He has been convicted as a “serial scammer” who tricked investors into art by separating them with $ 86 million, but his victims will never forget the charm and charisma of Inigo Philbrick.
The soft-spoken American distributor, with a gallery at an exclusive London address, a Midas touch that brought high profits in art sales and a socialite bride from Made in Chelsea, had in fact run a fraudulent business. This week, he was sentenced to seven years in prison in the United States, with two years of supervised release and an order to “pay a confiscation of $ 86,672,790.”
His was a trade in smoke and mirrors that involved selling a total of more than 100% of a work of art to various investors without their knowledge, using works as collateral for loans without informing their co-owners, and falsify documents to inflate the values of works of art. with a contract listing a stolen identity as a seller, according to the U.S. Department of Justice. A life of crime financed Philbrick’s luxurious life, ranging from private jet travel to the best wines to £ 5,000 a bottle.
When Judge Stein asked him why he committed the crime, Philbrick replied, “For the money, your honor.”
But eventually the law caught up with him. In the fall of 2019, a lender officially notified Philbrick that it was in arrears with a $ 14 million loan, and by November 2019, several investors had filed civil lawsuits. After fleeing to a remote Pacific island, he was finally arrested in 2020, and found to be on his way from paradise to prison. Last November, Damian Williams, the U.S. attorney for the Southern District of New York, announced that Philbrick had pleaded guilty before U.S. District Judge Sidney H Stein to an electronic fraud charge for committing a scheme to scam various people and entities in order to to finance their art business. According to the complaint, “Philbrick fraudulently obtained more than $ 86 million as a result of the plan … Philbrick made material misrepresentations and omissions to art collectors, investors and lenders to access valuable art and obtain sales revenue, financing and loans “.
When Judge Stein asked him why he committed the crime, Philbrick replied, “For money, your honor.” He was certainly sincere then. Prosecutors believe his fraudulent scheme ran between 2016 and 2019 and that contemporary artwork trapped in his complex network includes Jean-Michel Basquiat’s 1982 painting Humidity and his 2012 photorealistic portrait. by the artist Pablo Picasso by Rudolf Stingel.
Among its victims is Kenny Schachter, an American artist, scholar, and writer who lost more than $ 1.5 million to Philbrick. “He misappropriated my funds, my art, as he did with a lot of people,” he says. What makes it even more painful is that they were once friends, close enough to have been on vacation together, and he remembers Philbrick as a “talented art martian” who was “sharp, funny, and amusing. “. He compares him to the most famous Ponzi scammer in the United States, Bernie Madoff, who died in prison after stealing billions of dollars from thousands of victims around the world, describing Philbrick as a “mini Madoff.” , which was shot down “mainly” by “a toxic mixture”. of arrogance and alcohol ”.
Various civil lawsuits are underway to determine the legal title of the works of art that Philbrick allegedly sold in excess or used as collateral for the loans.
Judd Grossman, a New York lawyer, represents several victims, including Satfinance and financial adviser Aleksandar Pesko, who has two separate lawsuits: Basquiat’s Humidity and Stingel’s Portrait of Picasso: “Everyone is arguing right now. , not really against Philbrick. He has nothing. They are litigating against the works of art that have been located. ” El Basquiat and Stingel are both in New York, subject to precautionary measures, that is, they will remain until the respective cases are resolved.
Grossman says: “Philbrick was selling interest without revealing the fact of that transfer and in some cases selling more than 100 percent of the work … not only did he lie about the purchase price, but he eventually stole the work and tried to commit it. as a guarantee of a loan “.
A letter sent to Judge Stein by Philbrick’s attorney, Jeffrey Lichtman, before sentencing this month acknowledges this. He claims that Philbrick’s alcohol and drug use began in school and “intensified as he entered the London art world”, adding that this was “how business is done in London”. art “. Schachter adds: “He’s made mistakes and sabotaged his whole life out of greed in the short term. It’s just stupid.”
