Art of the ‘steal’
Russian billionaire’s suit targets Sotheby’s
A Russian billionaire at loggerheads with his art dealer for years has filed a $380 million suit against Sotheby’s for its alleged role in selling art worth a mere $1 billion for more than $2 billion.
Two entities owned by billionaire Dmitry Rybolovlev brought their civil case to a Manhattan federal court late on Tuesday, accusing the New York auction house of helping a Swiss art dealer con Rybolovlev out of $1 billion.
The dealer, Yves Bouvier, orchestrated Rybolovlev’s purchase of 38 masterworks in 37 transactions (two Picassos were purchased in a single deal) between 2003 and 2015.
The suit claims Bouvier pretended to negotiate with sellers of the masterworks on behalf of Rybolovlev — only to strike secret deals to buy them himself.
It offers as an example the Russian’s purchase of Leonardo da Vinci’s “Christ as Salvator Mundi” in May 2013.
In so-called “hard-nosed” talks preceding the sale, Bouvier sent Rybolovlev’s team an e-mail asserting a $100 million bid would be “rejected without a moment’s hesitation,” according to court papers.
It wasn’t until bidding reached $127.5 million that Bouvier called the deal “clinched,” the papers continued.
Rybolovlev, who made billions in the salt-mining industry, said he paid an invoice for that amount, “relying on Bouvier’s representation that this was the true purchase price,” plus a commission of $1.275 million.
“All of these representations were false,” his suit claims, adding Bouvier had already cut himself a deal to buy the da Vinci masterpiece for $83 million.
The scam allegedly characterized all of Bouvier’s dealings with Rybolovlev — with the adviser repeatedly buying art at a discount, selling them to his client at a premium and, the suit contends, “pocketing the difference for himself.”
It also accuses Sotheby’s of “aiding and abetting” Bouvier’s fraudulent behavior in about a third of the 37 sales to Rybolovlev arranged by the art dealer.
“Before transactions, Sotheby’s gave Bouvier written materials designed to induce [Rybolovlev] to pay inflated, fraudulent prices,” it says. “After transactions, Sotheby’s lent a veneer of legitimacy and expertise to those fraudulent prices by providing Bouvier with inflated appraisals on demand.”
In a statement, Sotheby’s called the suit “entirely without merit.” It also referred to joint litigation by Sotheby’s and Bouvier brought before a Swiss court last year, seeking a declaration that neither party engaged in wrongdoing against Rybolovlev.
“We will be moving to dismiss the action in New York and at the same time we will continue to pursue our case through the Swiss courts,” Sotheby’s said.