There are several stories up covering the early morning arrest and subsequent 100-count indictment of disgraced art dealer Lawrence Salander. Even with all of the coverage, there are conflicting reports. Most outlets cite the indictments $88 million figure for the size of the fraud but Bloomberg mysteriously says that creditors claim they are owed $500 million. (Salander is accused of selling multiple shares in single paintings but $88m to $500m is a lot of leverage.)
The most detailed of the stories is Judd Tully’s report on ArtInfo.com. Tully gives us these details:
Victims ranged from Renaissance Art Investors, which acquired 328 Old Masters from Salander and then consigned the works back to him to sell, resulting in a $42 million loss; to Earl Davis, the son and heir of painter Stuart Davis, in the hole for $6.7 million.
But the most interesting, difficult fact to believe is this paragraph at the bottom of the New York Times‘s dispatch:
At the arraignment, Ms. Shulman said Mr. Salander’s family was being supported with $25,000 a month by a benefactor. That person, whom she did not name, was considering buying the family’s 66-acre estate in Millbrook for $5.1 million and letting the Salanders remain there, she said.
Art Word Nadoff Arraigned in Manhattan Court (ArtInfo.com)
Art Dealer is Charged with Stealing $88 million (New York Times)