De Sole V. Knoedler Gallery - a Field of Red Flags
LONDON| NEW YORK | SAN FRANCISCO| WASHINGTON De Sole v. Knoedler Gallery - A Field of Red Flags Last month, collectors Domenico and Eleanore De Sole settled their claims against the now defunct Knoedler Gallery and its former president and director, Ann Freedman. The settlement, though hardly surprising, left many questions unanswered and raised other interesting ones. Unfortunately, we will never know whether, in the eyes of a jury, the De Soles’ reliance on the representations made by Knoedler and Freedman was reasonably justified, and whether Knoedler and Freedman intended to defraud. The Knoedler Gallery, founded in 1846 and considered a New York institution, was one of the most venerable art galleries in the United States. It survived three wars and several recessions. Knoedler abruptly closed its doors in 2011, succumbing to a series of lawsuits. The demise of Knoedler arguably began in or around 1994, when an obscure Long Island art dealer, Glafira Rosales, met with Freedman, Knoedler’s sole manager and director at the time. Rosales told Freedman that she had a Mexican client who wanted to sell a collection of Abstract Expressionist artworks, but wanted to do so anonymously. Over the next fifteen years, Rosales provided Knoedler with dozens of previously unknown alleged “masterworks” by well-known Abstract Expressionist artists, and Knoedler sold these paintings to its customers. The paintings turned out to be forgeries. In September 2013, Rosales pled guilty to conspiracy to sell the fake artworks, money laundering, and several tax crimes related to the fake art scheme in a criminal action brought against her. In fact, the Rosales paintings were created by a Chinese painter residing in Queens, New York, who received a nominal sum for his creations.
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