1 00:00:01,560 --> 00:00:08,200 Speaker 1: Galling mystifying. I think I would get me to a nunnery. 2 00:00:08,600 --> 00:00:12,840 Speaker 1: I mean I would go and do penance, you know, 3 00:00:13,039 --> 00:00:17,759 Speaker 1: go work for some nonprofit in the art world for 4 00:00:17,800 --> 00:00:22,000 Speaker 1: the rest of my career and try to atone for 5 00:00:22,760 --> 00:00:30,440 Speaker 1: whatever had happened. In the grim aftermath of the closing 6 00:00:30,560 --> 00:00:34,920 Speaker 1: of the Nler Gallery, ten lawsuits were filed by cheated customers, 7 00:00:35,800 --> 00:00:41,120 Speaker 1: most notably Domenico and Eleanor desle There saga began with 8 00:00:41,159 --> 00:00:45,080 Speaker 1: a shriek in a Miami hotel room after reading the 9 00:00:45,120 --> 00:00:48,920 Speaker 1: story of the fake Lagrange Pollock in The New York Times. 10 00:00:55,120 --> 00:00:59,120 Speaker 1: Most former customers of the now shuttered gallery just wanted 11 00:00:59,160 --> 00:01:03,920 Speaker 1: to recoup their losses. Investigators concluded that no fewer than 12 00:01:04,080 --> 00:01:07,840 Speaker 1: sixty fake paintings had been created at the direction of 13 00:01:08,160 --> 00:01:14,280 Speaker 1: Fara Rosales. At trial, an accounting expert would testify that 14 00:01:14,360 --> 00:01:18,400 Speaker 1: Freedman and dealer Julian Weissman had sold their clients seventy 15 00:01:18,400 --> 00:01:22,639 Speaker 1: million dollars in fakes, yielding a net income of thirty 16 00:01:22,640 --> 00:01:26,160 Speaker 1: three point seven million dollars for Knodler and generating more 17 00:01:26,200 --> 00:01:30,440 Speaker 1: than ten million dollars in commissions for Anne. This was 18 00:01:30,520 --> 00:01:33,720 Speaker 1: in addition to her salary estimated to be four hundred 19 00:01:33,720 --> 00:01:39,160 Speaker 1: thousand dollars annually. Michael Hammer took his own four hundred 20 00:01:39,160 --> 00:01:44,959 Speaker 1: thousand dollars salary plus of both galleries, a near limitless fund, 21 00:01:45,360 --> 00:01:49,640 Speaker 1: spewing cash to eight thirty one his private holding company. 22 00:01:50,440 --> 00:01:53,800 Speaker 1: As for Rosales, no taxes had been paid from her 23 00:01:53,880 --> 00:01:58,200 Speaker 1: sales to Knodler, so profit estimates varied. The New York 24 00:01:58,240 --> 00:02:00,800 Speaker 1: Times would later declare that Rosa Alice had taken in 25 00:02:00,880 --> 00:02:04,400 Speaker 1: about twenty six million dollars from her sale of paintings 26 00:02:04,400 --> 00:02:07,360 Speaker 1: to the two dealers. That was all money that would 27 00:02:07,400 --> 00:02:10,480 Speaker 1: have to be disgorged, along with some twelve point five 28 00:02:10,520 --> 00:02:17,200 Speaker 1: million dollars due to the i R s. Surprisingly, one 29 00:02:17,280 --> 00:02:20,760 Speaker 1: of the first to settle was Pierre Lagrange himself in 30 00:02:20,800 --> 00:02:25,760 Speaker 1: October two thou twelve. Shouting from the rooftops had earned 31 00:02:25,840 --> 00:02:30,560 Speaker 1: Lagrange some admiration, but also his share of ridicule among 32 00:02:30,680 --> 00:02:35,200 Speaker 1: collectors for buying a painting without doing due diligence. He 33 00:02:35,240 --> 00:02:38,639 Speaker 1: had vowed to get his seventeen million dollars back, but Artsy, 34 00:02:39,040 --> 00:02:42,800 Speaker 1: the online art magazine, published a rumor It's settled for 35 00:02:42,880 --> 00:02:47,040 Speaker 1: six point four million dollars, being first in line for 36 00:02:47,120 --> 00:02:50,959 Speaker 1: a refund, had its advantages. There was likely more money 37 00:02:50,960 --> 00:02:54,880 Speaker 1: in the galleries till to be had. The Desoles, by contrast, 38 00:02:54,960 --> 00:02:58,520 Speaker 1: felt bound by a sense of mission. Their lawsuit was 39 00:02:58,560 --> 00:03:01,840 Speaker 1: aimed at making the true public in a civil trial. 40 00:03:02,680 --> 00:03:06,400 Speaker 1: Having a judge and jury declare FIRA's forgery ring to 41 00:03:06,480 --> 00:03:10,000 Speaker 1: be nothing less than a racketeering conspiracy was the real 42 00:03:10,120 --> 00:03:18,160 Speaker 1: prize for them. Assistant District Attorney Jason Hernandez was taking 43 00:03:18,160 --> 00:03:20,800 Speaker 1: a very different approach. He was trying to make a 44 00:03:20,840 --> 00:03:25,079 Speaker 1: criminal case of the notetor's dealings. Surprisingly, it was far 45 00:03:25,160 --> 00:03:28,520 Speaker 1: from a slam dunk. What we were doing previously is 46 00:03:28,720 --> 00:03:32,160 Speaker 1: sort of your art fraud one on one playbook. You've 47 00:03:32,200 --> 00:03:34,040 Speaker 1: got to prove that the paintings are fake, and you've 48 00:03:34,040 --> 00:03:36,360 Speaker 1: got to prove that someone who sold them knew that 49 00:03:36,400 --> 00:03:39,880 Speaker 1: they were fake. But it was very clear that this 50 00:03:39,920 --> 00:03:44,440 Speaker 1: was going to be especially difficult following our usual kind 51 00:03:44,440 --> 00:03:48,720 Speaker 1: of playbook in this case, because well, there were an 52 00:03:48,800 --> 00:03:53,200 Speaker 1: unusually large number of prominent people who seemingly We're going 53 00:03:53,280 --> 00:03:55,600 Speaker 1: to stand by the paintings and say that they were real. 54 00:03:57,240 --> 00:04:01,360 Speaker 1: That is uncommon, and I could see right away, well, 55 00:04:01,840 --> 00:04:04,440 Speaker 1: you know, how do you get over that? Because if 56 00:04:04,480 --> 00:04:07,440 Speaker 1: the person selling them is showing them to all of 57 00:04:07,480 --> 00:04:11,240 Speaker 1: these esteemed people, and they're saying, yep, looks right to me, 58 00:04:11,280 --> 00:04:14,160 Speaker 1: looks good to me. That's not a criminal case anymore. 59 00:04:14,280 --> 00:04:16,839 Speaker 1: You're not going to be able to prove fraud that 60 00:04:16,960 --> 00:04:19,479 Speaker 1: someone intended to deceive, because they'll say, well, you know, 61 00:04:19,560 --> 00:04:22,400 Speaker 1: this museum director said it was good, and I mean 62 00:04:22,480 --> 00:04:24,960 Speaker 1: you know, and Freeman bought one of the paintings. It 63 00:04:25,080 --> 00:04:32,520 Speaker 1: was well thought out. The truth is all of the 64 00:04:32,560 --> 00:04:36,640 Speaker 1: experts declined to authenticate the paintings in any official capacity. 