Knoedler Supplier Arraigned in Federal Court

The NY Times is reporting that NY art dealer Glafira Rosales  has been arraigned on charges of wire fraud, money laundering, filing false tax returns and failing to report foreign bank accounts. She has pleaded not guilty.

Rosales is the dealer who supposedly sold fake works to Knoedler and Company gallery, including works by Mark Rothko, Jackson Pollock and Willem de Kooning.

The NY Times reports

On Wednesday, federal officials in Manhattan announced that Ms. Rosales had been indicted on seven counts of wire fraud, money laundering, filing false tax returns and failing to report foreign bank accounts. Prosecutors said that from 1994 to 2009 Ms. Rosales sold two prominent Manhattan galleries more than 60 works that she said were by artists like Mark Rothko, Jackson Pollock and Willem de Kooning, but the authorities say were, in fact, forgeries.

According to the indictment, Ms. Rosales laundered the proceeds of those sales by transferring money through foreign bank accounts, then hid the income generated by the scheme by filing false tax returns and failing to inform the United States government of the existence of the foreign accounts.

The government says Ms. Rosales received more than $33 million for the works and failed to declare at least $12.5 million of it as income.

Source: The NY Times