Scandal

JLT warns art dealers after £8.5 million painting forgery

Major broker Jardine Lloyd Thompson has warned art dealers against the impact of art forgeries after the painting An Unknown Man, thought to be by Dutch artist Frans Hals and sold for £8.5 million was recently declared fake. 

According to Sotheby’s, tests revealed that the painting was “undoubtedly” forged. The firm had “rescinded the sale and reimbursed the client in full.”

JLT warned that in many cases, collectors will not be able to claim against their insurance if they discover that their art pieces are forgeries. However, there are certain policies that cover these cases, according to Daniel Smith, a member of JLT’s Fine Art, Jewellery and Specie team.

“Although the take-up of this sort of policy is relatively low, I think we’ll start to see a significant increase as the possibilities of more forged Old Masters are uncovered,” he said.

Smith said dealers can purchase professional indemnity insurance to protect themselves from customers’ lawsuits resulting from art forgeries. However, most dealers don’t bother getting cover because of the costly nature of the policy, Smith noted.

“In light of this recent issue as well as a number of similar high-profile forgery cases this year, I would urge dealers to consider safeguarding themselves against the impact – both in terms of money and reputation – that cases such as these can have on their business,” Smith said.

What we learned from the Knoedler fakes scandal

Are collectors “stupid” to spend millions of dollars on a work of art without personally investigating its authenticity? This is what Robert Storr, the former dean of Yale University School of Art argues.

Storr was speaking at a panel hosted by Ifar (International Foundation for Art Research) in New York in July about the issues raised by the Knoedler fakes scandal, which resulted in the illustrious New York gallery’s closure. Knoedler and its former director claim they were duped by the forgeries of paintings by Rothko, Motherwell and Pollock, among others, as much as their customers were.

The question of who should investigate authenticity remains hotly contested. “If you’re dealing with a reputable dealer and getting… promises and information, you should be able to rely on that,” said John Cahill, who represented two Knoedler plaintiffs, at the event. Adam Sheffer, the president of the Art Dealers Association of America, believes that the buyers of the Knoedler fakes could have done more. “They could have worked with the gallery to ask questions… Everyone needs to take responsibility,” he said.

Former director of scandal-beset Knoedler Gallery breaks her silence

In 2009, two years before news of the Knoedler Gallery’s US$70m sale of fake Abstract Expressionist paintings began to emerge, Ann Freedman resigned as director. Two years later, the venerable gallery closed down and the lawsuits against Knoedler and Freedman began to flood in. Five settled. The first to reach trial, brought by the collectors Domenico and Eleanore De Sole, also settled its claims against Freedman on 7 February (and against Knoedler shortly afterwards), just before she was set to take the stand in the New York courtroom. Her testimony had been eagerly anticipated, not least because she has never given her view of the unfolding scandal and her involvement in it. Until now.

Speaking to The Art Newspaper in an exclusive interview, her first in several years, she summed up the situation thus: “There has been a lot of misunderstanding.” We spoke to her in her sun-filled gallery on the Upper East side, FreedmanArt, which she opened in 2011. “Looking back, there can be things I didn’t see at the time… Could I have done some things differently? Not a day goes by that I don’t think about it. I don’t have an answer sitting here. I will at some point probably.”