65 00:04:37,080 --> 00:04:39,800 Speaker 1: They've seen them in passing on the notors walls at 66 00:04:39,839 --> 00:04:42,880 Speaker 1: cocktail parties, but none of the experts had any interest 67 00:04:42,920 --> 00:04:46,080 Speaker 1: and testifying. You gotta remember it's it's a criminal case, 68 00:04:46,080 --> 00:04:48,960 Speaker 1: so you have to prove your case to twelve people 69 00:04:49,880 --> 00:04:53,360 Speaker 1: beyond a reasonable doubt. We weren't really getting anywhere with 70 00:04:53,400 --> 00:04:59,359 Speaker 1: the conventional investigative methods, and the provenance was very difficult 71 00:04:59,440 --> 00:05:02,680 Speaker 1: to di proved. Glafira was alas we know very virtually 72 00:05:02,720 --> 00:05:06,440 Speaker 1: nothing about. She told nod Lern and Freedom that she 73 00:05:06,560 --> 00:05:10,040 Speaker 1: was a brokera representing a family that she wouldn't disclose 74 00:05:10,400 --> 00:05:12,840 Speaker 1: and I can't get hurt to disclose it, so I 75 00:05:12,920 --> 00:05:15,320 Speaker 1: can't issue her a grand jury subpoena and say tell 76 00:05:15,440 --> 00:05:17,440 Speaker 1: me the name. She would just assert her fit in 77 00:05:17,520 --> 00:05:20,760 Speaker 1: them and right and refuse to tell me. My thought was, 78 00:05:21,480 --> 00:05:23,680 Speaker 1: I can kind of through the back door figure out 79 00:05:23,720 --> 00:05:26,920 Speaker 1: whether or not Glafira was Alas represents a family that 80 00:05:27,000 --> 00:05:30,920 Speaker 1: owns these paintings, because if she's lying about that, that 81 00:05:31,320 --> 00:05:33,799 Speaker 1: is going to be a crime that I can charge, Okay, 82 00:05:33,960 --> 00:05:36,080 Speaker 1: because that's in a very important part of the provenance. 83 00:05:36,400 --> 00:05:40,080 Speaker 1: Imagine if she's lying about this actually being a European 84 00:05:40,200 --> 00:05:43,160 Speaker 1: family that bought these and stored them over all these decades, well, 85 00:05:43,600 --> 00:05:46,080 Speaker 1: that is something I can charge her with. So she 86 00:05:46,160 --> 00:05:48,400 Speaker 1: says she's a brokera she says the paintings are not hers. 87 00:05:49,200 --> 00:05:51,560 Speaker 1: I could see that all the money would go from 88 00:05:51,600 --> 00:05:54,240 Speaker 1: the Nobler Gallery once they would purchase them to a 89 00:05:54,320 --> 00:05:56,880 Speaker 1: couple bank accounts, I think two or three in Spain. 90 00:05:57,560 --> 00:06:00,280 Speaker 1: So my thought was, I'm gonna ask Spain that we 91 00:06:00,360 --> 00:06:02,880 Speaker 1: have a treaty with Spain to for their bank records. 92 00:06:03,640 --> 00:06:05,800 Speaker 1: And then if she is a broker, I'm going to 93 00:06:05,880 --> 00:06:12,919 Speaker 1: see or whatever percentage go to the family in Europe 94 00:06:13,640 --> 00:06:15,520 Speaker 1: and it's going to go to a bank account in 95 00:06:15,600 --> 00:06:18,240 Speaker 1: some other country probably and then I lost that country 96 00:06:18,279 --> 00:06:21,039 Speaker 1: to give me the bank records, and you might prevail there. 97 00:06:21,440 --> 00:06:24,440 Speaker 1: You might actually get foreign banks to cooperate and give 98 00:06:24,480 --> 00:06:26,960 Speaker 1: you records that would prove that she had been engaged 99 00:06:27,000 --> 00:06:30,800 Speaker 1: in financial shenanigans. That's right, let's see where the money flows. 100 00:06:31,000 --> 00:06:34,400 Speaker 1: So I took that kind of old approach. Okay, you know, 101 00:06:34,600 --> 00:06:37,919 Speaker 1: follow the money to the sexier world of art fraud, 102 00:06:37,960 --> 00:06:40,480 Speaker 1: where you follow the pigments and those sorts of things. 103 00:06:41,160 --> 00:06:44,400 Speaker 1: And what it showed was that she was lying about 104 00:06:44,480 --> 00:06:48,280 Speaker 1: who owned the paintings. She owned them, someone else owned them, 105 00:06:48,440 --> 00:06:51,600 Speaker 1: but she's keeping all the money. So that gave me 106 00:06:52,080 --> 00:06:55,400 Speaker 1: a fraud charge against her. Okay, you are falsely representing 107 00:06:55,440 --> 00:06:59,800 Speaker 1: to the Nobler Gallery that these paintings belonged to you know, 108 00:07:00,000 --> 00:07:02,120 Speaker 1: then fill in the long story what she told all 109 00:07:02,200 --> 00:07:05,080 Speaker 1: that that yarn she spun about who it belonged to. 110 00:07:06,560 --> 00:07:09,400 Speaker 1: I now have leverage against CFIA. I have a criminal charge. 111 00:07:09,440 --> 00:07:11,400 Speaker 1: It's a lot of money, you know, many millions of 112 00:07:11,440 --> 00:07:14,480 Speaker 1: dollars of paintings, so it's a significant fraud. And then 113 00:07:14,520 --> 00:07:17,240 Speaker 1: on top of that, she is not reporting any of 114 00:07:17,320 --> 00:07:20,760 Speaker 1: this money as income, so there is a tax charge there. 115 00:07:21,120 --> 00:07:23,800 Speaker 1: Nor is she reporting the fact that she has formed 116 00:07:23,840 --> 00:07:27,240 Speaker 1: bank accounts in excess of ten thousand dollars, which is 117 00:07:27,280 --> 00:07:31,120 Speaker 1: another federal crime. So now the deck is stacked way 118 00:07:31,240 --> 00:07:33,679 Speaker 1: high against the FIA Rosol. She's kind of got nowhere 119 00:07:33,720 --> 00:07:39,240 Speaker 1: to run. I have very simple, provable, direct, strong criminal 120 00:07:39,360 --> 00:07:42,760 Speaker 1: charges against her, and now I can kind of use 121 00:07:42,920 --> 00:07:48,200 Speaker 1: that as pressure um to get her to talk unless 122 00:07:48,200 --> 00:07:49,840 Speaker 1: she's willing to spend, you know, a lot of time 123 00:07:49,880 --> 00:07:57,600 Speaker 1: in prison. One night, early in the summer of two thout, 124 00:07:58,440 --> 00:08:02,559 Speaker 1: some eighteen years after his first faithful meeting with Anne 125 00:08:03,000 --> 00:08:07,120 Speaker 1: at a Soho art gallery, law enforcement agents came crashing 126 00:08:07,160 --> 00:08:11,360 Speaker 1: through the front doors of Carlos Andrs. Multimillion dollar home. 127 00:08:13,320 --> 00:08:19,200 Speaker 1: It's very traumatic. They came actually to wake me up. 128 00:08:20,080 --> 00:08:22,240 Speaker 1: It was very early in the morning, at six in 129 00:08:22,320 --> 00:08:24,800 Speaker 1: the morning around the time. And then there was the squad. 130 00:08:25,600 --> 00:08:31,800 Speaker 1: I was sleeping, My daughter was upstairs sleeping. She was 131 00:08:31,840 --> 00:08:34,679 Speaker 1: supposed to go to Spain the next day or that 132 00:08:34,840 --> 00:08:42,240 Speaker 1: day day evening. And they knocked at the door and 133 00:08:42,720 --> 00:08:44,800 Speaker 1: they told me that they were the police and opened 134 00:08:44,840 --> 00:08:50,079 Speaker 1: the door. And I saw them, you know, with their weapons, 135 00:08:50,240 --> 00:08:53,959 Speaker 1: and and I said, can I put something on it? 136 00:08:54,120 --> 00:08:57,640 Speaker 1: And they say, opened it, opened it. Or else. Of 137 00:08:57,760 --> 00:09:00,400 Speaker 1: course I opened the door, I saw the I'm drawn 138 00:09:00,480 --> 00:09:04,480 Speaker 1: in all over my house when they were with the 139 00:09:04,520 --> 00:09:15,520 Speaker 1: way pons pointing everywhere. Uh, and then they took me 140 00:09:17,240 --> 00:09:19,400 Speaker 1: and I wanted to give a hat to my daughter, 141 00:09:19,559 --> 00:09:25,040 Speaker 1: so they didn't let me. Oh, so it was horrible. 