20th floor, Central Park West penthouse, once owned by Sandy Weill, the former chairman and chief executive of Citigroup, for $88 million.  Both properties were bought via trusts created in the name of his 22-year-old daughter, Ekaterina Rybolovleva.

It was in this very New York apartment, in March 2013, that Rybolovlev first viewed the painting now attributed to Leonardo.  The viewing was arranged with Sotheby's, surprisingly enough, through Sam Valette, while the billionaire was visiting New York.  If the mogul was already interested in purchasing this work of art in March, it is not quite clear why he would then elect to passively wait until later to buy the painting at a much higher negotiated price via Bouvier.

The sellers of the painting, Simon, Parish, and Adelson, also questioned the sequence of Rybolovlev's private viewing, crying foul formally in 2016 when news of the viewing came to light.  The sellers of “Salvator Mundi” claimed, in Manhattan federal court, that they had been shortchanged on the subsequent higher-priced purchase, Bouvier orchestrated later with Rybolovlev.

Sotheby’s indicated in their own court filings that Valette didn’t realize who the Central Park potential buyer was at the time of the scheduled private viewing.  Though they conceded that he did recognize Rybolovlev from a previous sale, likely that of Gustav Klimt’s “Water Serpents II”, a painting looted in World War II and later sold for $183.8 million in 2012.  Sotheby’s eventually reached a confidential out of court settlement with Simon, Parish, and Adelson though the details of their settlement agreement are private.

Image Credit:  https://www.youtube.com/watchv=ZdXsEGFOdII&t=67s
Screenshot from Video Milliardaire russe Vs marchand d'art
Whatever the circumstances surrounding the sale of the “Salvator Mundi,” it was not long afterward, in 2014, that the relationship between the Russian and the Swiss businessmen turned sour.

Rybolovlev, by then living in a three-story penthouse in une belle époque, overlooking the yacht-filled harbor of La Condamine in Monaco, took his former Swiss art advisor to court, going so far as to have him arrested on his own doorstep after summoning the Swiss dealer to Monaco to discuss an ongoing business transaction.  In court papers filed in multiple jurisdictions, Rybolovlev accused Bouvier of defrauding him of approximately $1bn, for the works of art he purchased via the dealer over the lifespan of their business relationship.

The Russian magnate has claimed that the Swiss dealer had been working as an agent on his direct behalf, on a limited commission basis, but instead took disproportionately large commissions for himself on the art sales he negotiated.  Bouvier, on the other hand, maintains that any agreements made between the pair were never formalized in writing and therefore, as an independent art dealer, he was at liberty to charge the billionaire whatever markup he deemed acceptable in furtherance of closing said deals.

By March 2015 Rybolovlev has filed lawsuits against Bouvier in two countries: Hong Kong and Singapore, where the Swiss dealer was living.  As the litigation raged, the Russian billionaire sought to have Bouvier’s assets frozen.  A lengthy civil standoff between the former business acquaintances began in earnest.

On October 12, 2015, the Russian press announced that the freeport of Vladivostok, overlooking Golden Horn Bay was to be reestablished. The project would be led by Yuri Trutnev, senior adviser to Vladimir Putin, who curiously is also the former mayor of Perm.

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.

Meanwhile,  between November 6 and 7, 2018, as the result of the same SMS messages obtained by the judicial authorities of Monaco from the phone of Tetiana Bersheda, one of Rybolovlev's previous lawyers related to the 2017 charge, the billionaire was taken into custody in Monte Carlo.   Held overnight by law enforcement, his residence was searched as part of an investigation into suspicions of influence peddling where it was suspected that Rybolovlev had been seeking to influence members of the higher echelons of power within the Principality of Monaco.

Upon release from custody, the billionaire was formally named as a suspect in a graft investigation by Monaco's prosecutor general Sylvie Petit-Leclair who confirmed that Rybolovlev was under investigation for "active trading in influence" and "active bribery" involving Monaco's former interior minister Paul Masseron, three police officers, Christophe Haget, Patrick Fusari and Régis Asso, and Philippe Narmino, the Director of Judicial Services (equivalent to the Minister of Justice) as well as Narmino's wife and son.  As a result of this investigation, Rybolovlev would be subject to security constraints on his movement while the court determined whether there was sufficient evidence to hold a trial.

