A once-prominent art dealer was arrested on Thursday on an indictment charging that he stole $88 million from investors, collectors and artists who had consigned paintings and sculpture to his Upper East Side gallery, the authorities said.
The Manhattan district attorney, Robert M. Morgenthau, said the dealer, Lawrence B. Salander, sometimes sold the same painting to more than one buyer. Aides to Mr. Morgenthau said Mr. Salander sold one painting to three people, promising each a 50 percent share.
“Why sell it once when you can sell it three times?” Mr. Morgenthau said at a news conference called to announce a 100-count indictment accusing Mr. Salander of grand larceny, falsifying business records, scheming to defraud investors, forging documents and perjury.
Mr. Morgenthau said the charges covered transactions with 26 victims going back to 1994, among them the tennis star John McEnroe. Mr. Morgenthau said the investigation was continuing, raising the possibility that the extent of the theft could climb. One official with direct knowledge of the investigation said the authorities believed that Mr. Salander’s take actually exceeded $100 million.
… Mr. Morgenthau said Mr. Salander used the money he pocketed “to finance his self-imposed mission to corner the market in Renaissance art” and to support “his extravagant lifestyle,” which included travels in a private jet. Mr. Morgenthau also said Mr. Salander had spent $60,000 on a party for his wife at the Frick Collection, around the corner from the Salander-O’Reilly Galleries on East 71st Street.
The arrest came 17 months after Mr. Salander’s gallery was shut down and 16 months after he filed for bankruptcy. If convicted, he could face up to 25 years in prison on each of 13 counts of first-degree grand larceny and up to 15 years on each of 10 counts of second-degree grand larceny, along with additional time for the other charges…
What a delicious synergy it would be if Salander were Ezra Merkin’s dealer…
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Update: They were neighbors!