142 00:09:29,200 --> 00:09:34,560 Speaker 1: We'll be back in a minute. Brian Scarlatto's fear as 143 00:09:34,559 --> 00:09:37,719 Speaker 1: attorney and family friend took the call while out of 144 00:09:37,800 --> 00:09:41,360 Speaker 1: town on a work trip. I recalled because I was 145 00:09:41,400 --> 00:09:44,160 Speaker 1: in Las Vegas for work, and my wife called to 146 00:09:44,200 --> 00:09:47,280 Speaker 1: say that Glad had been arrested and that there was 147 00:09:47,320 --> 00:09:49,440 Speaker 1: a story in the newspaper, which you know, I looked 148 00:09:49,480 --> 00:09:52,319 Speaker 1: up on the internet, and um, you know, at this 149 00:09:52,400 --> 00:09:54,560 Speaker 1: point had been a friend of ours for a while, 150 00:09:54,679 --> 00:09:56,560 Speaker 1: so I felt like I should look into it since 151 00:09:56,840 --> 00:09:58,960 Speaker 1: you know, it is kind of my area of the law. 152 00:09:59,520 --> 00:10:02,560 Speaker 1: Glafi had just been arrested and so um, we had 153 00:10:02,640 --> 00:10:05,319 Speaker 1: to go into jail to speak to her. But what 154 00:10:05,480 --> 00:10:07,960 Speaker 1: we found out is is that she had really been 155 00:10:08,040 --> 00:10:10,839 Speaker 1: arrested for tax evasion, sort of like al capolm and 156 00:10:11,080 --> 00:10:14,040 Speaker 1: the government couldn't get them, you know, for organized crime. 157 00:10:14,080 --> 00:10:16,240 Speaker 1: They just followed the money, and in Glafira's case, the 158 00:10:16,280 --> 00:10:20,000 Speaker 1: government was able to follow the money. By now, after 159 00:10:20,160 --> 00:10:22,079 Speaker 1: living in Sand's Point for years, had you come to 160 00:10:22,120 --> 00:10:25,280 Speaker 1: suspect Laphia and Carlos might be art thieves. I did 161 00:10:25,360 --> 00:10:28,440 Speaker 1: not suspect anything. They did seem to be very successful. 162 00:10:28,559 --> 00:10:31,800 Speaker 1: But it was extremely shocking, and you know, and it's 163 00:10:31,840 --> 00:10:35,040 Speaker 1: shocking whenever you hear about anybody being arrested, but certainly 164 00:10:35,080 --> 00:10:38,000 Speaker 1: a very nice woman in her you know, later fifties 165 00:10:38,120 --> 00:10:43,120 Speaker 1: like Fra Brian visited Glafira in prison soon after her arrest. 166 00:10:43,640 --> 00:10:46,360 Speaker 1: It was a sobering moment for the family attorney who 167 00:10:46,400 --> 00:10:50,079 Speaker 1: had come to know Carlos and Fia. Well, you go 168 00:10:50,240 --> 00:10:53,360 Speaker 1: in and it's very difficult to get in, and Gafa 169 00:10:53,400 --> 00:10:55,199 Speaker 1: had just been arrested, and in fact, she didn't have 170 00:10:55,320 --> 00:10:57,960 Speaker 1: enough money for shoes because they take your shoes away 171 00:10:58,040 --> 00:11:00,280 Speaker 1: and you need a commissary account then to buy shoes, 172 00:11:00,360 --> 00:11:03,280 Speaker 1: and so she was wearing paper slippers and it was 173 00:11:03,520 --> 00:11:05,920 Speaker 1: very very distraught, you know, just didn't know what was 174 00:11:05,960 --> 00:11:08,480 Speaker 1: going to go on Carlo's head, you know, fled and 175 00:11:08,640 --> 00:11:10,880 Speaker 1: so her daughter, her young daughter is on the outside 176 00:11:10,920 --> 00:11:13,560 Speaker 1: with no parents, I mean solely was maybe twenty years old, 177 00:11:13,600 --> 00:11:17,640 Speaker 1: maybe nineteen years old at this time. It's hard to 178 00:11:17,920 --> 00:11:22,000 Speaker 1: overstate just how lucky Glafira was to have such a 179 00:11:22,080 --> 00:11:25,640 Speaker 1: family friend who was an experienced attorney at this moment 180 00:11:25,720 --> 00:11:30,600 Speaker 1: in her life. After she was arrested, I offered to help, 181 00:11:30,800 --> 00:11:33,280 Speaker 1: largely on a pro bono basis, because all of her 182 00:11:33,280 --> 00:11:37,839 Speaker 1: assets had been seized at that point. Basically, what we 183 00:11:37,920 --> 00:11:40,559 Speaker 1: were able to do is explained to Glafira how this 184 00:11:40,720 --> 00:11:43,079 Speaker 1: was going to play out, that the government had, you know, 185 00:11:43,240 --> 00:11:45,920 Speaker 1: a strong case on the tax evasion charges and that 186 00:11:46,080 --> 00:11:51,600 Speaker 1: carried very significant penalties. Once behind bars, the first order 187 00:11:51,679 --> 00:11:54,840 Speaker 1: of business was for a judge to determine whether Glafira 188 00:11:55,000 --> 00:11:58,800 Speaker 1: Rosalee was a flight risk. We put together I thought 189 00:11:58,880 --> 00:12:03,240 Speaker 1: a very persuasive ca ace thatfa you know, had dual citizenship, 190 00:12:03,760 --> 00:12:06,520 Speaker 1: a boyfriend, with a home into the Dominican Republic, ties 191 00:12:06,600 --> 00:12:10,640 Speaker 1: I believe to Spain, foreign bank accounts, a lot of liquidity, 192 00:12:10,720 --> 00:12:13,480 Speaker 1: a lot of assets, you know, at the time, and 193 00:12:13,559 --> 00:12:17,000 Speaker 1: I'll say it was by no means certain that she 194 00:12:17,040 --> 00:12:20,320 Speaker 1: would be detained because on the other side of the coin, 195 00:12:20,400 --> 00:12:23,360 Speaker 1: I mean, she's never had a criminal case before. She was, 196 00:12:23,920 --> 00:12:26,959 Speaker 1: you know, maybe fifty something, your old woman with a 197 00:12:27,120 --> 00:12:30,520 Speaker 1: daughter here in the United States, and so the defense 198 00:12:30,640 --> 00:12:32,800 Speaker 1: made an argument, a strong argument that hey, you know, 199 00:12:32,880 --> 00:12:34,920 Speaker 1: she's not going to go anywhere. Why would she go anywhere? 200 00:12:34,960 --> 00:12:38,040 Speaker 1: She's got all these ties. But thankfully for us, the 201 00:12:38,160 --> 00:12:40,839 Speaker 1: judge detained her. And although I can't say for certain, 202 00:12:41,320 --> 00:12:45,120 Speaker 1: I would think that being detained would weigh on someone 203 00:12:45,400 --> 00:12:47,959 Speaker 1: and make them more likely to want to cooperate and 204 00:12:48,000 --> 00:12:50,960 Speaker 1: tell us what really happened. The judge said, no, I'm 205 00:12:51,000 --> 00:12:52,959 Speaker 1: going to keep you detained because I think you've you 206 00:12:53,120 --> 00:12:55,960 Speaker 1: you are a flight risk, and so you know, if 207 00:12:55,960 --> 00:12:58,319 Speaker 1: that was that, she she went back into the m 208 00:12:58,400 --> 00:12:59,760 Speaker 1: c C or the m d C, one of the 209 00:12:59,800 --> 00:13:06,719 Speaker 1: two facilities that are used. Well, yeah, you don't want 210 00:13:06,720 --> 00:13:09,040 Speaker 1: to be there, trust me. She was not in the 211 00:13:09,160 --> 00:13:11,800 Speaker 1: most difficult spot where like the terrorists and Burne made 212 00:13:11,800 --> 00:13:14,439 Speaker 1: off go. But no, you don't. You know, you don't 213 00:13:14,480 --> 00:13:16,280 Speaker 1: want to spend any time there. If you can, if 214 00:13:16,320 --> 00:13:22,040 Speaker 1: you can help it. A few months in prison was 215 00:13:22,160 --> 00:13:25,800 Speaker 1: all Glafa needed. The con was over and there was 216 00:13:25,880 --> 00:13:29,480 Speaker 1: no one worth protecting. At the cost of sacrificing her freedom, 217 00:13:30,040 --> 00:13:35,920 Speaker 1: Gafara decided to cooperate, and she provided information about Carlos 218 00:13:36,200 --> 00:13:39,960 Speaker 