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Art dealer George Bergès detailed terms of Hunter Biden deals to House committees

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WASHINGTON — Hunter Biden insisted on knowing the identities of who was buying his art when he began selling his work, an “unusual” directive that was later retracted, his gallery director told House investigators, according to a transcript of the interview reviewed by NBC News.

Hunter Biden was the only artist represented by George Bergès to make that demand, Bergès testified to the House Oversight and Judiciary committees before the stipulation was rolled back in September 2021 after months of public scrutiny. His testimony came as part of House Republicans’ inquiry into President Joe Biden.

Bergès said there was never any conversation with his buyers about political favors from the president or the White House.

The timeline for the shift raises questions about the Biden White House’s statements about ethics safeguards surrounding the sales, which had attracted the attention of art world insiders and good governance experts. It also counters statements by the White House that Hunter Biden does not know the identities of his collectors.

Bergès said he was “surprised” by a report in the summer of 2021 claiming that “White House officials [had] helped craft an agreement” that would create a firewall between Hunter Biden and his buyers, having never spoken to the White House.

Georges Berges
Georges Bergès at the Los Angeles Beverly Art Icon Awards on Sept. 22.Jordan Strauss / Invision / AP file

Joe Biden’s press secretary at the time, Jen Psaki, described a “system” that would allow Hunter Biden to sell his work “within reasonable safeguards,” telling reporters, “He will not know, we will not know who purchases his art.” Psaki, now the host of “Inside with Jen Psaki” on MSNBC, later clarified that it was not the White House itself that helped create the arrangement.

The White House did not immediately respond to a request for comment.

The interview with Bergès raises new questions about Hunter Biden’s art sales as a potential vehicle for him to pay off debts owed to Kevin Morris, a Hollywood attorney. NBC News reported that Morris began advising Biden in 2020 before he arranged to pay $2 million in outstanding tax obligations to the IRS on his behalf.

Describing the deal with Morris, Bergès said Biden would have had to discuss the terms of the sale with his friend before the deal was made. “I think they had an arrangement. … He had to have known that he was the buyer, because normally the gallery would then write a check for the artist commission, but I didn’t,” Bergès told investigators.

After the agreement was revised, Bergès said, nothing would have prevented buyers from informing Biden that they had purchased pieces.

Bergès said that he no longer represents Biden but that they remain close and talk several times a week, with Bergès at one point describing him as “one of my best friends.”

Morris, who purchased $875,000 worth of Biden’s art through a business entity in January 2023, paid the gallery director a 40% commission while planning to resolve the balance with Biden directly, Bergès testified.

He described Morris as Biden’s largest collector. 

Bergès told Congress that he did not know whether the gallery had provided Biden with the tax documentation to reflect the $525,000 payment from Morris. He also recalled seeing a piece of art in Morris’ home that the gallery director had not sold, indicating that Morris had obtained it elsewhere, perhaps from Biden directly.

In a letter last week to Oversight Committee Chair James Comer, R-Ky., Morris’ attorney said Morris had not decided how to pay for Biden’s artwork. He is still considering either a direct payment or a write-down of the loans, and that will depend on his tax advisers’ advice, according to a copy obtained by NBC News.

Biden last week pleaded not guilty to nine tax-related charges, including three felony counts, related to his business dealings from 2016 to 2020.

Bergès said another buyer known to Biden was Elizabeth Hirsh Naftali, a prominent Democratic donor who received a White House appointment last year. She is the great aunt of 4-year-old Abigail Eden, the first American hostage freed by Hamas after Oct. 7 in a prisoner exchange.

Though Bergès was introduced to Hirsh Naftali and began working to sell Biden’s artwork to her in 2019, it was not until the weeks after Joe Biden was inaugurated that she made her first purchase in February 2021. In December 2022, Hirsh Naftali purchased a second piece of Hunter Biden’s artwork after having attended one of his art exhibitions, buying $94,000 worth of his art.

In a letter to Congress last year, Hirsh Naftali’s attorney said that she did “nothing wrong,” that her White House appointment to the U.S. Commission for the Preservation of America’s Heritage Abroad was not connected to her purchase of the artwork and that the appointment came at the recommendation of then-House Speaker Nancy Pelosi, D-Calif.

Bergès said Biden learned of her identity through news reports.

 

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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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