NYC Art Dealer Charged With $88M Fraud

By Nick McMaster, Newser Staff

Posted Mar 26, 2009 2:51 PM CDT

(Newser) – A New York art dealer was charged today with stealing $88 million in investments and artwork in what may be an art-world Ponzi scheme, the Times reports. Investors and collectors say they entrusted Lawrence Salander with funds or artwork after the dealer promised hefty returns. In many cases, they were paid a fraction of the funds invested, or never saw the artwork again.

One hedge-fund manager says he gave Salander $3.575 million to buy artwork and was promised $3.725 million in return—but to date, Salander has paid him only $958,332. The family of artist John Crawford filed a lawsuit in 2007, claiming paintings and photographs worth $1.5 million consigned to the gallery were missing. Salander was arrested this morning at his home in Millbrook, NY.

People take cover from the rain in the doorway of Salander-O'Reilly Galleries, Oct. 19, 2007, in New York. (AP Photo)

"The Cornfield," painted 1826, by John Constable. Constable was one of many artists whose work was sold by Lawrence Salander's gallery. (Wikimedia Commons)

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'Painter of Light' Busted on DUI Suspicion

Bankrupt Thomas Kinkade impaired but 'very polite': cops

Madoff Colleague Found Dead in Swimming Pool

Jeffry Picower faced Ponzi scheme lawsuit

Trustee Sues Ruth Madoff for $44M

Bankruptcy trustee says fraudster's wife received more than she'll admit to

Madoff Moved to NC Prison

With transfer, con man begins his 150-year sentence

Madoff's Money Man Sells Rothkos for $310M

Merkin unloads art, but buyer's identity a mystery

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