Fancy galleries, fake art

On this week’s new episode, we’re digging into a fake art scheme that federal prosecutors say is the largest in modern U.S. history. 

Over a span of 15 years, a small group of fraudsters laundered 63 bogus paintings worth $80 million through two renowned New York galleries.

The paintings, produced by a Chinese artist in a backyard shed, emulated the styles of famous artists such as Andy Warhol, Mark Rothko and Jackson Pollock. To make them appear timeworn and authentic, the fraudsters used tricks such as emptying the contents of a vacuum cleaner on them and rubbing them with tea bags. 

So how did wealthy buyers get fooled? Reporter Gisele Regatao explains that the galleries purchasing the works may have overlooked indications of questionable provenance. One of them, the Knoedler gallery, continued selling works despite the fact that the International Foundation for Art Research could not confirm one of the paintings it analyzed was legitimate. 

Court records show that between 1994 and 2011, the fakes were the only thing keeping the Knoedler gallery profitable. The business made about $30 million over that period. But take away the fakes, and it would have been more than $3 million in the hole.

Prosecutors never brought criminal charges against the gallery. “The burden on a criminal case is extremely high,” the lead prosecutor on the case, Jason Hernandez, told Regatao. “You have to prove that someone set out to defraud another person. Beyond a reasonable doubt, you have to convince 12 people of that.”

But John Lauro, another former federal prosecutor who now works at a prominent law firm, vehemently disagreed.

“Given the other information in the case, it’s inexplicable why the prosecution did not go forward,” he said. “I’ve seen cases with much less evidence get convictions, much less.”     

Hear the episode. 

Miami police reform how they handle immigrant victims following Reveal investigation

Back in November, we reported that dozens of law enforcement agencies across the country routinely undermine visa protections for immigrants who are victims of crime. Now, in response to that investigation, the Miami Police Department has enacted changes to how it treats these immigrants. 

Miami, like other departments serving large immigrant populations, had created barriers that were never envisioned when Congress created the U visa program 20 years ago to improve trust between police and the immigrant communities they serve. 

Maj. Antonio Diaz, who leads the criminal investigations section, told our reporter Laura Morel that Miami police have changed their rules to bring the department in line with Congress’ intention for the program. The department will vouch for all victims who are cooperative with investigators – a prerequisite for beginning the U visa application process – and no longer will consider whether an arrest was made or a suspect was identified before supporting a visa application, Diaz said.  

“We want to try to encourage as many victims to come forward. When they are a victim of a crime, they need to know we’re going to help,” he said. “We’re not going to be an obstacle.”
 

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