Sotheby’s auction house is under investigation in New York for allegedly distributing false resale certificates to around a dozen clients, allowing them to pose as art dealers and avoid paying tax on revenue from their sales. The scheme is related to a lawsuit in which a Sotheby’s client purchased $27 million in art for his personal collection in transactions that avoided tax. Initially, it seemed this was an isolated incident, but further investigation revealed multiple fraudulent resale certificates, indicating that staff at Sotheby’s had “willfully turned a blind eye to the fraudulent distribution of resale certificates.” Sotheby’s argues it shouldn’t be held responsible for the actions of low-level employees. (www.artnews.com/art-news/news/sothebys-tax-fraud-investigation-expands-1234637480/)
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