2014-12-01 DOJ SDNY press_release 117 KB 4,239 chars

East Hampton Man Pleads Guilty In Manhattan Federal Court To Fraudulent Sales Of Purported Jackson Pollock And Willem De Kooning Artworks

Caption: United States v. Art Collectors, et al.

summary

John Re, 54, of East Hampton, New York, pled guilty to wire fraud for fabricating provenance to sell counterfeit Jackson Pollock and Willem de Kooning artworks, defrauding victims of $2.5 million, using proceeds to buy a submarine later restrained by court order, and faces up to 20 years in prison.

paragraph

John Re pled guilty to one count of wire fraud for a nine-year scheme that defrauded art collectors of approximately $2.5 million by selling forged paintings falsely attributed to Jackson Pollock and Willem de Kooning. He systematically fabricated false provenance histories, ignored repeated de-authentications by experts, and even threatened victims with violence to preserve the fraud. As part of his plea agreement, Re agreed to forfeit $2.5 million, and a submarine—the 'U.S.S. Deep Quest'—purchased with fraud proceeds was restrained by court order pending forfeiture.

narrative

John Re, 54, of East Hampton, New York, pled guilty to one count of wire fraud for orchestrating a nine-year scheme to defraud art collectors by selling counterfeit artworks falsely attributed to Jackson Pollock and Willem de Kooning, resulting in approximately $2.5 million in losses. He fabricated elaborate false provenance histories, claiming the artworks came from the homes of acquaintances of the artists, despite never having discovered or sold any authentic pieces from such sources. Re continued selling the forgeries even after multiple respected appraisers and forensic experts de-authenticated the works, and he resorted to threats of violence when confronted by victims, invoking alleged ties to organized crime. In his plea agreement, Re admitted to knowingly and fraudulently fabricating provenance for every artwork he sold. Proceeds from the fraud were used to purchase the submarine 'U.S.S. Deep Quest,' which a federal judge restrained in partial satisfaction of his $2.5 million forfeiture obligation. Re faces a statutory maximum sentence of 20 years in prison and is scheduled to be sentenced on April 10, 2015. The investigation involved the FBI, Suffolk County District Attorney’s Office, Suffolk County Police Department, and the Village of East Hampton Police Department.

Enriched metadata

Scheme: affinity-fraud (80%)
Court: Southern District of New York
Outcome: pleaded
Victim loss: $2,500,000

Classified affinity-fraud(confidence 80%). EDGAR detection: forms Form D· recall 58% / precision 2%. detection rule →

Extracted insights

Dollar amounts 3

$2.50M $2.5 Million $1M–$10M
$2.50M $2.5 million $1M–$10M
$2.50M $2,500,000 $1M–$10M

Entities 6

person art collectors
person false provenance
person john re
person judge castel
scheme_term one count of wire fraud
person restraining order

Triples 10

John Re Pled Guilty To One Count Of Wire Fraud
John Re Defrauded Art Collectors
John Re Invented False Provenance
John Re Sold Paintings, Sketches, And Pastels
John Re Agreed To Forfeit $2,500,000
Judge Castel Issued Post-Indictment Restraining Order
Restraining Order Restricts Sale Of U.S.S. Deep Quest
John Re Purchased Submarine
John Re Threatened Victim
John Re Is Scheduled To Be Sentenced By Judge Castel

View original DOJ press releasejustice.gov

Extracted body text (4,239c)

Press Release East Hampton Man Pleads Guilty In Manhattan Federal Court To Fraudulent Sales Of Purported Jackson Pollock And Willem De Kooning Artworks Monday, December 1, 2014 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York Defendant’s Submarine, Purchased With Fraud Proceeds, Is Restrained In Partial Satisfaction Of $2.5 Million Forfeiture Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today that JOHN RE, 54, of East Hampton, New York, pled guilty to one count of wire fraud in connection with his nine-year scheme to defraud art collectors who sought to acquire works by famous American artists such as Jackson Pollock and Willem De Kooning, which resulted in approximately $2.5 million in losses to victims. RE pled guilty today before U.S. District Judge P. Kevin Castel. According to the allegations set forth in the Criminal Complaint, other documents filed in the case, and statements made at related court proceedings: From at least March 2005 through January 2014, RE invented a false provenance, the history demonstrating an artwork’s authenticity, for dozens of paintings, sketches, and pastels that he sold to art collectors in order to extract thousands of dollars from his victims for every piece that RE sold. RE persisted in selling these artworks despite his knowledge that their provenance was falsified and despite repeated instances of de-authentication by respected appraisers and experts in the field of forensic analysis. In at least one instance, when confronted by a victim, RE resorted to threats of violence, claiming that his victim should be wary of RE’s purported connections to organized crime. In his plea agreement, RE expressly acknowledged that he has never discovered or sold any work of art found in a home that formerly belonged to a purported acquaintance of Jackson Pollock and Willem De Kooning, as RE had falsely represented to collectors, and RE further acknowledged that he knowingly and fraudulently fabricated such a provenance for every work of art to which he previously attributed such a provenance. RE, 54, of East Hampton, New York, pled guilty to one count of wire fraud, which carries a maximum sentence of twenty years in prison. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes, as any sentencing of the defendant will be determined by the judge. RE also agreed to forfeit $2,500,000, representing the proceeds of RE’s sales of fraudulent artworks. In connection with today’s plea, Judge Castel issued a post-indictment restraining order that effectively restricts RE’s ability to sell a submarine – the “U.S.S. Deep Quest” – pending the satisfaction of RE’s forfeiture debt. RE purchased the submarine in Texas using proceeds he obtained from the fraudulent sale of a purported Jackson Pollock painting in the course of the scheme. RE is scheduled to be sentenced by Judge Castel on April 10, 2015. Mr. Bharara praised the outstanding efforts of the FBI, the Suffolk County District Attorney’s Office, and the Suffolk County Police Department in the investigation. Mr. Bharara also thanked the Village of East Hampton Police Department for their assistance with this case. This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Andrew C. Adams is in charge of the prosecution. Updated May 15, 2015 Component USAO - New York, Southern Press Release Number: 14-346

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