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Violet Scharf*

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Violet Scharf is an intern in the firm's Century City office. 

Fine art was once regarded primarily as a cultural or emotional asset—meant to be displayed, appreciated, and eventually passed down through generations. But as the art market became increasingly sophisticated and intertwined with global finance, this view shifted. Collectors now leverage high-value works as financial instruments, using blue-chip art as collateral to access capital without parting with the underlying asset.[1]Continue Reading Art as Collateral: The Legal Landscape of Art-Backed Lending

As the art market grows in value and complexity, so too do the legal challenges surrounding authenticity. The Knoedler Gallery scandal revolved around the sale of approximately 40 Abstract Expressionist paintings that were discovered to be forgeries.[1] The scandal unfolded when it was revealed that Pei-Shen Qian, a Chinese art forger, had created fake paintings, which were then passed off as works by famous artists like Robert Motherwell, Jackson Pollock, and Mark Rothko, among others. In this scandal Pei-Shen Qian produced fake paintings, attempting to imitate the styles and techniques of other artists. Glafira Rosales, who had a close relationship with Knoedler Gallery president Ann Freedman introduced the forgeries to Freedman and convinced her of their authenticity.[2] As a result, Knoedler Gallery sold the forgeries as genuine, earning millions in profit. When the authenticity of the paintings came into question, collectors filed a wave of lawsuits, alleging fraud, breach of contract, and negligent misrepresentation.[3]Continue Reading (In)Authentic: The Importance of Due Diligence in the Art Market