1: and about Patience, and after it was clear that Glifer 219 00:13:40,160 --> 00:13:42,480 Speaker 1: was telling the truth. The government agreed to release her 220 00:13:42,600 --> 00:13:49,520 Speaker 1: un bail. Rosales spilled the entire story to investigators. In 221 00:13:49,600 --> 00:13:54,280 Speaker 1: September two thirteen, she pled guilty to nine counts, including 222 00:13:54,400 --> 00:13:57,600 Speaker 1: one count of money laundering, one count of wire fraud, 223 00:13:57,920 --> 00:14:02,600 Speaker 1: and three counts of falsifying income tax returns. She had 224 00:14:02,640 --> 00:14:07,560 Speaker 1: pocketed twenty six million dollars and paid no Texas. Despite 225 00:14:07,640 --> 00:14:11,520 Speaker 1: her testimony, Fia was facing as much as nine years 226 00:14:11,559 --> 00:14:15,559 Speaker 1: in prison. But this was only the bail hearing. The 227 00:14:15,679 --> 00:14:20,480 Speaker 1: sentencing would come much later, you know, as we later learned, 228 00:14:20,520 --> 00:14:23,960 Speaker 1: because of her cooperation, really only because of her cooperation, 229 00:14:24,120 --> 00:14:28,280 Speaker 1: we've got the two burgan Tinos brothers and Psian you know, involved, 230 00:14:28,760 --> 00:14:32,800 Speaker 1: and that really broke down the door, okay, to a 231 00:14:32,960 --> 00:14:38,680 Speaker 1: wealth of information that only came from her. But as 232 00:14:39,240 --> 00:14:41,760 Speaker 1: you know most people know, Py Sian as soon as 233 00:14:41,800 --> 00:14:44,200 Speaker 1: he heard that we were on his tail, took off 234 00:14:44,240 --> 00:14:47,400 Speaker 1: to China, a country that does not extradite its own nationals. 235 00:14:48,280 --> 00:14:53,160 Speaker 1: I'm personally much more upset with the Spanish court's decision 236 00:14:53,200 --> 00:15:01,680 Speaker 1: to non extradite the Bergantino brothers. Amazingly, from a criminal standpoint, 237 00:15:02,200 --> 00:15:06,440 Speaker 1: things were looking good for and freedman. If we thought 238 00:15:06,480 --> 00:15:08,760 Speaker 1: that we could prove beyond a reasonable doubt to twelve 239 00:15:08,840 --> 00:15:12,480 Speaker 1: people that other people knew the aspects of the scheme, 240 00:15:12,600 --> 00:15:15,680 Speaker 1: the critical aspects of the scheme, then we would have 241 00:15:15,920 --> 00:15:19,440 Speaker 1: brought a case. But you know, you've got to have proof. 242 00:15:19,520 --> 00:15:21,960 Speaker 1: You've got to have proof that's admissible in court that 243 00:15:22,400 --> 00:15:25,040 Speaker 1: you know someone who was selling the paintings, whether it's 244 00:15:25,760 --> 00:15:28,800 Speaker 1: Fa as the consigner or and you also have to 245 00:15:28,880 --> 00:15:31,840 Speaker 1: prove that she knows that they are fake. So, you know, 246 00:15:32,040 --> 00:15:35,280 Speaker 1: here you're dealing with a situation where a freedman's first 247 00:15:35,280 --> 00:15:38,240 Speaker 1: point of contact, Lafia, is lying to her about the provenance. 248 00:15:38,840 --> 00:15:41,520 Speaker 1: And again the provenance has elements of it that have 249 00:15:41,760 --> 00:15:44,200 Speaker 1: elements of truth. You know, Sorry, it was a real person. 250 00:15:44,360 --> 00:15:47,360 Speaker 1: Herbert was a real person. It is actually the case 251 00:15:47,480 --> 00:15:50,000 Speaker 1: that a lot of art is found, you know, from 252 00:15:50,080 --> 00:15:53,240 Speaker 1: time to time. What we did in this case was 253 00:15:53,440 --> 00:15:56,280 Speaker 1: we took it as far as we thought the evidence 254 00:15:56,320 --> 00:16:05,960 Speaker 1: that we had would take it. FA had done her 255 00:16:06,080 --> 00:16:09,960 Speaker 1: part and broken the case wide open for investigators. The 256 00:16:10,040 --> 00:16:13,240 Speaker 1: bergen Tino's brothers fled the United States for Spain, a 257 00:16:13,360 --> 00:16:17,520 Speaker 1: country beyond the reach of US extradition. The artist patient 258 00:16:17,640 --> 00:16:21,360 Speaker 1: Quan hurriedly returned home to China, another country out of 259 00:16:21,440 --> 00:16:25,000 Speaker 1: reach from u S authorities. That left only Michael Hammer 260 00:16:25,360 --> 00:16:31,480 Speaker 1: and Ann Friedman. Neither would be prosecuted on criminal charges 261 00:16:31,880 --> 00:16:35,760 Speaker 1: or simply wasn't enough proof, but both were still subject 262 00:16:35,840 --> 00:16:39,240 Speaker 1: to civil suits, where a jury only needed to conclude 263 00:16:39,640 --> 00:16:42,320 Speaker 1: that a defendant was more than fifty likely to have 264 00:16:42,400 --> 00:16:48,160 Speaker 1: committed a crime. Monetary settlements from civil suits could inflict 265 00:16:48,200 --> 00:16:51,880 Speaker 1: their own kind of severe punishment. The fear of such 266 00:16:52,040 --> 00:16:55,520 Speaker 1: verdicts had led the Knoedler to settle with Pierre Legrange. 267 00:16:56,760 --> 00:17:00,400 Speaker 1: As for the Souls, their showdown with Ann Eatment and 268 00:17:00,480 --> 00:17:06,440 Speaker 1: the Knodler was about to begin. Some three dozen journalists, 269 00:17:06,560 --> 00:17:10,000 Speaker 1: including our own Michael Schneyerson, who were bent over their 270 00:17:10,080 --> 00:17:14,360 Speaker 1: notepads that day in the classically high ceiling, oak paneled courtroom. 271 00:17:15,440 --> 00:17:19,200 Speaker 1: The trial began on a Monday in January two thou sixteen. 272 00:17:20,280 --> 00:17:22,760 Speaker 1: The list of names who weren't present in court that 273 00:17:22,880 --> 00:17:27,639 Speaker 1: day was almost as interesting as who was. Lafara Rosalee 274 00:17:27,920 --> 00:17:31,960 Speaker 1: wasn't there. Having served three months in jail before admitting 275 00:17:32,040 --> 00:17:35,840 Speaker 1: her guilt, she was now agonizing over what further sentence 276 00:17:36,119 --> 00:17:38,960 Speaker 1: she would have to serve and wondering how she would 277 00:17:39,000 --> 00:17:43,040 Speaker 1: come up with eighty million dollars in compensation for her victims. 