Feds sue art dealer for $26.5M

The owner of one of the world's largest art dealerships and his partners in a company formed to purchase contemporary paintings were sued by the federal government on Wednesday to recover $26.5 million in alleged back taxes and penalties.

The suit, filed in Manhattan federal court, is aimed at recovering taxes from art deals carried out by Contemporary Art Holding Corp (CAHC), formed by gallery owner Lawrence Gagosian and others including magazine publisher Peter Brant.

Prosecutors alleged that CAHC, which was established in 1990 to buy 62 works of contemporary art, was at the heart of a complicated scheme in which art was transferred between defendants to evade millions of dollars in taxes.

Posted by David on March 22, 2003 8:21 PM