5/12/2009

A Glimpse Into Salander O'Rilley Gallery Dealings

The Courthouse News Service is reporting that tennis legend John McEnroe is suing Lawrence Salander. The article gives some good insight into the dealings at the Salander O'Rilley Gallery, including customers purchasing partial interest in paintings as well as lending money to the gallery to make purchases. Like Madoff, I wonder how Salander kept straight the amount of deceit and subterfuge with his clients.

The CNS states To complicate things still further, "Instead of marketing and selling Pirate II, Salander Galleries entered into a series of improper transactions, without plaintiffs' knowledge or consent, culminating in the subsequent sale of Pirate II to defendants. At all times, defendants concealed these transactions from plaintiffs."

McEnroe and Bender say Salander made a "sham transaction" and transferred the alleged ownership of Pirate II to "an alleged affiliated entity, The Seven Salander Children Group. ... Thereafter, on Oct. 9, 2006, the Carroll Parties entered into an exchange/buy-back agreement with The Seven Salander Children Group for the transfer of Pirate II in exchange for two paintings of lesser value. As sophisticated and experienced art merchants, the Carroll Parties knew, or should have known, that the net consideration purportedly exchanged with The Seven Salander children Group for Pirate II was far below Pirate II's fair market value. ...

To read the full Courthouse News Service article, click HERE.

1 comment:

Anonymous said...

Give me a break!
Bender and McEnroe were professional art financiers and art dealers.
How could they have been so stupid to have never filed New York State UCC forms?
Contrary to their claim, it was they who "concealed these transaction"- a look at the NY State web-site shows Carroll filed a UCC 9 days after his purchase.
Wake up Todd!