In his presentation, Lichtman admits that his client told Pesko that he had bought Basquiat’s work for $ 18.4 million “before selling a 50% stake in Pesko based on its inflated purchase price for $ 9.2 million and also receive a $ 3 million loan from him. ” . “Philbrick sold another 12.5% stake in the work to a third individual, Damien Delahunty. [a London art dealer], for $ 2.75 million, alleging that he had actually bought the work for the inflated price even greater than $ 22 million, lying that he and Delahunty would own 25% of the work, with a third not revealed that he had the remaining 75%. From then on, Philbrick used this and other works as collateral, without disclosing other property interests, to receive a $ 13.5 million loan from Athena Art Finance Corp. “
Grossman describes Philbrick’s fraud as “sophisticated”.
Philbrick’s fraud was exposed in 2019, following rumors of shady business and investors demanding a return on investment or artwork. Faced with multiple demands, he fled to the Pacific island of Vanuatu, where he was detained by U.S. law enforcement. FBI Deputy Director William F Sweeney Jr. then said, “Philbrick allegedly sought out high-dollar art investors, sold pieces he didn’t own, and gambled millions of dollars on other people’s money “The game ended when investors began to wonder where their money was going.”
Philbrick, whose good-looking child has been compared to pop star Justin Timberlake, was born in England 34 years ago. He grew up in Connecticut, the son of a respected former museum director and a Harvard-trained writer and artist, who divorced as a teenager, devastating the family financially and emotionally, according to court documents.
He studied at Goldsmiths, University of London, entering the art world in 2010 as a fellow at the White Cube Gallery in London, where he soon became head of sales in the secondary market. In 2013, he set up his own contemporary art gallery in Mayfair and, after a turnover of about $ 130 million in 2017, opened a branch in Miami, Florida.
[Orange] it’s not really their color. She was wearing a kind of khaki monkey by Victoria Baker-Harber
His business was said to be backed by Jay Jopling, founder of White Cube, who said in a statement: “It hurt and saddened me that Mr. Philbrick, whom I respected and supported Initial career has not only betrayed my life, but confidence, it seems, that of many others. ” Jopling’s spokesman said he had “suffered significant financial losses as a result of Mr Philbrick’s fraud”, and added: “As legal proceedings are still ongoing in relation to these losses, we cannot comment further.”
British artists Gilbert and George even gave the court a character reference, recalling Philbrick as “a very talented, extraordinary, charming, honest and decent young man.”
His relationship with Made in Chelsea star Victoria Baker-Harber led to the birth of his daughter, Gaia-Grace, in November 2020. He even talked about Philbrick in a recent episode of the show, describing as the “kindest person.” and joking that he looked good in his prison uniform. “[Orange] it’s not really their color. He was wearing a kind of khaki monkey. At least she has a neck. “Approached by the Guardian, she declined to comment.
The art world is certainly no stranger to fraud and scandal. Recent cases, including counterfeits sold by the now-defunct now defunct Knoedler Gallery, reflect the greed and excess of a poorly regulated market, which allows buyers and sellers of millions of pounds of art to hide. their identity.
Sharon Flescher, executive director of the International Foundation for Art Research (Ifar), says: “Fortunately, scams like the Inigo Philbrick case don’t happen that often. But when they do, they expose the soft belly of an art world where large sums of money are transferred, often with little transparency.
“This case shows what happens when trust is out of place and people with seemingly good backgrounds turn out to be dishonest. This was a scheme of mass fraud involving millions of dollars, lies, deception, fraudulent documents and exaggeration. the sale of more than 100% of the shares owned by a work of art was hilarious fun at Mel Brooks’ The Producers, it’s not a matter of laughter. “
Grossman believes Philbrick was downcast by “a combination of greed, opportunity, and the desire to be the next big thing in the art world.” “Once he had a taste of this success and the lifestyle of his clients, he had made money but he was not at the level of wealth of his clients, he wanted more.
“He abused his personal and professional relationship with his clients to commit fraud. All of these transactions involved a level of trust and, in these cases, were built on a good track record. I was making money, and by all accounts, there was no reason to believe that these were not legitimate transactions with respect to my clients. During the course of these business relationships, some of these customers developed personal …