Friday, March 27th, 2009

Bernie and Larry: Soon to be cellmates?

Larry Salander has been newly dubbed the Bernie Madoff of the art world. He now sits in prison awaiting trial for a 100 count indictment. It is alleged that Salander would sell 50% interest in paintings to multiple parties even though he did not own the paintings, use paintings he didn’t own for collateral for loans, and sell and resell the same painting to customers without them being aware of any prior transactions. Currently over 300 million dollars in claims remain in U.S. Bankruptcy Court against the Salander-O’Reilly gallery. Among the alleged victims of Salander and among the worst to be hit by his alleged fraudulent activity that went on for years was Earl Davis, the son of the painter Stuart Davis, who left 96 paintings in the care of Salander. The days of $60,000 parties at the Frick and private jets is over for Salander, at least for now.
source: The New York Times