Art fraud forges ahead: Fraud in the collection of fine art

Art fraud and forgeries often are ignored in the world of white-collar crime. However, this small subset of fraud is growing globally as more unsuspecting novice collectors enter a world unfettered by internal controls. Learn how to detect and prevent fraud in this multibillion-dollar industry.  

Vilas Likhite, a Los Angeles doctor, was said to have owned a multimillion-dollar art collection inherited from an Indian maharajah. His collected works included the names of Brancusi, Lichtenstein, Chagall, Casatt, and others. The pieces he collected were best described as "museum quality." At times, he could be persuaded to sell some of these works to trusted friends for exceptionally low prices. However, a recent sale of a Casatt proved to be his downfall when he sold it to an undercover police detective who specialized in art fraud. All of Likhite's carefully documented works, some presented in a three-ring binder, were fakes.

Also the documents supposedly supporting the authenticity of the art were forged. According to the art fraud detective, the fraudulent art pieces looked like they had been purchased in a dollar store because they were so bad. When the police searched his one-room condo, some of the works still were wet with paint. At the time of his arrest, another buyer filed a complaint that the piece she purchased from him was a forgery (Moore, 2004).