Dmity Rybolovlev has launched a lawsuit in Monaco against Yves Bouvier over the size of the commissions that Bouvier charged him on the sale of some paintings. Bouvier, the Swiss businessman, owns the shipping and storage company Natural Le Coultre and is building a series of Free Ports which are gaining in popularity for the duty free storage of art. He is best known in Russia for owning the now defunct Fine Art Fair in Moscow that was formerly held in the Manege in Moscow. Rybolovlev owns the Russian potash producer Urakali and Monaco AS Football Club. He is ranked by Forbes as the 13th richest man in Russia with a fortune of of US$9.1bn and has been on a recent buying spree collecting landmark properties in New York, Gstaad and Monaco as well as amassing a large art collection.

Dmitri Rybolovlev

The dispute centres over some artworks that were brokered to Rybolovlev by Bouvier. The artworks included works by Leonardo, Rothko, Picasso and Klimt. It appears from the court documenents that Bouvier invoiced Rybolovlev separately for his commission and the principal, which was supposed to go to the owner. Rybolovlev, according to his side of the story, later found out that Bouvier had also taken a significant sum from the amounts that Rybolovlev believed were going to the owner. In the case of Leonardo’s ‘Salvator Mundi,’ according to the complaint, Rybolovlev acquired it in May 2013, through Bouvier, for US$127.5m and paid a separate invoice to Bouvier for a commission of US$1.275m. Then Rybolovlev saw in the New York Times that the Leonardo had sold for US$75m – US$80m which leaves a discrepancy of some US$50m or so. Add that up with the other discrepancies, then that might explain why Rybolovlev decided to take action.

Commissions are always a sensitive matter in the art world and there are many different ways of doing it. Some collectors don’t worry about it and are only interested in the amount they have to pay. As Nathan Rothschild said, “Always leave something in it for the other guy.” They take the view that if they are generous they tend to see the next artwork coming onto the market… first. Others prefer absolute transparency. Without knowing what was agreed in advance between Bouvier and Rybolovlev it would be premature to make any judgement. However, it is unfortunate that another high profile case of alledged fraud is about to be dragged through the courts at at time when the art world is coming under increasing scrutiny for tighter regulation.

The Leonardo under discussion, the ‘Salvator Mundi,’ is a recent re-discovery and seems a curious picture to spend such an enormous price on as its attribution is disputed.

Leonardo’s ‘Salvator Mundi’ now subject to a lawsuit over disputed commissions

This painting, which is in bad condition, was apparently once owned by Charles I. It re-appeared in 1900 and was acquired by the English Collector, Francis Cook. Cook’s descendants sold it at auction in 1958 for English pounds 45. It then appeared at auction where it was acquired by a consortium of dealers including the Old Master specialist Robert Simon. It was restored with the overpaint removed and placed in the exhibition, ‘Leonardo da Vinci: Painter at the Court of Milan’ at the National Gallery London from 9th November to 5th february 2012. The painting had enough scholars supporting it to be included in the show but opinion on the full Leonardo attribution is divided. It is known there was a composition of this work by Leonardo, because there are existing copies of it, but Leonardo had a school of followers who painted in his style and there is always a danger with a painting like this that the original really is lost or that another better version may reappear in the future. The consortium of dealers who owned the painting prior to Rybolovlev said they acquired it at auction in the US. Two paintings of this subject have passed through US auctions in the last 20 years and the this painting is probably one of them. The most similar is the one illustrated below which was sold at auction at Sotheby’s New York, Friday 28th 1999, for US$332,500 against an estimate of 80,000 – 120,000.

A version of the Leonardo image which sold at auction in the US in 1999 for over US$300,000 which may be the same painting pre-restoration.

If this is the same picture, then it has been on an amazing journey both it terms of how it has changed in looks and how its value has gone from pounds 45 in 1958 to US$127m in 2013. It would have managed this extraordinary transformation in terms of appearance, attribution and value without a hitch (and very skilful guidance) if it wasnt for the slightly puzzling issue of an alledged US$50m of missing commission. However, if this lawsuit really progresses through the courts then all the details are no doubt going to come spilling out.

Much has been made recently about a Constable of Salisbury Cathedral that slipped through a small auction as a follower of Constable where it made US$5,200. After it was re-attributed to Constable himself it sold for US$5.2m. However, that story would appear to be small change compared to this one.

The subject is being extensively covered by the newspaper Le Temps in Geneva. Below follows their most recent article with a loose translation to English below that :-

Modigliani, Picasso, de Vinci: les chefs-d’œuvre au cœur de l’affaire Yves Bouvier, Le Temps, Geneve, Vendredi 06 Mars 2015, Alexis Favre

“Une collection exceptionnelle, des transactions à neuf chiffres, un préjudice supposé de plusieurs dizaines de millions de dollars. Tout est hors norme dans «l’affaire Bouvier – Rybolovlev». A commencer par le montant de la caution que la justice monégasque exige de l’entrepreneur genevois, mis en examen samedi pour «escroqueries» et «complicité de blanchiment».

