Julian Radcliffe

Reducing Theft and Avoiding Fakes10th April 2013

• Balkans Strategy• Fakes/ Fraudulent Claims• Due Diligence Searching • Watches/ Diamonds

Contents

Balkans Strategy

• History• Opportunity• EU/NATO• Economic• Crime Corruption

NEGOTIATIONS UNDER DURESS

Public Policy Principles

• No negotiations unless police approved• No ransoms to thieves• Minimise payment to informers/middlemen• Maximise

intelligence/convictions/recoveries• Payments to good faith buyers may be

significant

50%

Value of Objects

Amount Paid For Surrender/ Settlement

5%

100%

Criminals Who Steal Extortion

Handlers Rewards Information

Art Trade Searching

Good Faith Purchases/Private

Collector

Sensitive Area

COMPENSATION SPECTRUM

Factors influencing payment

Reduce percentage for:• Higher Value• Recent thefts• No convictions• Less IntelligenceBut:• Danger of destruction• Ease of selling e.g. gold content• Removal of currency

• Serbian theft from Rotterdam registered in 2002• Due diligence searching internet• Posed as buyer/ payment• Recovery Canada/ Serbia/ Belgium/ France • No claim

Case studies: R1200 Mondrian

Piet Mondrian, Riverscene, oil on canvas on panel

Case studies: R1367

• Theft Paris

• French Police operation Serbia

• Recovery min payment

George Rouault, Female Nude, oil on canvas

CASE STUDIES: R 1315

• Theft in Oberwil Switzerland

• Insurer suspicious

• Items in Serbia inflated values.

Fraudulent Art Claims prevented/ fakes database /

proved by recovery

• Noortman £1m staged theft• California $22m staged and inflated• Jewellery – Diamond ring, claims sold by owner

Willem van de Velde II, seascape, oil on canvas

Due diligence searching 300.00-400.000 checks by ALR per

annum

For:• Auctions• Dealers• Fairs• Police• Internet• Underwriters to encourage

Central Database

• ALR established in 1991, worlds largest database of over 360,000 art, antiques and collectibles

• Registration, searching, Identification & restitution of stolen works - market value in excess of £100 million

Aims:• Providing a central “checkpoint” for purchasers and

buyers• Identifying and recovering stolen, missing and WW2

works of art• Reducing theft/trade in stolen art by impeding the

potential resale • Reducing loss ratio for the insurance industry

Watches Proposed database

COLLECTOR

DEALERSAUCTIONS

MANUFACTURER

INSURER

POLICE

DATABASEREAL NUMBERSFAKESSTOLEN

INTELLIGENCE

INFO AND THEFTSCHECKS

Damages

• Bakwin 3 million dollars

• Noortman circa 5 million pounds

Paul Cezanne, still-life with apples, oil on canvas

Diamonds

• Identification

• Certification

• Marking

• Gemprint

Gemprint

The Future

• Reduce theft by making selling on uneconomic.

• Due Diligence searching

• Increase fake checks on items insured

• Pursue Damages

Virtuous circle

• Need for collective action

• Role of leaders

• Competition

Julian RadcliffeChairman – The Art Loss Register

Reducing theft and Avoiding Fakes