New York art dealer Lawrence Selender arrested on charges of embezzling 88 million dollars

Last week in Milbruke, New York, was arrested on a well-known art dealer Lawrence Selender (Lawrence Salander), who is manager and co-owner of the gallery Salander-O'Reilly Galleries, located in the Upper East Side ( Upper East Side) - one of the most expensive areas of New York. He was indicted on 100 items, including the theft of a particularly large amount, falsification of documents on business transactions, in order to swindle investors deception, forgery and perjury. The investigation resulted in the arrest, was found 26 victims who were cheated Selender enriched to 88 million dollars. The crimes to which he is accused were committed in the period from July 1994 to November 2007, when the Salander-O'Reilly Galleries closed, and he declared himself bankrupt. The investigation of the case is still ongoing, and, according to the Manhattan District Attorney Robert Morgento (Robert Morgenthau), the amount stolen could be even more than this amount. According to experts involved in the investigation, can be stolen more than $ 100 million.

fraud perpetrated on the two main schemes: Selender sold did not belong to him and kept the money themselves or offer the investors to invest in fraudulent circumstances. Investors in this case were individuals or entities to pay him money in exchange for a share of the work of art. Investment transactions concluded in two ways. For example, Selender told investors that bought the picture for 500 thousand dollars, but has found a buyer willing to pay for a million, and offered him to buy back his 50 per cent for 250 thousand. After the sale, he promised to return the investors money and pay another 250 thousand of income. In the second case, he suggested investors to buy him some work on the original value, and then undertook to resell it at a higher price in exchange for a portion of the profits.

Deception Selendera was that the works in which he offered to invest, bought them in full or in part, it does not really belong. It is also often distorted the terms of the transaction: the real price of the inflated, investors sold more than 100 percent (for example, three people immediately offered to redeem it by 50 per cent of the same picture), said that the client is willing to pay more, but in fact, one did not exist, refusing to pay the proceeds or hide the real amount that should have been paid by an investor holding a difference. In order to conceal his fraud, he offered to investors false account of paper money on the cost, the monthly records.

affected by the action Selendera and owners, who passed by his art gallery Salander-O'Reilly Galleries to sell, display or evaluation of their value. If they sell at an agreed price, they should have received the balance of the proceeds net of commissions owed to the gallery. However Selender often selling products cheaper than it was agreed with the owners, or sold the work, this is not intended, and used them as a means of investment to third parties or to repay debts to a third party.

Among the victims was Selendera Bank of America, where he received a loan for himself and his wife, Julie (Julie). As for the loan he gave a few pieces, in fact, had never belonged to neither him nor his wife. However, submitting false documents about the property, he was able to get in the bank 2 million dollars.

In Selendera found the famous American tennis player John Makinroy (John McEnroe). He gave as an investor, when in October 2003, bought out the fraudster for 2.03 million dollars for 50 percent of the two paintings Arshila Gorky (Arshile Gorky) «Pirate I» and «Pirate II». Then he learned that one of them is stored in the house of another art dealer, and has full rights to the second. However, in 2008, another client Selendera told of their rights to it. In addition, during the investigation revealed that both «Pirata» were on the list of guarantors who Selender used to obtain credit in the Bank of America.

59-year-old Selender spent the stolen money for buying works of the Renaissance, in an effort «to monopolize the market», but also to maintain a luxury lifestyle. He flew on a private plane to Europe, arranged a party for his wife of 60 thousand dollars, and bought it at Sotheby's jewelry at half a million dollars. In addition, he got a house in suburban Milbruke estate with an area of 26.7 hectares.

Selender pleaded not guilty to the charges against him, and judge of the Supreme Court of the state due to Michael (Michael Obus) ordered his release on bail of one million dollars on two conditions: the accused should be handed over to the authorities his passport and not leave outside of New York.

In case Selender will be convicted, he faces up to 25 years in prison on 13 counts of embezzlement in especially large amount of first-degree and 15 years' imprisonment on 10 counts of embezzlement in especially large amount of the second degree. The term can also be extended to other charges.

material produced Catherine Onuchin

Sources: nytimes.com , nydailynews.com , manhattanda.org , artinvestment.ru