278 00:17:46,720 --> 00:17:49,960 Speaker 1: The Bergen, Tino's brothers were still in Spain, Quan was 279 00:17:50,040 --> 00:17:55,080 Speaker 1: in China, even Michael Hammer was absent in court. Hammer 280 00:17:55,160 --> 00:17:58,400 Speaker 1: had not appeared once from behind the Knodler doors since 281 00:17:58,440 --> 00:18:03,640 Speaker 1: the gallery closed, nor granted any interviews. But after eighteen 282 00:18:03,800 --> 00:18:07,280 Speaker 1: years or so of the forgery ring, Michael Hammer looked 283 00:18:07,359 --> 00:18:10,480 Speaker 1: more and more like a key player, no less so 284 00:18:11,040 --> 00:18:15,240 Speaker 1: than Ann Friedman, As much was told in a lawsuit 285 00:18:15,320 --> 00:18:18,080 Speaker 1: filed by one of the victims, casino owner Frank for 286 00:18:18,240 --> 00:18:21,200 Speaker 1: Tita the Third, who in two thousand eight bought a 287 00:18:21,240 --> 00:18:25,200 Speaker 1: fake Rothco for seven point two million dollars. Hammer, the 288 00:18:25,280 --> 00:18:29,000 Speaker 1: complaint detailed, knew that Knodler bought the paintings from Rosale's 289 00:18:29,040 --> 00:18:32,400 Speaker 1: for shockingly low prices and quickly resold them for enormous 290 00:18:32,440 --> 00:18:38,200 Speaker 1: markups for Tita alleged quote. In all, Knoedler resold the 291 00:18:38,359 --> 00:18:41,159 Speaker 1: Rosealves paintings for a total of sixty three point eight 292 00:18:41,240 --> 00:18:46,000 Speaker 1: million dollars, realizing gross profits of approximately forty eight point 293 00:18:46,080 --> 00:18:50,240 Speaker 1: seven million dollars. Hammer, acting on behalf of Notler and 294 00:18:50,520 --> 00:18:53,920 Speaker 1: his foundation eight thirty one, saw two of the tens 295 00:18:54,000 --> 00:18:57,240 Speaker 1: of millions of dollars in profit be distributed largely to 296 00:18:57,400 --> 00:19:09,840 Speaker 1: himself and Ann Friedman through a Friedman and Hammer had 297 00:19:09,880 --> 00:19:12,639 Speaker 1: a meeting in the early days of the scandal, and 298 00:19:12,880 --> 00:19:16,800 Speaker 1: a handwritten memo survived their talk to surface later in 299 00:19:16,960 --> 00:19:21,560 Speaker 1: Fatita's complaint. It was unclear whether the notes were taken 300 00:19:21,640 --> 00:19:25,440 Speaker 1: by Freedman or Hammer, but the sentiments were in technicolor 301 00:19:26,520 --> 00:19:29,639 Speaker 1: Discreet sources are my stock and trade. When one of 302 00:19:29,720 --> 00:19:33,240 Speaker 1: the comments, don't kill the goose that's laying the golden egg, 303 00:19:33,440 --> 00:19:36,480 Speaker 1: went another, and I am not going to change my 304 00:19:36,600 --> 00:19:40,200 Speaker 1: way of doing business. If you were not comfortable, step away. 305 00:19:46,119 --> 00:19:49,000 Speaker 1: And Friedman was in the courtroom the day the desolas 306 00:19:49,119 --> 00:19:54,000 Speaker 1: child began. She sat quietly beside her lawyers, wreathed in 307 00:19:54,080 --> 00:19:57,680 Speaker 1: her soft white curls, dressed in black, beige and gray, 308 00:19:58,240 --> 00:20:01,560 Speaker 1: saying nothing. As the witnesses began to come forward, she 309 00:20:01,800 --> 00:20:04,760 Speaker 1: too would be forced to testify if the trial went 310 00:20:04,840 --> 00:20:10,240 Speaker 1: as planned. Luke Nichoas and Freedman's lawyer, had a novel defense. 311 00:20:10,400 --> 00:20:14,520 Speaker 1: As it turned out. He argued that thess were responsible 312 00:20:14,600 --> 00:20:19,640 Speaker 1: for checking their paintings authenticity themselves. They were, after all, 313 00:20:19,760 --> 00:20:25,160 Speaker 1: sophisticated art buyers. By that logic, Nikos suggested the jury 314 00:20:25,200 --> 00:20:28,960 Speaker 1: shouldn't blame Noldler for selling the their fake art. The 315 00:20:29,080 --> 00:20:33,120 Speaker 1: customers were the ones to blame for buying it. As 316 00:20:33,200 --> 00:20:37,240 Speaker 1: for Anne, she was a salesperson, not an expert. They declared. 317 00:20:38,119 --> 00:20:41,280 Speaker 1: She was just doing her job, selling paintings and earning 318 00:20:41,359 --> 00:20:46,520 Speaker 1: profits for the gallery. Here's Luke Nichos with Anne. I 319 00:20:46,640 --> 00:20:50,200 Speaker 1: certainly wanted to believe, but and I looked at the 320 00:20:50,240 --> 00:20:53,440 Speaker 1: evidence and where the evidence show and what the evidence 321 00:20:53,440 --> 00:20:55,560 Speaker 1: showed to me separate and apart from what Anne was 322 00:20:55,640 --> 00:20:59,600 Speaker 1: telling me was emails from a guy like David ann 323 00:20:59,680 --> 00:21:03,360 Speaker 1: Fam are the most significant experts and at abstract expressionism. 324 00:21:03,720 --> 00:21:07,119 Speaker 1: What did David an Fem say about these works? He 325 00:21:07,240 --> 00:21:09,800 Speaker 1: wrote an email in May of two thousand eight to 326 00:21:09,920 --> 00:21:13,280 Speaker 1: Jack Flamm from the Dadalist Foundation, and that email said, 327 00:21:13,280 --> 00:21:16,840 Speaker 1: I can't think of any reason to deem this newman 328 00:21:17,040 --> 00:21:21,680 Speaker 1: from the Resolves collection. This newman inauthentic. He went on 329 00:21:21,800 --> 00:21:24,679 Speaker 1: to say in the same email, I've seen the Krasners, 330 00:21:24,680 --> 00:21:27,280 Speaker 1: I've seen the Pollux, the roth Codes, the clients and Stills, 331 00:21:27,880 --> 00:21:33,119 Speaker 1: and I believe in these works. Now he acknowledged that 332 00:21:33,200 --> 00:21:36,840 Speaker 1: the story was murky acknowledged that the ownership was unknown. 333 00:21:37,359 --> 00:21:39,320 Speaker 1: But the reality is I saw an email like that 334 00:21:39,520 --> 00:21:41,520 Speaker 1: from David and fam and I thought, if David and 335 00:21:41,680 --> 00:21:44,399 Speaker 1: fem saying that, who am I the lawyer without this expertise? 336 00:21:44,640 --> 00:21:48,159 Speaker 1: Let me dig further. I think it's important to understand 337 00:21:49,000 --> 00:21:51,760 Speaker 1: what I concluded about whether they were authentic or not. 338 00:21:51,960 --> 00:21:55,119 Speaker 1: Wasn't the point. My point is I had no expertise 339 00:21:55,200 --> 00:21:59,080 Speaker 1: in whether they were authentic or not. The core question always, always, 340 00:21:59,200 --> 00:22:03,280 Speaker 1: always was what did Ann Friedman believe and what did 341 00:22:03,359 --> 00:22:10,480 Speaker 1: she have reason to believe based in the facts. Early 342 00:22:10,560 --> 00:22:14,040 Speaker 1: in the trial, attorneys for the plaintiffs presented a fascinating 343 00:22:14,080 --> 00:22:17,320 Speaker 1: exhibit to the court, the Doles eight point three million 344 00:22:17,400 --> 00:22:21,280 Speaker 1: dollar fake Rothcoe. The thing I remember about it being 345 00:22:21,359 --> 00:22:24,720 Speaker 1: physically in the courtroom the most is that the defendants 346 00:22:25,160 --> 00:22:28,000 Speaker 1: immediately wanted a sidebar with the judge because they felt 347 00:22:28,080 --> 00:22:34,159 Speaker 1: that the painting smelled new. This is the dissillis attorneys again. 348 00:22:35,119 --> 00:22:39,960 Speaker 1: I think the issue was, like all artwork that's transported responsibly, 349 00:22:40,200 --> 00:22:43,119 Speaker 1: it was in a wooden crate, so the wood was 350 00:22:43,280 --> 00:22:46,200 Speaker 1: just secured with screws, and the crate got unscrewed, and 351 00:22:46,280 --> 00:22:48,920 Speaker 1: it creates that kind of wood smell in the air, 352 00:22:49,880 --> 00:22:55,119 Speaker 1: which made the painting smell like fresh wood, and so 353 00:22:55,359 --> 00:22:58,879 Speaker 1: they felt it was prejudicial that the painting would smell 354 00:22:59,240 --> 00:23:03,720 Speaker 1: so obvious we like fresh And the judge had to 355 00:23:03,800 --> 00:23:07,399 Speaker 1: go over the and smell the painting to assess, and 356 00:23:08,119 --> 00:23:10,119 Speaker 1: he was, like he said on the record, he was like, 357 00:23:10,160 --> 00:23:12,280 Speaker 1: I can't believe I'm going over to smell the painting. 