[MSN] New Zealand. Art scammer back in court

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Art scammer back in court
By EMILY WATT - The Dominion Post | Tuesday, 20 February 2007

An art dealer owed almost $100,000 is fighting for his money after discovering the man who duped him was a convicted fraudster who stole $1.9 million from the government.

Steven McKelvey was ordered to pay $93,000 to Palmerston North dealer Tony Martin in 2002 after McKelvey duped him into exhibiting paintings he claimed were by French master Paul Gauguin.

However, McKelvey declared himself bankrupt and has yet to pay the money.

Mr Martin asked Palmerston North District Court yesterday to examine McKelvey's finances after discovering he never repaid nearly $1 million stolen from the government years earlier.

McKelvey was convicted of 425 fraud charges in December 1989 and sentenced to 4½ years' prison for the theft of $1.9 million while working for the former Department of Social Welfare. He was also declared bankrupt.

Though McKelvey paid some money back, Lianne Dalziel - commerce minister at the time - confirmed some of the debt was written off.

Mr Martin says $930,000 was never repaid, suggesting McKelvey still had the resources to pay off the Gauguin debt.

Mr Martin has asked the court to examine McKelvey's finances.

McKelvey would not comment on the case, which has been adjourned till next month. "I'm sorry it's still carrying on," he said.

Mr Martin said McKelvey contacted him in 1998 with paintings, drawings and a carving that he said were by Gauguin.

He provided old letters and affidavits from family members - all forged - to claim Gauguin had given the works to his great-grandfather when they met in the Pacific.

Mr Martin uncovered the scam after tests carried out by documents experts revealed a watermark on the paper of one of the paintings was stamped 1932 – decades after Gauguin's death. 

http://www.stuff.co.nz/