Art, drugs, and money-laundering

From the Art Newspaper:

A Connecticut art broker is awaiting sentence after pleading guilty to involvement in a money-laundering scheme intended to exchange illegal drug proceeds for art. Two New York art dealers charged in the case have not been scheduled for trial.

The federal indictment charges Shirley D. Sack, 74, and Arnold K. Katzen, 63, with conspiring and attempting to sell two paintings for $4.1 million in cash to an undercover agent posing as a drug dealer. According to the defendants, the paintings in question are Amedeo Modigliani’s “Jeune femme aux yeux bleus” valued at around $2.5 million and a pastel by Edgar Degas, “La Coiffure,” valued at around $1.6 million. These were seized by the US.

“Katzen and Sack indicated to the undercover agent that they could resell the paintings overseas as part of the money laundering scheme,” said the US Attorney for the District of Massachusetts, Michael J. Sullivan. The undercover sting investigation, apparently prompted by an informant’s tip, was conducted by the US Customs Service and the FBI. The US alleged that the Connecticut art broker, Alan M. Stewart, who pleaded guilty in December 2001, acted in the money-laundering transaction. The defendants face maximum sentences of 20 years in prison and $250,000 fines.

The article also mentions what prosecutors say was a $20m cocaine deal:

Four people, including a Saudi prince, were recently indicted on narcotics charges in Miami. The indictment cites one of the defendants with money-laundering and seeks forfeiture of two works of art in connection with the deal. The oil paintings, seized by the US in New York, are “Bandits attacking a coach” attributed to Francisco de Goya and “Buste de jeune” attributed to Tsuguharu Foujita.

Posted by David on April 7, 2003 1:30 PM