As of 2018 civil litigation between and surrounding the business transactions between Rybolovlev and Bouvier remain ongoing in different jurisdictions including Monaco, Switzerland, Hong Kong, France, and New York, as does the criminal inquiry in Monaco.

Swiss Art Dealer
Yves Bouvier
Image Credit:
Bloomberg Markets Magazine 5/17/15
Bouvier

From 1997 until October 2017, through his Swiss holding company, Euroasia Investment SA, Yves Charles Edgar Bouvier served as the main shareholder in his family's company, Natural Le Coultre. Under his guidance, art and shipping magnate would build the firm into one of the largest specialty firms for the storage, packing, shipping, and conservation of fine art.

At the Swiss Freeport in Geneva, Natural Le Coultre boasted a 22,000 square meter, state-of-the-art, art storage facility where artworks were secured, showcased, and bought and sold in a tax-free setting.  Before selling the firm to the French shipping firm André Chenuein, Natural Le Coultre offered freeport services and consultancies at Ports Francs & Entrepôts de Genève SA in Geneva, as well as in the freeports of Singapore and Luxembourg.

As a result of his shipping firm's extensive connections with international auction houses, curators, galleries, art dealers, and private collectors, Bouvier, a successful entrepreneur, bought and sold art as well as consulted on the private sale and purchase of valuable art.  It was through this line of work, at Ports Franc in Geneva, that Bouvier met Dmitry Rybolovlev for the first time in 2002 when the billionaire visited the Geneva Freeport regarding a Marc Chagall painting, “Le Cirque” the Russian businessman had acquired.   In that instance, Bouvier reportedly assisted the billionaire with documentation related to the artwork's purchase.

In August 2003 Bouvier went on to sell Rybolovlev the first of 38 artworks he would procure and sell to the Russian investor over the span of their business relationship.  The work was “Paysage Avec un Olivier”  by Vincent van Gogh and was sold to the Russian for upwards of $17 million. 

By October 2004 Bouvier had acquired “Les Noces de Pierrette” by Picasso from New York dealer William Acquavella, and this too was flipped to Rybolovlev for a purported $43.8 million. 

Three years later, in 2007, Bouvier would sell Rybolovlev four additional works of art, though it is unclear which four pieces the oligarch puchased during this time period.

Between 2008 and 2013, Bouvier would sell Rybolovlev 28 more works of art.  Some of those include:

Rothko’s “No. 1”, sold in June 2008 for $36 million.

Picasso's “Joueur de Flute et Femme Nue”, sold in 2010 for $35 million.

Amedeo Modigliani's “Nu Couché au Coussin Bleu”, sold in 2011 for $118 million.

Gustav Klimt’s masterpiece “Wasserschlangen II”, sold sometime in 2012 for $183.8 million

Toulouse-Lautrec's “Au Lit: Le Baiser”, sold in February 2013 for €14 million.

 Picasso's “Espagnole à l’Eventail” and “Femme se Coiffant”, sold sometime in 2013 for $27 million.

Paul Gaugin’s “Otahi”, sold sometime in 2013 for $120 million.

Paul Gaugin’s “Te Fare”, sold sometime in 2013 for $85 million.

Auguste Rodin’s sculpture “L’Eternel Printemps, sold sometime in 2013 for $48.1 million.

Auguste Rodin’s sculpture “Le Baiser Grand Modele”, sold sometimes in 2013 for $10.4 million.

Rene Magritte's “Le domaine d’Arnheim”, date of sale unknown for $43.5 million;

and lastly,

Leonardo da Vinci’s “Salvator Mundi”, which sold in May 2013 for $127.5 million, the price he obtained being uplifted $44 million over his own negotiated purchase price that same year.

