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US Seeks Forfeiture of Artworks and Diamonds from Indicted Dealer with Alleged Hezbollah Connections

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Federal prosecutors have filed documents seeking the forfeiture of additional artworks, more than 30 diamonds, and $2 million in the ongoing case against art collector Nazem Said Ahmad.

US Attorney for the Eastern District of New York Breon Pace and US Attorney Claire S. Kedeshian filed a three-page Bill of Particulars for the forfeiture of a JP Morgan Chase bank account with a balance of more than $2 million, two artworks by Dan McCarthy, three paintings and two sculptures by Alex Brewer (also known as Hense), four sculptures by Mark Whalen, a sculpture by Joankim Ojanen, a 2.4-carat “green diamond cushion modified brilliant cut ring,” and 34 other diamonds.

The items, which would only be subject to forfeiture if Said Ahmad were convicted, were all owned by companies mentioned in the nine-count indictment unsealed earlier this year in the United States District Court for the Eastern District of New York. The document also includes various allegations against Said Ahmad, accusing him of conspiring to defraud the United States and other governments, evading customs laws, and money laundering for the benefit of Lebanon-based terrorist group Hezbollah.

Ahmad has been sanctioned by the US government since 2019 for his role as a major financial donor to Hezbollah through money laundering activities, as well as for personally providing funds to the organization’s secretary-general. He was barred from conducting business—such as collecting and selling “high-value art,” real estate, and diamonds—with US entities and persons.

The indictment further alleged that Ahmad and his associates obtained artwork worth more than $1.2 million from the US after he was sanctioned in 2019, but noted that amount did not account for the tax evasion from foreign governments. By comparison, the indictment said the total weight and value of the diamonds, which had allegedly passed through Ahmad’s businesses after the sanctions had been imposed in 2019, were graded at approximately 1,546 carats and were worth more than $91 million.

Prior to the Bill of Particulars filing on August 16, the US government had already already sought the forfeiture of more than 450 diamonds and more than 100 pieces of artwork.

The indictment did not identify the names of artists and galleries involved, only referring to them by sales amounts and location, such as “Chicago Art Gallery-1.” However, three of the works in the indictment had been posted to Ahmad’s Instagram account, where he frequently published images of artists, galleries, and exhibitions to his 172,000 followers. Ahmad previously identified those paintings as works by Nicasio Fernandez and Luke Agada. The Instagram account is no longer online.

Using Google reverse image search on artworks attached to the indictment, several of the works appear to be artists David Salle, Terron Cooper Sorrells, Stickmonger, and UFO907; per the indictment, these pieces were paid for or acquired through other names, entities, or partial payments to obscure they were connected to Ahmad.

 

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Calvin Lucyshyn: Vancouver Island Art Dealer Faces Fraud Charges After Police Seize Millions in Artwork

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In a case that has sent shockwaves through the Vancouver Island art community, a local art dealer has been charged with one count of fraud over $5,000. Calvin Lucyshyn, the former operator of the now-closed Winchester Galleries in Oak Bay, faces the charge after police seized hundreds of artworks, valued in the tens of millions of dollars, from various storage sites in the Greater Victoria area.

Alleged Fraud Scheme

Police allege that Lucyshyn had been taking valuable art from members of the public under the guise of appraising or consigning the pieces for sale, only to cut off all communication with the owners. This investigation began in April 2022, when police received a complaint from an individual who had provided four paintings to Lucyshyn, including three works by renowned British Columbia artist Emily Carr, and had not received any updates on their sale.

Further investigation by the Saanich Police Department revealed that this was not an isolated incident. Detectives found other alleged victims who had similar experiences with Winchester Galleries, leading police to execute search warrants at three separate storage locations across Greater Victoria.

Massive Seizure of Artworks

In what has become one of the largest art fraud investigations in recent Canadian history, authorities seized approximately 1,100 pieces of art, including more than 600 pieces from a storage site in Saanich, over 300 in Langford, and more than 100 in Oak Bay. Some of the more valuable pieces, according to police, were estimated to be worth $85,000 each.

Lucyshyn was arrested on April 21, 2022, but was later released from custody. In May 2024, a fraud charge was formally laid against him.

Artwork Returned, but Some Remain Unclaimed

In a statement released on Monday, the Saanich Police Department confirmed that 1,050 of the seized artworks have been returned to their rightful owners. However, several pieces remain unclaimed, and police continue their efforts to track down the owners of these works.