358 00:23:13,520 --> 00:23:16,199 Speaker 1: Trudge over. He smelled it, and I think they did 359 00:23:16,359 --> 00:23:21,520 Speaker 1: move it. Yeah, yeah, but they left it out, but 360 00:23:21,960 --> 00:23:25,320 Speaker 1: I thought. I remember it was very dramatic. We carried 361 00:23:25,440 --> 00:23:28,840 Speaker 1: the painting over someplace and you know, there was like 362 00:23:28,920 --> 00:23:32,399 Speaker 1: a hush in the room. Were like a gas because 363 00:23:33,040 --> 00:23:34,840 Speaker 1: people in the art world are so used to such 364 00:23:34,920 --> 00:23:37,800 Speaker 1: delicate handling and white glove handling of works like this, 365 00:23:37,960 --> 00:23:39,680 Speaker 1: and you know it was a fake, so that we 366 00:23:39,800 --> 00:23:41,720 Speaker 1: just picked it up with our bare hands. We were 367 00:23:41,760 --> 00:23:44,440 Speaker 1: not professional. There was the other moment, the funny moment 368 00:23:44,480 --> 00:23:48,119 Speaker 1: with the painting, when Pulkari said on the stand, like, 369 00:23:48,440 --> 00:23:50,399 Speaker 1: I think it's supposed to be the other way, you know, 370 00:23:50,520 --> 00:23:53,440 Speaker 1: like its upside down. Even Stephen Poli was one of 371 00:23:53,520 --> 00:23:57,760 Speaker 1: the two quote unquote experts who Knowler had hired and 372 00:23:57,880 --> 00:24:00,920 Speaker 1: paid to look at some of these works, and when 373 00:24:00,920 --> 00:24:03,639 Speaker 1: he testified about the Rothcoe, he testified that it did 374 00:24:03,680 --> 00:24:10,920 Speaker 1: it couldn't usually tell with Rothco's which weighs up. A 375 00:24:11,040 --> 00:24:14,119 Speaker 1: day or two into the trial, the Doles took the 376 00:24:14,240 --> 00:24:19,000 Speaker 1: stand to tell the story of their fake Rothco. Eleanor 377 00:24:19,280 --> 00:24:24,800 Speaker 1: was emotional, Domenico fierce. Both were heartfelt, taking breaks to 378 00:24:24,880 --> 00:24:28,160 Speaker 1: chat up the press, but they would find themselves subject 379 00:24:28,240 --> 00:24:31,800 Speaker 1: to the occasional bit of snarkiness for bringing rich people's 380 00:24:31,880 --> 00:24:37,760 Speaker 1: problems into the courtroom. With the Doles done on cross examination, 381 00:24:38,240 --> 00:24:41,920 Speaker 1: the trial turned to Ann Friedman's list of eleven experts 382 00:24:41,960 --> 00:24:46,320 Speaker 1: whose names she had used to authenticate her paintings. None 383 00:24:46,400 --> 00:24:49,200 Speaker 1: of the eleven had wished to be on that list. 384 00:24:50,720 --> 00:24:54,600 Speaker 1: What emerged was what we showed that trial with the 385 00:24:54,680 --> 00:25:00,520 Speaker 1: witness testimony, that there were no experts who authenticated the paintings. 386 00:25:01,080 --> 00:25:04,080 Speaker 1: For another, it just didn't happen. You know. The story 387 00:25:04,320 --> 00:25:06,800 Speaker 1: that the defendants were selling that they believe the works 388 00:25:06,840 --> 00:25:10,720 Speaker 1: were real and the experts authenticated, that was just absolutely rebutted, 389 00:25:11,119 --> 00:25:16,240 Speaker 1: totally debunked. With respect to David Ampham, he never was 390 00:25:16,400 --> 00:25:22,320 Speaker 1: shown a Rothco despite being the world's leading expert in 391 00:25:22,480 --> 00:25:24,680 Speaker 1: Rothko I don't think it's a coincidence that he was 392 00:25:24,720 --> 00:25:29,400 Speaker 1: never shown any the rathcos not one. Not only had 393 00:25:29,480 --> 00:25:33,560 Speaker 1: I not seen the Disoli painting, I'd never even been 394 00:25:33,600 --> 00:25:37,320 Speaker 1: in the same moon with it. What I got was 395 00:25:37,600 --> 00:25:42,200 Speaker 1: a package with a transparencive a painting, a note for 396 00:25:42,400 --> 00:25:47,359 Speaker 1: man dated July and pretty so this was two thousand 397 00:25:47,400 --> 00:25:51,600 Speaker 1: and five. I picked it up, looks at the transparencies 398 00:25:51,640 --> 00:25:54,240 Speaker 1: were about twenty seconds, and put it in the file, 399 00:25:54,800 --> 00:25:57,200 Speaker 1: filed it away and did not look at it again 400 00:25:57,400 --> 00:26:01,560 Speaker 1: until then. That's the time of the drial. It sounds 401 00:26:01,600 --> 00:26:05,640 Speaker 1: as if Anne was doing her best to circulate your 402 00:26:05,800 --> 00:26:10,720 Speaker 1: name and your approval of this painting. Is that true? Yes, 403 00:26:10,880 --> 00:26:13,680 Speaker 1: it's true. I didn't know of the time. I have 404 00:26:13,920 --> 00:26:16,879 Speaker 1: to say that from the perspective of the present, I 405 00:26:17,000 --> 00:26:21,840 Speaker 1: felt I was being manipulated, and I don't take commory 406 00:26:21,920 --> 00:26:26,040 Speaker 1: to that. And when I saw the letter, which had 407 00:26:26,080 --> 00:26:29,040 Speaker 1: a list of people who had seen the dissol A painting, 408 00:26:29,119 --> 00:26:32,639 Speaker 1: starting with Christopher off Go, followed by myself, I was 409 00:26:32,680 --> 00:26:36,879 Speaker 1: absolutely shocked. I couldn't believe that my name has been 410 00:26:37,000 --> 00:26:40,800 Speaker 1: put in a letter without my knowing it, without my approval, 411 00:26:41,040 --> 00:26:47,280 Speaker 1: and effectively so any buyer, it could be constituted as 412 00:26:47,280 --> 00:26:55,640 Speaker 1: a kind of authentication by Foxing. As the trial entered 413 00:26:55,720 --> 00:27:01,560 Speaker 1: its second week on February sixteen, as of excitement permeated 414 00:27:01,600 --> 00:27:07,520 Speaker 1: the courtroom. After all this warm up, An Friedman was 415 00:27:07,640 --> 00:27:12,240 Speaker 1: due to testify at last. Oddly, however, the judge's chair 416 00:27:12,359 --> 00:27:16,160 Speaker 1: remained empty as the ten am hour came and went. 417 00:27:17,760 --> 00:27:20,960 Speaker 1: At last, the judge reappeared and announced in open court 418 00:27:21,359 --> 00:27:27,359 Speaker 1: that a settlement had been reached from the dess Grins. 419 00:27:27,760 --> 00:27:32,479 Speaker 1: Their gambit had paid off. As for Ann Friedman's lawyers, 420 00:27:32,840 --> 00:27:37,000 Speaker 1: they looked relieved. Whatever they had agreed to pay, it 421 00:27:37,160 --> 00:27:40,960 Speaker 1: was probably less than the million dollar RICO payment that 422 00:27:41,080 --> 00:27:47,439 Speaker 1: Theses were demanding. The trial, however, would continue because Michael 423 00:27:47,480 --> 00:27:50,200 Speaker 1: Hammer and his eight thirty one foundation were not yet 424 00:27:50,280 --> 00:27:55,560 Speaker 1: off the hook. Hammer's chief financial officer testified that Hammer, 425 00:27:55,680 --> 00:28:00,920 Speaker 1: her boss, had awarded himself some twenty luxury cars, including 426 00:28:01,000 --> 00:28:05,200 Speaker 1: a four hundred two dollar Rose Royce and a five 427 00:28:06,200 --> 00:28:10,000 Speaker 1: dollar Mercedes. That was all in addition to a four 428 00:28:10,119 --> 00:28:13,720 Speaker 1: hundred thousand dollars salary he paid himself from his Knodler 429 00:28:13,840 --> 00:28:19,000 Speaker 1: piggy bank. Anne was