Do your clients own stolen art?

Your wealthy client wants to buy art. But he reads the papers and sees stories about recent high-profile theft cases. So, he wonders, how can he protect himself from purchasing stolen goods?

Tell him start by checking free federal databases, including Interpol and the FBI, which keep tallies of what they call “stolen cultural property,” says Bonnie Czegledi, a lawyer with Czegledi Art Law.

The same advice also goes for clients who happen to own galleries or museums.

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Czegledi recalls one case in which a Toronto gallery was robbed and the thief tried to sell the pieces to another gallery the following year. The owner of the second gallery searched Interpol’s database, learned the pieces were hot, and called police.

“There are many things you can do when you’re purchasing art to protect yourself,” she says. “Don’t buy art on impulse. Like other investments, you should research what you’re investing in.”

While you’re on the Internet cruising Interpol, she suggests surfing to get names of reputable dealers—check their backgrounds, learn how long they’ve been in business and if they have good referrals.

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And, when you buy, ask for documentation so you know where the piece is coming from, as well as a bill of sale. She adds it’s risky to pay cash, and advises buyers be suspicious of art sold at very low prices.

If your client gets robbed or burgled, he should file a police report, including a detailed description of the stolen work; register the theft with the police, RCMP, FBI, the Art Loss Register, and Interpol; report the theft to Canadian customs; and publicize it in every way possible, including speaking to the press. These law enforcement agencies will want photographs and copies of paperwork.

There’s also title insurance for a client who wants extra coverage to protect himself. If he unknowingly purchases a piece of hot art and it’s repossessed, this insurance provides him legal title and ensures he’s not left with nothing.

Overall, common sense also goes a long way. If a deal seems too good to be true, it probably is, she says.

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