Le juge d’instruction a renoncé à la détention provisoire pour le roi des ports francs. Mais, sous contrôle judiciaire, Yves Bouvier paie cher sa liberté: 10 millions d’euros, échelonnés sur deux mois: 2,5 millions à verser avant le 9 mars, 2,5 millions au 31 mars et 5 millions au 30 avril. Le patron de Natural Le Coultre a beau figurer, dixit Bilan, dans le palmarès des 300 plus grosses fortunes suisses, «quand on est très peu liquide comme lui, sortir ces millions, c’est compliqué», résume un proche du dossier.

Hors norme lui aussi, le multimilliardaire russe Dmitri Rybolovlev en est persuadé: Yves Bouvier et sa complice, une amie commune suisse, résidente monégasque et russophone, l’ont escroqué en lui surfacturant des tableaux de maître alors que le Genevois agissait comme intermédiaire. Ou plutôt: ils auraient escroqué les deux sociétés détentrices de sa collection – évaluée à 2 milliards de dollars, selon nos informations –, Xitrans Finance Ltd et Accent Delight Ltd, sises à Tortola, îles Vierges britanniques. Sociétés qui seraient détenues à leur tour par un trust chypriote, dont les bénéficiaires sont les deux filles de Dmitri Rybolovlev.

Depuis que Dmitri Rybolovlev et son ex-femme Elena se déchirent, chacune des deux filles a choisi son camp. La cadette celui de sa mère et Ekaterina, l’aînée, celui de son père, chez qui elle est domiciliée à Monaco. C’est cette dernière qui aurait donné mandat à l’avocate genevoise Tetiana Bersheda, conseil de Dmitri Rybolovlev, d’agir contre Yves Bouvier.

Fait inhabituel, la dénonciation pénale déposée le 9 janvier – que Le Temps a pu consulter – est signée par Me Bersheda. Une plainte pour «faux en écriture» et «escroquerie», qui résume par le menu ce que le clan reproche à Yves Bouvier.

Selon ce document, c’est lui qui conduisait les négociations avec les vendeurs. Hormis deux transactions, aucun contrat de vente n’était rédigé. Mais Yves Bouvier établissait des factures. Une première pour le prix de vente, payable à une société hongkongaise, MEI Invest Limited, détentrice d’un compte à la Compagnie Bancaire Helvétique, à Genève. Une seconde facture pour la commission d’Yves Bouvier: 2% du prix de vente, payable sur son compte dans la même banque dans un premier temps, puis sur un compte ouvert chez HSBC Hong Kong.

A en croire les plaignants, Yves Bouvier et Dmitri Rybolovlev avaient d’excellentes relations. Au point que le premier était un habitué des anniversaires du second, organisés à Hawaï ou à New York.

«Il s’est servi copieusement»

A propos d’une toile de Toulouse-Lautrec, Au lit: Le Baiser (1892), Yves Bouvier écrit à Mikhaïl Sazonov, l’homme de confiance de l’oligarque: «J’avais fait informer DR que j’avais obtenu après négociation un super et dernier prix de 14 millions d’euros, parce que le vendeur avait une opportunité pour investir.» Au sujet d’une œuvre de Magritte, Le Domaine d’Arnheim (1938), il dit devoir «agir dans la plus grande discrétion pour éviter d’attirer l’attention sur ce tableau», au risque «de le perdre pour une vente aux enchères».

Autre exemple, le N° 6 – Violet, Green and Red, de Rothko (1951) est en partie troqué, le vendeur reprenant une Tête de Modigliani pour 60 millions de dollars. La plainte mentionne encore les acquisitions de Wasserschlangen, de Klimt, ou de Mousquetaire à la pipe, de Picasso.

Mais c’est en détaillant l’acquisition de deux chefs-d’œuvre que les plaignants motivent leur accusation: le Nu au coussin bleu de Modigliani et le Salvator Mundi récemment attribué à Léonard de Vinci. Selon la plainte, Dmitri Rybolovlev acquiert celui-ci en mai 2013 par le biais d’Yves Bouvier pour 127,5 millions de dollars. Et lui verse une commission de 1,275 million. Problème, précise la plainte, le Russe découvre dans un article du New York Times que le vendeur n’aurait, lui, touché que «75 à 80 millions de dollars». Le Genevois aurait donc encaissé un profit de quelque 50 millions de dollars en plus de sa commission, à l’insu de son client.

Autre mauvaise surprise: lors d’un dîner, le 31 décembre dernier à New York, Dmitri Rybolovlev rencontre le «conseiller en art Sandy Heller». Lequel lui révèle que le collectionneur Steven Cohen, pour qui il a travaillé, a touché 93,5 millions de dollars pour la vente du Nu au coussin bleu . Or c’est encore un tableau acheté par la galaxie Rybolovlev via Yves Bouvier. Et les factures, annexées à la plainte, indiquent un prix de vente de 118 millions, avec 2,36 millions pour les honoraires d’Yves Bouvier. Pour le clan russe, l’affaire est entendue: au-delà de ses commissions, Yves Bouvier «s’est servi très copieusement sur le prix de vente». La plainte est déposée neuf jours après le dîner new-yorkais.”

In English

“An exceptional collection of nine-digit transactions, a supposed injury of tens of millions of dollars. Everything is extraordinary in “Bouvier – Rybolovlev.” Starting with the amount of security that Monegasque justice requires the contractor Geneva, set for Saturday Review “scams” and “complicity in money laundering.”

The judge gave up custody for the king of the free ports. But under judicial review, Yves Bouvier pays dearly for his freedom: € 10 million over two month: 2.5 million to pay before March 9, 2.5 million at March 31, and 5 million to 30 April. The boss of Natural Le Coultre a beautiful figure, says Bilan, among the top 300 largest Swiss fortunes, “when one is not very liquid like him get these millions, it’s complicated,” said one close to the case.

Extraordinary too, the Russian billionaire Dmitry Rybolovlev is convinced Yves Bouvier and her accomplice, a municipality friend, Monaco resident and Russian-speaking, have defrauded him by overcharging master paintings while Genevois acted as intermediary. Or rather, they would have defrauded the two companies holding its collection – valued at $ 2 billion, according to our information – Xitrans Finance Ltd and Accent Delight Ltd, allowances lying in Tortola, British Virgin Islands. Companies would be held in turn by a Cypriot trust, whose beneficiaries are the two daughters of Dmitry Rybolovlev.

Since Dmitry Rybolovlev and his ex-wife Elena tear, each of the girls chose sides. The youngest of her mother and Ekaterina, the eldest, that of his father, with whom she is domiciled in Monaco. It is the latter which would have mandated the Geneva lawyer Tetiana Bersheda, consulting Dmitry Rybolovlev, act against Yves Bouvier.

Unusually, the criminal complaint filed Jan. 9 – The Time that could see – is signed by me Bersheda. A complaint for “forgery” and “fraud”, which summarizes the menu that clan accuses Yves Bouvier.

According to this, it was he who led the negotiations with the vendors. Apart from two transactions, no sales contract was drafted. But Yves Bouvier established invoices. A first for the sale price, payable at a Hong Kong company, MEI Invest Limited, holds an account in the Swiss Banking Company in Geneva. A second invoice for the commission of Yves Bouvier: 2% of the sale price, payable on his account in the same bank at first, and then to an account at HSBC in Hong Kong.

To believe the complainants, Yves Bouvier and Dmitry Rybolovlev had excellent relations. To the point that the first was a regular anniversaries of the second, held in Hawaii or New York.

“He used copiously”

About a painting by Toulouse-Lautrec, In Bed: The Kiss (1892), Yves Bouvier wrote to Mikhail Sazonov, the prisoners of oligarch: “I had informed DR that I had obtained after Negotiating a great and final price of 14 million, because the seller had an opportunity to invest. “About a work of Magritte, The Domain of Arnheim (1938), he said must” act in the most discretion to avoid attracting attention to the table, “the risk” of losing to an auction. ”

Another example is the N ° 6 – Purple, Green and Red, Rothko (1951) is swapped part, the seller taking a Modigliani head for $ 60 million. The complaint also mentions acquisitions Wasserschlangen, Klimt, or Musketeer with pipe, Picasso.

But in detailing the acquisition of two masterpieces that complainants justify their accusation Nu blue cushion Modigliani and Salvator Mundi recently attributed to Leonardo da Vinci. According to the complaint, Dmitry Rybolovlev acquired it in May 2013 through Yves Bouvier to $ 127.5 million. And receives a commission of 1.275 million. Problem, says the complaint, the Russian revealed in an article in the New York Times that the seller would, he touched only with “75 to 80 million dollars.” The Geneva would have cashed a profit of some $ 50 million in addition to his commission, without the knowledge of his client.

Another bad surprise at a dinner on December 31 in New York, Dmitry Rybolovlev meets the “Advisor Sandy Heller art.” Which reveals that the collector Steven Cohen, for whom he worked, reached $ 93.5 million for the sale of Nu blue cushion. Now it’s even a table Rybolovlev bought by the galaxy via Yves Bouvier. And bills, annexed to the complaint, indicate a sale price of 118 million, with 2.36 million for fees Yves Bouvier. For the Russian clan, the case is heard: Beyond its committees, Yves Bouvier “was used very copiously on the selling price.” The complaint is filed nine days after the New York dinner.”

http://www.letemps.ch/Page/Uuid/7256b9ba-c37d-11e4-a445-d520cd1a7313/Modigliani_Picasso_de_Vinci_les_chefs-duvre_au_cur_de_laffaire_Yves_Bouvier