Spanish police and the FBI have dismantled a multimillion-dollar international art ring for the production and sale of counterfeit limited edition fine art prints of renowned artists including Picasso, Warhol, Dali, Miro and Chagall.
The fraudsters deceived hundreds of customers into buying counterfeit prints – at prices well in excess of their value for inauthentic artwork – through an art dealer, Michael Zabrin, based in north suburban Northbrook. Zabrin primarily sold the works on eBay. In one instance alleged in the indictment, Zabrin offered two etchings for sale on eBay, falsely representing that they were 1968 Picasso etchings from the 347 Series, signed by the artist in pencil, and that they were numbered from an edition limited to 50 prints.
The indictments allege that between July 1999 and October 2007 the defendants together reaped more than $5 million in illegal proceeds from two separate, but overlapping fraud schemes. The bogus works, which were manufactured in Spain and Italy, were sold for between €1,500 (£1,180) and €20,000 to more than 1,000 clients, including eBay buyers.
Two Italians, one Spaniard and four Americans have been charged. If convicted, each count of mail and wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine. The obstruction of justice count carries a maximum penalty of 10 years in prison and a $250,000 fine. Restitution is mandatory and the Court would determine the appropriate sentence to be imposed under the advisory United States Sentencing Guidelines.
“Con artists should not be confused with master artists,” said Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois. “Buyers of limited edition fine art prints, like all other buyers, are entitled to get what they pay for. These indictments are significant because they extend across international borders from one end of the supply chain to the other. While we urge customers to exercise caution and skepticism of deals that appear too good to be true, we are determined to preserve the integrity of an open market.”
