John McEnroe: Duped in art scam

John McEnroe: Duped in art scam

Former tennis champion John McEnroe was duped along with Bank of America, investment firms, art owners and collectors in an 88 million dollar investment scam revealed in New York on Thursday.

Fifty nine year old art dealer Lawrence Salander, was arrested at his residence at New York home on Thursday, when he and his gallery were charged with one hundred counts, including grand larceny and securities fraud. Manhattan District Attorney Robert Morgenthau has told it during a news conference.

Salander has pleaded not guilty in New York's Supreme Court and his bail was set at $1 million. He has faced up to twenty five years of imprisonment on the most serious charge.

"We intend to vigorously defend against these allegations in the courtroom," added Salander's lawyer Charles Ross.

Moreover all the authorities have identified twenty six victims of Salander's scheme, including McEnroe, who lost 2 million dollars after investing a half share in two paintings, Arshile Gorky's "Pirate I and II." According to the authorities, the share in the paintings was sold at the same time to another collector, and McEnroe never recouped the money.

Morgenthau added that the scheme, which lasted from 1994 to 2007, included the luring investors who paid cash in exchange for shares of ownership of works of art.

Morgenthau said, "He sold artwork not owned by him and kept the money and lured investment money in fraudulent investment opportunities". Salander utilized the money in order to fund "an extravagant lifestyle" of lavish parties and private jets.

It is also reported that at times, Salander overstated the value of paintings for scoring greater investments that were not returned to investors.

The investigation of Salander, the former owner of Salander-O'Reilly Galleries, still is continuing. Other estates that he looked after included the paintings of the late father of actor Robert De Niro.

Renaissance Art Investors, a company focused on investment in old master paintings, lost 45 million dollars in the scheme.

The concerned authorities also added that Earl Davis, the son of American abstract painter Stuart Davis, lost 6.7 million dollars while Bank of America lost 2 million dollars after Salander lied about paintings that he owned for securing a loan.

It is also reported that Hester Diamond, the widow of late renowned New York art dealer Harold Diamond and mother of Beastie Boys' Mike D, lost 6 million dollars.

John McEnroe was also given the alert of the scheme when he came to know about an art collector owning the same painting that he had. According to a spokesman for McEnroe he was on vacation and also was unable to be reached immediately.

Most of the artworks, which are yet to be valued, are being held in the custody of a bankruptcy court in Poughkeepsie, New York. Several investors have issued civil claims against Salander and his gallery, which filed for bankruptcy and closed in the year 2007.