By Matthew Russell Lee, Patreon Substack
SDNY COURTHOUSE, Jan 8 – Sotheby's defrauded two British Virgin Islands companies controlled by Russian oligarch Dmitry Rybolovlev, the companies alleged in a lawsuit in the U.S. District Court for the Southern District of New York that Inner City Press first reported on in 2020. It involved inflated art prices.
On July 15, 2020 SDNY Judge Jesse M. Furman held a proceeding. Inner City Press covered it.
While the lengthy conference had a series of discovery issues, there was also discussion of a settlement.
And Judge Furman ordered that defendants "shall submit a copy of the settlement agreement by email to the Court for in camera review."
Jump cut to January 4, 2024, the Thursday before a Monday trial to last the rest of the month. Plaintiff's counsel argued to have the BVI company, Accent Delight International, listed in the Sotheby's opening demonstratives, and that no reference be made to Rybolovlev's "lieutenant," saying that term connotes organized crime.
Judge Furman denied the motion, saying it mostly connotes the military. He granted Sotheby's motion to bar plaintiffs from saying some 2012 pay records were withheld or even missing, saying it should be "unavailable." The nine jurors are to be selected on January 8, then openings.
On January 8, Inner City Press live tweeted the opening statements, here
On January 9, Rybolovlev's lawyer examined Mikhail Sazonov all day, Inner City Press live tweeted, thread here:
OK - Russian oligarch v Sotheby's trial Day 2 with Mikhail Sazonov on the witness stand.Rybolovlev's lawyer: What did you think this document was?
Sazonov: Confirmation from the seller that the warranties of the seller were true, complete and accurate at the date of the release of the painting. R's lawyer: Who did you get it from? S: Bouvier
Rybolovlev's lawyer: Beyond the 2% commission you paid Bouvier, did you believe he was receiving any other compensation? Sazonov: No.
Rybolovlev's lawyer: When did you discover Bouvier's fraud? Sazonov: Last day of 2014. Trial is on 30 minute break - Inner City Press ran to a guilty plea proceeding, Defendant when asked if medicated said Yes, about hearing voices. It proceeded, as will this feed
They're back. Judge: Mr. Sazonov, you're still under oath. Rybolovlev's lawyer: What is this? Sazonov: Mail from myself to Mr. Bouvier. A stream of emails. To arrange a viewing of art in Basel. It was my understanding he was our agent
Rybolovlev's lawyer: How did the purchase of the Magritte come about? Sazonov: Mr. Rybolovlev went to see the paintings and he liked them. Rybolovlev's lawyer: And Mr. Bouvier here wrote, He wanted to know if Mr. Rybolovlev still had money to devote to art now Rybolovlev's lawyer: How did you think Mr. Bouvier was keeping you informed of his negotiations?
Sazonov: I thought he was being a good agent. Rybolovlev's lawyer: Here is a stipulation - Judge: That's a fancy lawyer word for agreement.
Rybolovlev's lawyer: For the Magritte, did you think you were paying Mr. Bouvier anything more than his commission? Sazonov: No. R's lawyer: Did Dmitri celebrate his birthday in Hawaii that year? Sazonov: Yes. R's lawyer: And did Mr. Bouvier attend? S: Yes.
Rybolovlev's lawyer: This statement by Mr. Bouvier that the buyer was asking for more, the parties have stipulated it was false. But at the time, what did you believe? Sazonov: That is was true.
Nearing the end of the day's direct examination at 2:30 Sazonov: Bouvier was playing his little game -- Rybolovlev's lawyer: But at the time you believed it. Sazonov: I did. Judge: We'll call it for the day. It's lousy weather out there. Story coming
Meanwhile, Sotheby's submitted a filing that "Plaintiff’s request to preclude introduction of the fact that Accent Delight and Dmitry Rybolovlev sold the Da Vinci in 2017 should be denied" - full filing on Patreon here
More on Substack here
The case is Accent Delight International Ltd. et al v. Sotheby's et al., 18-cv-9011 (Furman)
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