[MSN] Judge rules dealers open to prosecution if cash paid and no questions asked. Art Loss Register assists with recovery of stolen paintings

[MSN]

PRESS RELEASE:  Wednesday 27th February 2007

ART LOSS REGISTER ASSISTS WITH RECOVERY OF STOLEN PAINTINGS

JUDGE RULES DEALERS OPEN TO PROSECUTION IF CASH PAID AND NO QUESTIONS ASKED

At the High Court in London, today, two paintings by Indian artist F. N. Souza valued at
£300,000 were awarded to Aziz Kurtha, a well known collector and lawyer, and author of a book
on the artist. Kurtha sued a dealer, Michael Marks, for the return of his stolen pictures. Some
of Kurtha’s collection had disappeared from storage in the 1990s and appeared at Bonhams in
2002 with no satisfactory provenance and after a settlement with the consigners they were
returned to him.

In today’s case, Marks claimed he had bought them from another dealer, Mr Demetriou, one of the
consigners to Bonhams, and Demetriou claimed that he bought them from another dealer, Mr
Martin. This case hinged on whether there was a good faith purchase by Martin before 26th Feb
2001 i.e. within the six year Statute of Limitation period which would give him clear title.
Martin relied on an alleged sale by a Miss Barnarse for £200 in cash for which he had no
contemporary evidence except a note which he dictated to her in April 2006.

Demetriou stated that he paid Martin £15,000 in cash for the two pictures, for which there was
no documentation, and planned to sell them on to Marks for £125,000.  The Judge found that this
sale was bogus and they were probably acting in partnership.  The Judge said that the evidence
of Marks and Demetriou was not satisfactory and that Martin may well have known that the
pictures were stolen.

The missing pictures were registered with the Art Loss Register who undertook an investigation
into the alleged provenance.

In this important judgement for the art trade, Mr Justice Tugendhat stated “A dealer in
valuable works of art who pays in large amounts of cash, keeps no record, and asks no questions
as to provenance ..., exposes himself and those who buy from him, to other very serious risks,
including 
 queries relevant to tax from HMRC. 
 a prosecution under the Proceeds of Crime Act

 (and) a civil recovery order.”

“This case is a classic example of stolen pictures being secreted by those who know they are
stolen and slowly introduced at the bottom end of the market.  Dealers who do not undertake due
diligence are likely to pay for it in damages, which in this case may be £150,000” said Julian
Radcliffe, Chairman of the Art Loss Register.

Attached photographs
Francis Newton Souza, Still Life with Chalice with Host, 1953, 24 inches x 39 inches
Francis Newton Souza, Head of a Portuguese Navigator, 1961, 30 inches x 24 inches

The Art Loss Register (ALR) is the world’s largest private international database of lost and
stolen art, antiques and collectibles that provides recovery and search services to private
individuals, collectors, the art trade, insurers and law enforcement through technology and a
professionally trained staff of art historians.
The ALR was formed in 1991 through a partnership between leading auction houses and art trade
associations, the insurance industry and the International Foundation of Art Research.  The ALR
has been involved in the recovery of over 1,000 works of art worth with an estimated value of
£100,000,000. With over 185,000 items on its database of lost and stolen art and antiques, it
undertakes over 300,000 searches a year.  The ALR is recognised as an integral part of art
recovery and assists museums and the art trade undertake due diligence. The ALR is more than
just a database as its expertise in the field of art crime, inventory management and title
negotiations denote.

For further information contact:
Julian Radcliffe
The Art Loss Register
First Floor
63-66 Hatton Garden
London EC1N 8LE
Tel: +44 (0)20 7841 5780    Fax: +44 (0)20 7841 5781   Email:artloss at artloss.com