AO News Summary: New York art dealer, Lawrence Salander, pleads guilty to engineering a $120 million art investment scam

March 19th, 2010

Lawrence Salander, flanked by attorney, Charles Ross (left) and son, Jonah Salander. Image via NY Daily News

Yesterday, the beleaguered New York art dealer, Lawrence Salander, pleaded guilty to engineering a $120 million art investment scam that duped wealthy clients including tennis star John McEnroe and actor Robert De Niro and financial institutions like Bank of America.  The one-time co-owner and manager of Salander-O’Reilly Galleries LLC, admitted to an array of schemes, from selling shares of the same work of art to multiple owners to selling artwork and pocketing the proceeds.  Salander, who filed for bankruptcy in 2008, is expected to be sentenced to six to 18 years in prison and must pay $120 million in restitution to victims under a plea agreement. in which he pleaded guilty to 28 counts of grand larceny in state Supreme Court in New York.

more story and relevant news links after the jump…

“It’s a sad day for Mr. Salander,” attorney Charles Ross told Bloomberg. “It is, however, a good result for him and for those whom he is deeply remorseful about hurting. We are sincerely hopeful he will raise meaningful restitution payments.”

Related Links:
Ex-Gallery Owner Pleads Guilty In $120 Million Art Fraud [WSJ]
Lawrence Salander, art dealer to Robert De Niro’s dad, John McEnroe, to plead guilty to $100M fraud [NY Daily News]
Bankrupt Art Dealer Will Plead Guilty to Fraud, Lawyer Says [Bloomberg]
New York art dealer pleads guilty to swindle [Reuters]
Manhattan gallery owner pleads guilty in massive $120M fraud scheme [NY Post]
The Art of the Steal – full profile of the case [Portfolio Magazine]