Reports this week from San Francisco that a local man has been charged with federal mail fraud in the US District Court, and is being held in prison without bail, in relation to a deal to purchase millions of dollars worth of art.
It is claimed that Luke Brugnara, who has already spent time in prison for tax evasion and illegal trout poaching, falsely represented that he was able to purchase $11 million worth of artwork from a New York dealer. The works were then delivered to him without him having to pay a cent - apparently on the basis that he would pay for or return them within five days of receipt.
The San Francisco Chronicle details:
Brugnara made a deal in April to pay $7.3 million to an art dealer from New York for 16 paintings by Willem de Kooning, the Dutch American Abstract Expressionist artist...
Brugnara also agreed to pay $3 million for an Edgar Degas sculpture, $450,000 for a painting by American realist artist George Luks, $160,000 for a drawing by Joan Miró and $145,000 for etchings by Pablo Picasso...
The art dealer, who was not named in the affidavit, asked Brugnara to pay some of the money up front. Brugnara, however, said he shouldn't have to because he had previously bought a Renoir painting for $500,000 and a Picasso drawing from her without any problems...
Brugnara told the dealer that he was opening a museum in San Francisco... When the dealer said she wasn't aware of any new museums opening in San Francisco, Brugnara told her it would actually be in Las Vegas...
The art was shipped in crates from New York to Brugnara's home on Sea Cliff Avenue in San Francisco...
The dealer's subsequent efforts to collect for the artwork were unsuccessful. Brugnara told his lawyer that the art was given to him as a gift and that the works were "unauthenticated and not worth much," according to an attorney representing the dealer.
The dealer went to authorities earlier this month.As a non-American lawyer, it is not clear why the art dealer did not or was not required to bring a cause of action herself. Surely there was some sort of contract of sale that was breached? If only we could all have the FBI bring cases on our behalf. [But seriously, if anyone wants to enlighten us all, please do.]
Source: The San Francisco Chronicle, 30 May 2014
3 comments:
The fact that it's mail fraud indicates that this is probably a US Postal Inspector case, not FBI. If he were charged with interstate transportation of stolen property--it would be FBI
Simone, in answer to your question, the criminal case filed against Brugnara by the U.S. government would not preclude a civil lawsuit against Brugnara by the art dealer. Depending on the claims she may choose to bring she could have 3-6 years (this depends on the applicable statute of limitations) to file a lawsuit, and that case would be entirely independent of this one. As the events are quite recent, it's very likely (assuming he has money) that she will sue him in the future.
Also, it was the FBI, not the Postal Inspector that filed the case.
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