$20 Million Art Scam

CNN reports that a couple who sold art through televised auctions admitted selling bogus works and forging signatures of artists including Picasso, Chagall and Dali in a scam that bilked buyers out of millions of dollars. Kristine Eubanks, 49, and her husband, Gerald Sullivan, 51, were charged with conspiracy to commit mail fraud, wire fraud and interstate transportation of stolen property. Eubanks also was charged with tax evasion, and Sullivan was charged with failure to file a tax return. Prosecutors said the couple agreed to cooperate with investigators in an ongoing criminal probe to capture other scam artists. The two have not formally entered pleas. "The defendants in this case have admitted to profiting by preying on the vulnerabilities of producers and consumers of art through an elaborate criminal enterprise," said J. Stephen Tidwell, assistant director of the FBI in Los Angeles. The operation involved the couple's satellite television show "Fine Arts Treasures Gallery." The government estimated the show defrauded more than 10,000 people who paid more than $20 million for bogus art. Investigators seized nearly $4 million when Eubanks and Sullivan were arrested during a raid in September. The couple told authorities they rigged the auctions of art and jewelry by creating inflated bids, and that they purchased fake art, forged art at a print shop and sold the bogus works on their show, according to court documents. Prosecutors said the couple also created false appraisals and certificates of authenticity. Eubanks could face up to 10 years in federal prison; Sullivan up to six. (For full source and article click the Headline) Irish Art