scheduled to testify that Wednesday against 430 00:28:19,040 --> 00:28:21,520 Speaker 1: her former boss about how much the two of them 431 00:28:21,560 --> 00:28:24,840 Speaker 1: had profited from selling forty plus fake paintings that had 432 00:28:24,920 --> 00:28:28,800 Speaker 1: come through the Knodler. Once again, the judge and counselor 433 00:28:28,840 --> 00:28:33,840 Speaker 1: has disappeared behind closed doors and emerged appearing satisfied a 434 00:28:33,920 --> 00:28:37,040 Speaker 1: private settlement had been reached between the Desoles and A 435 00:28:37,200 --> 00:28:45,600 Speaker 1: thirty one. The trial was finally over some weeks later, 436 00:28:46,240 --> 00:28:50,280 Speaker 1: and agreed to speak to the press. From the start, 437 00:28:50,440 --> 00:28:53,880 Speaker 1: Friedman said she had regarded the David Herbert collection as 438 00:28:53,880 --> 00:28:57,480 Speaker 1: a quote puzzle to be solved. She had tried to 439 00:28:57,680 --> 00:29:01,719 Speaker 1: extract more information from GlyP Era every time Rosalee arrived 440 00:29:01,800 --> 00:29:06,240 Speaker 1: with another painting. Only with Rosalee's confession had an realized 441 00:29:06,680 --> 00:29:11,360 Speaker 1: how thoroughly and classically duped she'd been. Or so she said, 442 00:29:12,680 --> 00:29:15,600 Speaker 1: when you ask a calm artist a question, they say, aha, 443 00:29:16,240 --> 00:29:17,920 Speaker 1: I see what you mean. Let me check it out, 444 00:29:18,320 --> 00:29:22,640 Speaker 1: and miraculously they have the answers and be called. She 445 00:29:22,800 --> 00:29:26,600 Speaker 1: called herself a perfect mark and added I have never 446 00:29:26,760 --> 00:29:31,720 Speaker 1: deliberately done something wrong, which is to say knowingly. But 447 00:29:31,880 --> 00:29:37,080 Speaker 1: then she added a jarring remark, I am terribly sorry 448 00:29:37,160 --> 00:29:40,400 Speaker 1: for anybody hurt or damaged, but let me be clear, 449 00:29:41,080 --> 00:29:44,800 Speaker 1: this is about works of art. I didn't slay anybody's 450 00:29:44,880 --> 00:29:49,960 Speaker 1: first born. We have to have some perspective on suffering, or, 451 00:29:50,080 --> 00:29:53,840 Speaker 1: as a sympathetic historian apparently told her, we all need 452 00:29:54,440 --> 00:30:03,880 Speaker 1: to get over it. More art fraud in a minute. 453 00:30:05,680 --> 00:30:08,920 Speaker 1: The Disilers lawyers felt pleased they've gotten their clients the 454 00:30:09,000 --> 00:30:12,440 Speaker 1: outcome they wanted, but the settlement allowed Freedman to crow 455 00:30:13,120 --> 00:30:15,360 Speaker 1: and declared she would have gladly had the trial go on, 456 00:30:15,960 --> 00:30:17,959 Speaker 1: and was sure that jury would have found her innocent, 457 00:30:18,080 --> 00:30:21,800 Speaker 1: if only on a technicality. The Disols lawyers roll their 458 00:30:21,840 --> 00:30:25,880 Speaker 1: eyes at that things got resolved before the journey got 459 00:30:25,920 --> 00:30:28,560 Speaker 1: to reach its verdict. But you know, we did speak 460 00:30:28,680 --> 00:30:33,360 Speaker 1: to the jurors afterwards. They were completely convinced that she 461 00:30:33,560 --> 00:30:38,080 Speaker 1: knew exactly what she was doing. Despite the fact that 462 00:30:38,160 --> 00:30:40,760 Speaker 1: a jury never actually ruled on the case in court, 463 00:30:41,400 --> 00:30:44,400 Speaker 1: the Doss and their lawyers saw the outcome as an 464 00:30:44,440 --> 00:30:49,480 Speaker 1: overwhelming victory. I think that you're looking maybe you're suggesting 465 00:30:49,560 --> 00:30:52,680 Speaker 1: that you need a verdict through your story. I don't 466 00:30:52,720 --> 00:30:54,720 Speaker 1: think so. I think you need to tell the story 467 00:30:55,000 --> 00:30:57,520 Speaker 1: and put it out there to show what happened. And 468 00:30:57,600 --> 00:31:00,080 Speaker 1: they did a d of that, and it's not a 469 00:31:00,200 --> 00:31:05,240 Speaker 1: coincidence that the five cases that were pending you know 470 00:31:05,320 --> 00:31:08,720 Speaker 1: at the time we settled, also all settled and no 471 00:31:08,840 --> 00:31:11,640 Speaker 1: one went to trial. You know, I'd say, you know, 472 00:31:11,800 --> 00:31:14,840 Speaker 1: no other and Freedman and Freedman didn't step up to 473 00:31:15,000 --> 00:31:17,400 Speaker 1: defend themselves and go to trial on any of those 474 00:31:17,440 --> 00:31:22,000 Speaker 1: five cases that followed. The rulings made it crystal clear that, 475 00:31:22,560 --> 00:31:25,560 Speaker 1: you know, collectors have the right to reasonably rely on 476 00:31:25,680 --> 00:31:29,800 Speaker 1: reputable galleries, and that it's the reputable galleries obligation to 477 00:31:30,000 --> 00:31:32,480 Speaker 1: come forward with what they know and what they don't 478 00:31:32,520 --> 00:31:37,000 Speaker 1: know about works that they're selling. As attorney Luke Nicas felt, 479 00:31:37,000 --> 00:31:39,680 Speaker 1: the settlement only confirmed the case that he had argued. 480 00:31:40,640 --> 00:31:44,760 Speaker 1: Not only was she not prosecuted, but when the superseding 481 00:31:44,800 --> 00:31:49,240 Speaker 1: indictment came out, in which Glafira Resolis had told her 482 00:31:49,360 --> 00:31:52,560 Speaker 1: story to the federal government, it was clear from that 483 00:31:52,720 --> 00:31:57,120 Speaker 1: indictment that Anne was not implicated at all in the 484 00:31:57,320 --> 00:32:02,360 Speaker 1: underlying crime. He had every reason to throw in under 485 00:32:02,400 --> 00:32:05,480 Speaker 1: the bus. Her boyfriend had every reason to throw in 486 00:32:05,720 --> 00:32:09,680 Speaker 1: under the bus. The painter did. Everyone did, and at 487 00:32:09,760 --> 00:32:12,760 Speaker 1: least from that superseding indictment, it was clear they didn't. 488 00:32:13,760 --> 00:32:16,160 Speaker 1: And when you look at all of the information, not 489 00:32:16,320 --> 00:32:18,560 Speaker 1: just pieces of it, and you put it together and 490 00:32:18,680 --> 00:32:22,479 Speaker 1: you ask did Anne believe these works were fake at 491 00:32:22,560 --> 00:32:25,160 Speaker 1: the time, I just don't think you can get there. 492 00:32:25,440 --> 00:32:28,200 Speaker 1: You can say she made mistakes, but the prosecutor needs 493 00:32:28,280 --> 00:32:30,640 Speaker 1: to prove beyond that, and I don't think they could. 