Court Proceedings Ongoing

The criminal charge against Lucyshyn has not yet been tested in court, and he has publicly stated his intention to defend himself against any pending allegations. His next court appearance is scheduled for September 10, 2024.

Impact on the Local Art Community

The news of Lucyshyn’s alleged fraud has deeply affected Vancouver Island’s art community, particularly collectors, galleries, and artists who may have been impacted by the gallery’s operations. With high-value pieces from artists like Emily Carr involved, the case underscores the vulnerabilities that can exist in art transactions.

For many art collectors, the investigation has raised concerns about the potential for fraud in the art world, particularly when it comes to dealing with private galleries and dealers. The seizure of such a vast collection of artworks has also led to questions about the management and oversight of valuable art pieces, as well as the importance of transparency and trust in the industry.

As the case continues to unfold in court, it will likely serve as a cautionary tale for collectors and galleries alike, highlighting the need for due diligence in the sale and appraisal of high-value artworks.

While much of the seized artwork has been returned, the full scale of the alleged fraud is still being unraveled. Lucyshyn’s upcoming court appearances will be closely watched, not only by the legal community but also by the wider art world, as it navigates the fallout from one of Canada’s most significant art fraud cases in recent memory.

Art collectors and individuals who believe they may have been affected by this case are encouraged to contact the Saanich Police Department to inquire about any unclaimed pieces. Additionally, the case serves as a reminder for anyone involved in high-value art transactions to work with reputable dealers and to keep thorough documentation of all transactions.

As with any investment, whether in art or other ventures, it is crucial to be cautious and informed. Art fraud can devastate personal collections and finances, but by taking steps to verify authenticity, provenance, and the reputation of dealers, collectors can help safeguard their valuable pieces.

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Ukrainian sells art in Essex while stuck in a warzone – BBC.com

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Ukrainian sells art in Essex while stuck in a warzone  BBC.com

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Somerset House Fire: Courtauld Gallery Reopens, Rest of Landmark Closed

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The Courtauld Gallery at Somerset House has reopened its doors to the public after a fire swept through the historic building in central London. While the gallery has resumed operations, the rest of the iconic site remains closed “until further notice.”

On Saturday, approximately 125 firefighters were called to the scene to battle the blaze, which sent smoke billowing across the city. Fortunately, the fire occurred in a part of the building not housing valuable artworks, and no injuries were reported. Authorities are still investigating the cause of the fire.

Despite the disruption, art lovers queued outside the gallery before it reopened at 10:00 BST on Sunday. One visitor expressed his relief, saying, “I was sad to see the fire, but I’m relieved the art is safe.”

The Clark family, visiting London from Washington state, USA, had a unique perspective on the incident. While sightseeing on the London Eye, they watched as firefighters tackled the flames. Paul Clark, accompanied by his wife Jiorgia and their four children, shared their concern for the safety of the artwork inside Somerset House. “It was sad to see,” Mr. Clark told the BBC. As a fan of Vincent Van Gogh, he was particularly relieved to learn that the painter’s famous Self-Portrait with Bandaged Ear had not been affected by the fire.

Blaze in the West Wing

The fire broke out around midday on Saturday in the west wing of Somerset House, a section of the building primarily used for offices and storage. Jonathan Reekie, director of Somerset House Trust, assured the public that “no valuable artefacts or artworks” were located in that part of the building. By Sunday, fire engines were still stationed outside as investigations into the fire’s origin continued.

About Somerset House

Located on the Strand in central London, Somerset House is a prominent arts venue with a rich history dating back to the Georgian era. Built on the site of a former Tudor palace, the complex is known for its iconic courtyard and is home to the Courtauld Gallery. The gallery houses a prestigious collection from the Samuel Courtauld Trust, showcasing masterpieces from the Middle Ages to the 20th century. Among the notable works are pieces by impressionist legends such as Edouard Manet, Claude Monet, Paul Cézanne, and Vincent Van Gogh.

Somerset House regularly hosts cultural exhibitions and public events, including its popular winter ice skating sessions in the courtyard. However, for now, the venue remains partially closed as authorities ensure the safety of the site following the fire.

Art lovers and the Somerset House community can take solace in knowing that the invaluable collection remains unharmed, and the Courtauld Gallery continues to welcome visitors, offering a reprieve amid the disruption.

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