http://www.vheadline.com/readnews.asp?id=9640 The Art Newspaper(
http://www.theartnewspaper.com/ ) reports that a US art broker is awaiting sentence after pleading guilty to
involvement in a money-laundering scheme intended to exchange illegal drug proceeds for art
... two New York art dealers charged in the case have not been scheduled for trial.
Investigators are linking to a case which involves a 1999 a drug transaction with two kilos
of cocaine flown from Caracas to Paris on a private jet owned by Saudi Arabian prince Nayef
Al-Shaalan.
A federal indictment charges Shirley D. Sack (74) and Arnold K. Katzen (63) with conspiring
and attempting to sell two paintings for $4.1 million in cash to an undercover agent posing
as a drug dealer. According to the defendants, the paintings in question are Amedeo
Modigliani's "Jeune femme aux yeux bleus" (valued at around $2.5 million) and a pastel by
Edgar Degas "La Coiffure" (valued at around $1.6 million) seized by US Customs Service and
FBI agents.
US District of Massachusetts Attorney Michael J. Sullivan says "Katzen and Sack indicated to
the undercover agent that they could resell the paintings overseas as part of the
money-laundering scheme." An undercover sting investigation was thereafter conducted by the
US Customs Service and the FBI leading to a guilty plea to money-laundering by Connecticut
art broker Alan M. Stewart in December 2001. The defendants face maximum sentences of 20
years in prison and $250,000 fines.
Sack and Katzen are said to have promoted themselves as fine art dealers "capable of selling
various works of art for in cash" as a way to launder money earned through illegal drug
trafficking. They offered to resell overseas any works of art first sold by them ... Sack
discussed transferring proceeds from resale to an offshore account and explained that the
buyer would see a net loss in funds.