494 00:32:35,040 --> 00:32:40,880 Speaker 1: It had now been three years since was arrested, three birthdays, 495 00:32:41,080 --> 00:32:45,320 Speaker 1: three Christmas, is out on bail, nervously awaiting her sentence 496 00:32:45,680 --> 00:32:50,240 Speaker 1: on nine federal charges. During that time, Rosalee had broken 497 00:32:50,400 --> 00:32:53,480 Speaker 1: no laws and had helped prosecutors to the extent that 498 00:32:53,560 --> 00:32:57,880 Speaker 1: she could to track down the Bergantino's brothers. They remained 499 00:32:57,960 --> 00:33:03,400 Speaker 1: at large due to Spain's changing extradition rules. In weighing 500 00:33:03,520 --> 00:33:07,680 Speaker 1: her sentence, Judge Faiala had listened to Lafas story of 501 00:33:07,800 --> 00:33:11,640 Speaker 1: physical and emotional abuse at the hands of Carlos and 502 00:33:11,800 --> 00:33:16,880 Speaker 1: found it credible. As Jason Hernandez suggested, the judge had 503 00:33:16,920 --> 00:33:19,960 Speaker 1: seen a culprit left holding the bag while the rest 504 00:33:20,040 --> 00:33:24,760 Speaker 1: of the ring went free. Enough was enough. In January 505 00:33:24,880 --> 00:33:29,240 Speaker 1: two thousand seventeen, the judge sentenced her to time already 506 00:33:29,320 --> 00:33:34,200 Speaker 1: served eighty two days. Lafra was a free woman. She 507 00:33:34,440 --> 00:33:40,440 Speaker 1: was also broke, but their lives are very difficult because 508 00:33:41,080 --> 00:33:44,520 Speaker 1: everything that they had could be traceable to, you know, 509 00:33:44,680 --> 00:33:49,600 Speaker 1: their art business, which was fraudulent or infected with frauds. 510 00:33:49,680 --> 00:33:52,120 Speaker 1: So everything was seized. Their home was seized, all of 511 00:33:52,160 --> 00:33:54,520 Speaker 1: their money was seized, all of the art was seized, 512 00:33:54,680 --> 00:33:57,400 Speaker 1: and so far in her late fifties, had to build 513 00:33:57,440 --> 00:34:01,959 Speaker 1: herself back up. So she now works part time as 514 00:34:01,960 --> 00:34:05,320 Speaker 1: a hostess in a restaurant in her sixties and as 515 00:34:05,360 --> 00:34:09,120 Speaker 1: a waitress from time to time, and solely is involved 516 00:34:09,160 --> 00:34:12,560 Speaker 1: in the art business and is building her own business 517 00:34:13,040 --> 00:34:16,160 Speaker 1: and knows how to do it right, and is supporting 518 00:34:16,200 --> 00:34:18,840 Speaker 1: her mother. And so you have the story of a 519 00:34:18,920 --> 00:34:22,040 Speaker 1: daughter supporting her mother and their father is still very 520 00:34:22,120 --> 00:34:25,680 Speaker 1: much very antagonistic. Carlos is very antagonistic, but he's he's 521 00:34:25,719 --> 00:34:28,440 Speaker 1: off in Spain. The government, as you probably tried to 522 00:34:28,520 --> 00:34:37,040 Speaker 1: extradate him and was unsuccessful in doing so. The fall 523 00:34:37,160 --> 00:34:40,600 Speaker 1: of the Knodler Gallery would have rippling effects throughout the 524 00:34:40,760 --> 00:34:46,000 Speaker 1: art world. Gretchen Deep and Corn described the seismic shift 525 00:34:46,080 --> 00:34:50,960 Speaker 1: and trust between client and gallery. I think it's terrible 526 00:34:51,040 --> 00:34:55,360 Speaker 1: for the art market. For example, right after the first 527 00:34:55,640 --> 00:35:00,200 Speaker 1: revelations in the New York Times story, the dealer. Our 528 00:35:00,239 --> 00:35:03,920 Speaker 1: current dealer began getting phone calls about, oh dear, it 529 00:35:04,520 --> 00:35:06,920 Speaker 1: is the work that I bought? Is it real? And 530 00:35:07,040 --> 00:35:10,520 Speaker 1: it wasn't only our dealer, it was others. And then 531 00:35:11,239 --> 00:35:16,640 Speaker 1: all of the dealers are under suspicion now because it's 532 00:35:16,719 --> 00:35:24,200 Speaker 1: never been a field that has seemed entirely squeaky clean anyway, 533 00:35:24,440 --> 00:35:27,879 Speaker 1: because things happen, you know, people get better. One person 534 00:35:28,000 --> 00:35:30,479 Speaker 1: gets a good deal, the next person doesn't, and they're 535 00:35:30,840 --> 00:35:35,000 Speaker 1: they're mad, and so, I mean, nobody trusts anybody in 536 00:35:35,120 --> 00:35:38,680 Speaker 1: this kind of world anyway in some way. But this 537 00:35:38,880 --> 00:35:44,280 Speaker 1: made it a hundred times worse. David and fam didn't 538 00:35:44,360 --> 00:35:48,600 Speaker 1: hold back in his blistering opinion of the Knoedler scandal. 539 00:35:49,920 --> 00:35:53,160 Speaker 1: In hindsight, I think the whole Knodler story will go 540 00:35:53,400 --> 00:35:56,080 Speaker 1: down as one of the worst scandals of its kind, 541 00:35:56,800 --> 00:36:00,920 Speaker 1: indeed probably the most shameful for law go in the 542 00:36:01,040 --> 00:36:06,440 Speaker 1: Annals of Martin. What could prove even more interesting is 543 00:36:06,520 --> 00:36:09,879 Speaker 1: a verdict of history upon whoever the gods as being 544 00:36:10,000 --> 00:36:13,720 Speaker 1: of the episode who of the Soldid saga from first 545 00:36:13,800 --> 00:36:24,640 Speaker 1: to Lost, Having followed the fall of the Knodler Gallery 546 00:36:24,719 --> 00:36:28,040 Speaker 1: from the first revelations of forgery through the trial and 547 00:36:28,120 --> 00:36:31,320 Speaker 1: the half dozen settlements, I'd come to realize that this 548 00:36:31,480 --> 00:36:34,799 Speaker 1: case was far from a once in a lifetime phenomenon. 549 00:36:36,000 --> 00:36:40,320 Speaker 1: As we've heard from countless artists, dealers, and collectors, the 550 00:36:40,560 --> 00:36:44,520 Speaker 1: art market has been and remains a target rich environment 551 00:36:44,640 --> 00:36:48,279 Speaker 1: for con artists willing to risk prison time for a 552 00:36:48,400 --> 00:36:53,680 Speaker 1: big score. There's the fascinating case of Intego Philbrick, a 553 00:36:53,880 --> 00:36:58,480 Speaker 1: young and charming London based dealer who oversold fractional shares 554 00:36:58,560 --> 00:37:01,600 Speaker 1: of works by hot new artists in a made off 555 00:37:01,719 --> 00:37:05,960 Speaker 1: like Ponzi scheme. There's also the case of aging artist 556 00:37:06,120 --> 00:37:11,200 Speaker 1: Robert Indiana, creator of the iconic love Works, whose Coterie 557 00:37:11,280 --> 00:37:13,960 Speaker 1: of Assistance on an island off the coast of Maine, 558 00:37:14,560 --> 00:37:18,479 Speaker 1: would be accused of squeezing windfall profits from him, going 559 00:37:18,640 --> 00:37:24,400 Speaker 1: so far as to employ an automatic signature signing machine. Finally, 560 00:37:24,560 --> 00:37:27,319 Speaker 1: there was my own brush with art fraud, in which 561 00:37:27,320 --> 00:37:30,480 Speaker 1: a painting I purchased from an artist I adored through 562 00:37:30,600 --> 00:37:34,080 Speaker 1: his longtime dealer Mary Boone, would end up pitting us 563 00:37:34,160 --> 00:37:37,200 Speaker 1: against each other in a bitter legal battle I never 564 00:37:37,360 --> 00:37:41,520 Speaker 1: could have anticipated. We'll talk about all of those cases 565 00:37:42,040 --> 00:38:13,800 Speaker 1: in our final episode of Art Fraud. Ny Arn't Fraud 566 00:38:13,920 --> 00:38:17,560 Speaker 1: is brought to you by I Heart Radio and Cavalry Audio. 567 00:38:18,160 --> 00:38:23,360 Speaker 1: Our executive producers are Matt del Piano, Keegan Rosenberger, Andy Turner, myself, 568 00:38:23,719 --> 00:38:28,320 Speaker 1: and Michael Snayerson. We're produced by Brandon Morgan and Zach McNeice. 569 00:38:28,800 --> 00:38:33,160 Speaker 1: Zach also edited and mixed this episode. Lindsay Hoffman is 570 00:38:33,320 --> 00:38:36,960 Speaker 1: our managing producer. Our writer is Michael Schneyerson.