The Art World’s Very Own Ponzi Scheme: Upper East Side Dealer Lawrence B. Salander

27Mar09

salanderoreilly_gallery

By Emily Waldorf

The latest financial scandal to unravel in the face of the recession involves a well-known Upper East Side art dealer who supported a lavish lifestyle through a high-end gallery.  Lawrence B. Salander sold paintings he didn’t own to multiple buyers, cheating investors, collectors, and artists to to the tune of $88 million.  He was just arraigned in Manhattan Criminal Court, and, if he is convicted, he could face a prison term up to 25 years.

According to Judd Tully’s article, “Art World Madoff Arraigned in Manhattan Court,” Manhattan District Attorney Robert M. Morgenthau described Mr. Salander as a fantastic salesman:

This guy ought to be selling toxic loans for the government…One extraordinary sequence involved Brown Still-Life, a Stuart Davis painting owned 100 percent by Earl Davis and consigned to the gallery. In July 1994, a 50 percent stake was sold to Gerald Peters Gallery. In May 2005,Bruce Springsteen manager Jon Landau bought another 50 percent stake in the painting. Then, later that same month, Salander sold another 50 percent share to collector Elaine Rosenberg. And three months later, in August 2005, he sold the entire painting, to San Francisco/Santa Fe gallery Owings-Dewey Fine Art.

Other victims include tennis star John McEnroe and hedge fund manager Roy Lennox.  The indictment accuses Salander and Salander-O’Reilly of larceny, fraud, forgery, falsifying business records and perjury.  Salander pleaded not guilty to all of the charges at the arraignment, and his bail was set at $1 million.

More coverage:

Indicted Art Dealer Salander Waits in Jail, ‘A Broken Person’ (Bloomberg)

Art Dealer is Charged with Stealing $88 million (NY Times)

Advertisements


8 Responses to “The Art World’s Very Own Ponzi Scheme: Upper East Side Dealer Lawrence B. Salander”

  1. I think this is a real great article.Really looking forward
    to read more. Much obliged.

  2. Excellent blog here! Also your site loads up very fast!
    What web host are you using? Can I get your affiliate link to
    your host? I wish my web site loaded up as fast as yours lol

  3. Now I am going to do my breakfast, later than having my breakfast coming again to read more
    news.

    • Someone necessarily help to make ccaitrilly posts I might state. That is the first time I frequented your website page and so far? I amazed with the research you made to make this particular put up extraordinary. Excellent task!

  4. Hi there mates, its wonderful paragraph about teachingand completely explained, keep it up all the time.

  5. I pay a quick visit day-to-day some blogs and websites to read articles, except this
    blog presents feature based posts.

  6. Definitely movement is on the cards when the Chariot seems.
    Start by forgiving yourself, then transfer on to
    others, then back again to you. If you are viewing nines,
    you ought to also be seeing the mild at the finish of a tunnel.

  7. On a day to day basis he works with ordinary people in London helping them to achieve their weight loss, fitness or sporting goals.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: