Crime & Safety

Three People Indicted in Federal Art Fraud Investigation Involving Two Northbrook Defendants

Three more individuals were charged in an investigation that began in March 2008.

Three people were indicted Wednesday on federal fraud charges in an international investigation of counterfeit artwork that also involves two Northbrook defendants who were previously charged, according to the U.S. Attorney’s Office.

Alan Kass, owner, operator and president of the Kass/Meridian Gallery in Chicago, was charged with 13 counts of mail and wire fraud. Law enforcement officials allege that the dealer sold hundreds of counterfeit or unauthorized works by Salvador Dali, Pablo Picasso, Marc Chagall and Andy Warhol, among other artists. Along with Kass, gallery employee Sawyer K. Cade and alleged distributor John Panos were also charged Wednesday.

The federal investigation began in March 2008, when seven defendants were charged with fraudulently producing and/or selling counterfeit art prints and reaping approximately $5 million in illegal proceeds. A Northbrook dealer, Michael Zabrin, was one of the defendants charged in 2008 and allegedly provided fake works to Kass, among others. According to the U.S. Attorney’s Office, Zabrin allegedly sold fake prints online, mostly through eBay, via two businesses of which he was principal, Fineartmasters and Zfineartmasters. He pled guilty to six counts of fraud, according to law enforcement officials, and is awaiting sentencing April 29. 

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Another Northbrook resident, James Kennedy, who was also charged in March 2008, faces five counts of fraud and one count of obstruction of justice for allegedly threatening to injure an individual who was giving information about the case to law enforcement officials. Those officials allege that he forged the signatures of Alexander Calder, Marc Chagall, Joan Miro, Pablo Picasso and other artists, then traveled to art shows around the country to sell the counterfeit works, making nearly $1.3 million from the sales between 2005 and 2007. Kennedy, too, pled guilty, and awaits sentencing April 19.

Also charged in March 2008 were three men from Europe who allegedly distributed the counterfeit work, along with a Florida gallery owner and a New York art distributor.   

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According to federal law enforcement officials, the European individuals who were charged allegedly had fake prints manufactured by famous artists like Warhol and Picasso, complete with forged signatures, and then sold them as limited edition works. Dealers, including Zabrin, allegedly resold the counterfeit prints at prices much higher than their actual value. One of Zabrin’s sales allegedly involved two fake Picasso etchings with forged signatures that were sold on eBay, according to the U.S. Attorney’s Office. 

If the individuals charged are convicted, they could face a maximum penalty of 20 years in prison and a $250,000 fine for each count of mail and wire fraud. Kennedy’s obstruction of justice count carries a maximum penalty of 10 years in prison and a $250,000 fine.  

Randall Samborn, a spokesperson for the U.S. Attorney's Office, said the investigation of fraudulent works of art is still ongoing.


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