Fine Art Registry® Making a Difference in an Unregulated Art Industry

Fine Art Registry exists to bring order to an unregulated art industry. This means that part of what we do is to expose art crime and art fraud, a burgeoning multi-billion dollar illicit industry and growing by the day. Arguably, art crime and art fraud is the highest grossing crime behind illegal drugs and illegal arms trafficking. Since its founding, Fine Art Registry has successfully advocated for hundreds of artists and collectors and has commissioned a variety of high profile art crime investigations such that have been reported in many publications and other media outlets worldwide, including the New York Times, The Independent, and most recently, a feature article in The New Yorker magazine.

As a result of our continuing investigations into all sorts of art crime and art fraud, including forgery, fraud, theft, smuggling and vandalism, we have developed an amazing network of art professionals that assist us in all areas of our investigations from forensic laboratory work and art appraisals to art authentication investigation and related services. Over the years we have also provided advocacy services and other assistance as well as legal support services to artists, collectors, galleries, law enforcement, law firms, and others. Our goal is to educate and to help prevent art crime and art fraud before it occurs - thus fulfilling our mission. To this end, Fine Art Registry only works with seasoned professionals that have unimpeachable skill, knowledge, experience and references in the industry.

It is critically important to do all that we can as a community to fight art crime and art fraud. And so, I take this opportunity to call on and encourage all art professionals, artists, collectors, lawyers, law enforcement, and any others with an interest in deterring art crime and art fraud, to take an active role in preventing it. Perhaps it is too ambitious or simplistic to believe that such a gargantuan task can be accomplished. Call me an eternal optimist. I believe it can be done, if those that really care step forward to help make a difference.

Eleanor Fink, former Director of the Getty’s Information Institute, made a difference. In 1996, well before the Internet was as ubiquitous as it is today, she was the first to initiate a global effort to bring about a solution to art crime and art fraud by developing what is known today as "Object ID" - a core standard for the identification of art and cultural objects. The entire Fine Art Registry U.S. Patented system is based on the Object ID worldwide standard. Fine Art Registry recognizes Eleanor Fink’s enormous contribution to the deterrence of art crime and art theft by developing this standard in which 18 countries around the world participated and which included property and casualty insurers, property appraisers, law enforcement, antique and antiquity dealers, art galleries, museums and many others. All agreed that this simple standard of identifying art objects become the global standard. A few years back, I received a phone call from Eleanor Fink. She called to thank me for forwarding her system and for taking it to the next level by building and developing the Fine Art Registry technology and the database around Object ID. It is people like Eleanor Fink and others that care enough about the art industry to change it for the better. I encourage others to join us in our fight to make the art industry a better, safer, place to do business.

In an effort to help educate artists, collectors, gallery owners and others, Fine Art Registry has started a new video series titled, Let's Keep it Real. We will also continue to publish educational articles, tips and other relevant educational material that will help assist those navigating the unregulated art market so they can make informed decisions and wise choices when dealing in or navigating about the art industry. Some of the topics we will cover, for example are:

• Buying
• Selling
• Consigning
• Commissions
• Prints and Sculpture Multiples
• Expert Opinions
• Auctions [including cruise ship art auctions]
• Artists and Dealers Relationships
• Artists Rights
• Taxes and Estate Planning (donations and write offs)

Lately, I have been receiving a great many phone calls regarding art auction events on cruise ships and specifically art auctions conducted in the form of so-called "VIP auctions" which are usually all-expense paid events where the art vendor expects the VIP attendee to buy artwork - and as much as possible in one weekend - much like Las Vegas expects you to gamble your wallet clean in exchange for free drinks, inexpensive food and low room rates. I have recently recorded a series on "VIP" auctions that you won't want to miss.

Based on the phone calls and emails we have received over the last four years or so, it has become abundantly clear that there are scores and scores of people that don't know the first thing about purchasing a work of art and especially those consumers that get caught up in the sales of artwork on cruise ships or at charity auctions. It is not to say that purchasing art is rocket science. It's not. But if you are planning to spend anymore than $1000, then you should know what you are getting yourself into. There is a safe way to go about doing so. The first rule of thumb is to do your research BEFORE you buy, just as you would before buying a camera, a flat screen television, or a car. Art purchases should be given the same careful consideration as that of any other major purchase you will make. We can't all be experts at everything and art is one of those esoteric things that many people don't seem to know much about. Couple the lack of knowledge with the fact that the art industry is wholly unregulated and you've got yourself a recipe for potential disaster.

Before considering purchasing artwork at anytime, have a budget in mind that you can afford and stick to it, especially if buying from a gallery or at auction. Do NOT consider the representations of an art salesman, an art gallery director, an art auctioneer or any other sales representative as anything but sales talk, puffery, and chatter. There is little chance that you will ever be able to rely on verbal representations after the sale. Do NOT buy art as an investment unless you know exactly what you are doing and that what is being represented as "investment" grade art can be authenticated, verified, and/or evaluated by a third-party expert prior to sale or unless you have a full written guarantee by the gallery or the auction house that you can return the piece for a FULL refund for any reason and especially if you find that the piece was not as represented.

One of the Fine Art Registry respected professionals we call on from time to time to help our members and art buyers is Roy Saper of Saper Galleries in East Lansing Michigan. Mr. Saper and his gallery have won awards for excellence. Mr. Saper served as an expert witness for Fine Art Registry and he is a respected colleague. As an art appraiser and a gallery owner, Roy is familiar with the common mistakes made by those that are new to collecting. I have posted below a recent submission from Roy Saper on what he believes is important to consider when buying art. It is not meant to be comprehensive - but is a general guideline to follow.

If you are an art professional and would like to contribute to our mission to help bring order to the world of art, please do not hesitate to contact us.

— by Theresa Franks  |  August 26, 2010

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