Russian Oligarch “Dmitry Rybolovlev Shady Art Deal
Dmitry Rybolovlev, a Russian billionaire who weathered the collapse of the Soviet Union, successfully navigated the 1990s by founding a bank in Russia and amassing a $7 billion fortune through the sale of a potash fertilizer company. He diversified his wealth internationally, investing in assets like a Cypriot bank, Monaco's soccer team, a Greek island, and multiple family residences in Switzerland, Monaco, New York, and Hawaii.
However, Rybolovlev recently found himself embroiled in a legal battle, emotionally testifying in a Manhattan federal court against Sotheby’s. He alleges the auction house colluded with Swiss art dealer Yves Bouvier, defrauding him of tens of millions in the process. This accusation, stemming from his experience of being deceived in what he describes as an opaque art market, was a central theme during his two days of testimony supporting his lawsuit against Sotheby’s.
Rybolovlev's legal pursuit aims to hold Sotheby's accountable for a claimed loss exceeding $160 million. His lawyers argue that Bouvier secretly acquired famous artworks from Sotheby's at lower prices, only to sell them to Rybolovlev at significant markups. Between 2002 and 2014, Rybolovlev invested roughly $2 billion in art, amassing a prestigious collection.
During cross-examination, Sotheby's defense highlighted Rybolovlev's reliance on his advisors and his lack of insistence on detailed documentation, even when acquiring art worth millions.
Rybolovlev criticized the art industry's lack of transparency, claiming it financially harmed him and obscured the processes within. He emphasized the need for clarity, especially when dealing with reputed firms like Sotheby's, suggesting they should have been aware of, and disclosed, the unfair practices he was subjected to.
When questioned about his motivations for suing Sotheby's, Rybolovlev stressed the importance of transparency in the art market, beyond just monetary considerations. He argued that clients are at a disadvantage when the industry's leading companies engage in such questionable activities.
Sotheby’s attorney, Sara Shudofsky, countered in her opening statement, portraying Rybolovlev as unfairly targeting Sotheby's for the actions of another party.
Central to the trial are four artworks, including Leonardo da Vinci’s “Salvator Mundi.” Rybolovlev's lawyers claim Bouvier purchased it from Sotheby’s for $83 million and sold it to Rybolovlev the next day for over $127 million. In a landmark 2017 auction, Rybolovlev sold the painting through Christie’s for a record-breaking $450 million, making it the most expensive painting ever sold at auction.