In 2014 Bouvier had also been negotiations for one additional deal with Rybolovlev, the sale of Mark Rothko’s “No. 6” (Violet, Green and Red) for a purchase price of $80 million, but the pair's relationship came to a stormy end before this sale could become finalized.

Bouvier was arrested in early January 2015 in Monaco on suspicion of fraud and money laundering in the Principality of Monaco. The investigation was based on Rybolovlev’s claim that the Swiss dealer had cheated him out of $1 billion by gouging him on the fees he charged for artworks purchased via the Swiss dealer.  Spending one night in jail, Bouvier was released from custody on a €10 million bail and formally indicted on February 25, 2015, on charges of fraud and complicity in money laundering.

By March 2015 Rybolovlev had also filed civil lawsuits against Bouvier in Hong Kong and Singapore, where the Swiss dealer was then living, asking that the authorities freeze all of Bouvier’s assets.  The same month, Switzerland’s Federal Department of Finance began their own investigation of Bouvier on “suspicion of serious tax infractions” estimating the dealer might be responsible for as much as $175 million in unpaid Swiss income tax.

In April 2015, Bouvier resigned from his position running Luxembourg’s Le Freeport, purportedly to focus on his defense.

Picasso Watercolors:
“Femme se Coiffant” and “Espagnnole à l’eventail”
Around the same dates Catherine Hutin-Blay, the only daughter of Pablo Picasso‘s second wife Jacqueline Roque, filed a legal complaint against Bouvier asserting that two of the artist's watercolours, “Femme se Coiffant” and “Espagnnole à l’eventail”, both portraits of her mother and subsequently sold by Bouvier to Dmitry Rybolovlev in 2013, had been stolen.

After much back and forth the Court of Appeal of Singapore ruled in April 2017 that Switzerland was a more appropriate forum for Bouvier and Rybolovlev to settle their ongoing civil lawsuit.   And by October 2017 Natural Le Coultre was then sold to one of its competitors, the French shipping firm André Chenuein.

As of 2018 civil litigation between and surrounding the business transactions between Bouvier and Rybolovlev remain ongoing in different jurisdictions including Monaco, Switzerland, Hong Kong, France, and New York.

Saudi Prince Badr bin Abdullah bin Mohammed bin Farhan al-Saud

“Salvator Mundi” was apparently purchased by Saudi Prince Badr bin Abdullah bin Mohammed bin Farhan al-Saud on November 15, 2017, after registering to bid with Christie's only one day before the sale.

Prince Badr comes from the cadet branch, Al Farhan, an arm of the royal family that does not trace its lineage to the founder of the modern kingdom, King Abdulaziz ibn Saud.  As far as can be determined, Prince Badr had not, publically, collected art in the past and was unknown to Christie's as a buyer, prior to his registering to bid for the Leonardo work.

Badr is reportedly close to Saudi Crown Prince Mohammed Bin Salman, who has been known to align himself with second and third-generation princes, like those in the Farhan al-Saud branch, in his pursuit of cultivating a loyal cadre of less powerful subordinates.

During the frenzied New York auction, and unbeknownst to the winning Saudi bidder, the paddle war that drove the price to its impressive level was with a designated representative of United Arab Emirates ruler, crown prince of Abu Dhabi Mohammed bin Zayed al-Nahyan, (“MBZ”), who had also directed a representative to bid on the painting.

The news of Prince Badr's winning bid was revealed in the New York Times on December 6, 2017 and included speculation that the purchase may have been made on behalf of Saudi Crown Prince Mohammed Bin Salman, (“MbS”).  This despite the fact that just two weeks earlier, on November 4, 2017, the country's extravagant ruler had as many as 500 prominent Saudi Arabian princes, government ministers, and businessmen detained and their accounts frozen in what was stated to be an anti-corruption drive.

Prince Badr bin Abdullah bin Mohammed bin Farhan Al Saud holds a bachelor’s degree in law from King Saud University and was appointed as the first and current Minister of Culture in the Kingdom of Saudi Arabia following a major Saudi Cabinet reshuffle on June 2, 2018, at which point the Former Ministry of Culture and Information was renamed the Ministry of Information.

Prince Badr is also the CEO of the Misk Institute for Arts and worked with the institute’s team under the auspices of Prince Mohammed Bin Salman’s Misk Foundation, formed in 2011, to achieve Saudi's objectives in enabling international cultural diplomacy and art exchange.  In keeping with his present roles, by royal decree in July 2017, Badr was also been appointed to the Royal Commission for Al-Ula formed to promote tourism in the UNESCO World Heritage Al-Ula region with hopes of making its Nabataean tombs more accessible to Saudis and the world.

Prior to his present roles and responsibilities, Prince Badr was listed as the Chairman of the Board of Directors at Saudi Research and Marketing Group (SRMG).

On December 6, 2017, as criticism and speculation over the Saudi purchase roiled in conservative Saudi circles the Louvre museum in Abu Dhabi, made a striking announcement via twitter that the painting “is coming to Louvre Abu Dhabi.”


Two days later, on December 8, 2017, the Saudi government distanced itself from reports that its 32-year-old Saudi crown prince was behind the purchase and the Embassy of the Kingdom of Saudi Arabia in Washington DC issued the following statement:
"Due to the media reporting on the da Vinci’s Salvator Mundi purchase, the Embassy of the Kingdom of Saudi Arabia in Washington, D.C. inquired from His Highness Prince Badr Al Saud’s office on the details related to the art piece’s purchase. Upon reaching out, the Embassy learned through information conveyed by His Highness's office that the art work was acquired by the Abu Dhabi Department of Culture and Tourism for display at the Louvre Abu Dhabi in the United Arab Emirates and that HH Prince Badr, as a friendly supporter of the Louvre Abu Dhabi, attended its opening ceremony on November 8th and was subsequently asked by the Abu Dhabi Department of Culture and Tourism to act as an intermediary purchaser for the piece."

That same date the Louvre Abu Dhabi again tweeted, echoing the Saudi official statement that the “Salvator Mundi” had been acquired by the Department of Culture and Tourism - Abu Dhabi on the museum's behalf.



Why Prince Badr would bid for the UAE museum in direct contest with another UAE bidder has never been explained.  What is known is that Saudi Crown Prince Mohammed Bin Salman is a close ally to his counterpart in Abu Dhabi, Crown Prince Mohammed bin Zayed al-Nahyan and once purchased the 26-bedroom luxury yacht known as "The Topaz", originally owned by Mansour Bin Zayed, the brother of the UAE Crown Prince, for $450 million perhaps in a swap for the painting.

On September 3, 2018, Reuters news service, reported that they had been shown a document that illustrated that Prince Badr had been authorized to purchase the artwork, on behalf of the Abu Dhabi Department of Culture and Tourism.  Who "authorized" him, or when, is not stated in the brief news report, nor has the nature or details of this document been made public. What is known is that the painting has still not gone on display at the Louvre in Abu Dhabi despite the earlier September 18, 2018 exhibition date announcement by the UAE museum.

Where the painting is now, remains an unsolved mystery, as no news has officially been released by either the museum or the Abu Dhabi Department of Culture and Tourism since the September 8, 2018 announcement that the planned unveiling of the Leonardo at the museum had been postponed.

In closing to this long article, a look at Prince Badr's twitter feed brings us full circle back to Russia.

On November 16, 2018 Prince Badr writes:

"We accepted the invitation of our friends in Russia to participate in the St. Petersburg International Cultural Forum. It was a great opportunity to further strengthen cultural cooperation and meet with President Vladimir Putin.
@KremlinRussia @KremlinRussia_E  #SPBICF2018"


Also, Saudi's crown prince's fascination with pricey yachts, also apparently includes yachts formerly-owned by Russian billionaires.  In 2015 Crown Prince MbS purchased the Italian built, 134-meter "Serene" on the spot from exiled Stolichnaya vodka magnate, Yuri Scheffler for $458 million

From Russia, with Love.

East-West tensions, mysterious sheiks, a brewing Cold War, mixed with betrayals, pricey divorces, and the chess games of power and influence.  If only Ian Fleming had lived to write a sequel.