Are art sales used as a form of money laundering?

[renard_ruse]

I never heard about this until today. Someone suggested these art auctions where the ultra wealthy spend millions of dollars on a painting that looks like it was done by a pre-schooler having a seizure or a sculpture that is an empty stand, etc, is actually a way for them to launder money.

Not being an uber rich art collector I never even thought about this until I heard this. It seems totally plausible and explains the ridiculous sums of money spent on seeming trash at these high end art auctions.

 

[Earthlyone]

I've long thought this myself.

 

[phrodeau]

The latest trend is NFT’s.

 

[CornusKousa]

Everything gets used for laundering money.

 

[pecksniff]

Well, how would that work, exactly? The rich fan gives money to the artist and the agent or gallery -- at what point would the crook's cut be taken out?

 

[LupusDei]

Well, how would that work, exactly? The rich fan gives money to the artist and the agent or gallery -- at what point would the crook's cut be taken out?

As it was once explained in a movie:

Alice sell an apple to Ben for $10.
Ben sell the apple to Cindy for $20.
Cindy sell the apple to Eric for $40.
Eric sell the apple to Fred for $80.
Fred sell the same apple back to Alice for $160.
Alice take $150 in credit with the apple as collateral.

Hint: in the value pumping loop, no real money changed hands, it was handshake deals between colluding friends.

 

[phrodeau]

Well, how would that work, exactly? The rich fan gives money to the artist and the agent or gallery -- at what point would the crook's cut be taken out?

The rich fan is the crook, buying an object with dirty money, then selling it and getting clean money.

 

[pecksniff]

The rich fan is the crook, buying an object with dirty money, then selling it and getting clean money.

But, how does that conceal the original source of the money?

 

[phrodeau]

But, how does that conceal the original source of the money?

Because the auction houses, galleries, agents and artists don’t care to find out. They’re also likely to all be in different countries.

 

[pecksniff]

Because the auction houses, galleries, agents and artists don’t care to find out. They’re also likely to all be in different countries.

So, you can launder money just by spending it? It's that easy?

 

[jomar]

So, you can launder money just by spending it? It's that easy?

Or you can own an apartment complex or two with a lot of empty apartments and undercharge for the occupied ones and dirty money becomes good rent money.

At least that’s how it works on Animal Kingdom, a sweet family show.

 

[pecksniff]

Or you can own an apartment complex or two with a lot of empty apartments and undercharge for the occupied ones and dirty money becomes good rent money.

At least that’s how it works on Animal Kingdom, a sweet family show.

IOW, "money laundering" involves manufacturing a plausible legitimate explanation of why you have the money.

 

[jomar]

IOW, "money laundering" involves manufacturing a plausible legitimate explanation of why you have the money.

Pretty much. You basically move crime money into origination from a legitimate source.

 

[srgreene]

Someone suggested these art auctions where the ultra wealthy spend millions of dollars on a painting that looks like it was done by a pre-schooler having a seizure or a sculpture that is an empty stand, etc, is actually a way for them to launder money.

Not being an uber rich art collector I never even thought about this until I heard this. It seems totally plausible and explains the ridiculous sums of money spent on seeming trash at these high end art auctions.

I too wonder how it would work. It's not as though the auctions occur with cash payments, at least as far as I know. If the money comes from a regulated financial institution and sent to one, the flow of money is identified.

It would be instructive to at least outline the mechanism for the kind of corruption at work here, rather than saying "someone suggested ...".

 

[CornusKousa]

So, you can launder money just by spending it? It's that easy?

Essentially.

By "spending" it with a legitimate vendor who can create asfs paper trail it legitimizes the money.

The vendor, for their part in this crime, gets a cut for taking their risks.

The IRS gets theirs and you now have "real" money.

Or you can own an apartment complex or two with a lot of empty apartments and undercharge for the occupied ones and dirty money becomes good rent money.

At least that’s how it works on Animal Kingdom, a sweet family show.

That's high risk...leases exist and create a paper trail of how many units were rented, to who and for how much. That's a lot of paperwork to keep up, because if it doesn't all line up?? investigations heat up....

Thus something like a car wash....
https://www.bankrate.com/2016/10/24161515/breaking-bad-skylar-walter-white-car-wash-amc-mst.jpg?auto=webp&optimize=high&crop=16:9

It's a petty cash service.....there are very little or no real goods exchanged and it's all in such small amounts and there is little to nothing connecting you to your customers. You can print out all the receipts for small amounts that people use cash for all the time that you want and none of it looks out of place.

So long as you don't do too many of them obviously.

IOW, "money laundering" involves manufacturing a plausible legitimate explanation of why you have the money.

That's the basic concept yes.

Obviously this gets harder the more money you're trying to launder.

More money, more problems.

 

[jomar]

…

That's high risk...leases exist and create a paper trail of how many units were rented, to who and for how much. That's a lot of paperwork to keep up, because if it doesn't all line up?? investigations heat up....

Thus something like a car wash....

It's a petty cash service.....there are very little or no real goods exchanged and it's all in such small amounts and there is little to nothing connecting you to your customers. You can print out all the receipts for small amounts that people use cash for all the time that you want and none of it looks out of place.

So long as you don't do too many of them obviously.

…

Yeah well in my tv show they’ve done apartment complex laundering for decades and have printers and even corrupt attorneys and shit to move lots of mownay from the slick crimes they pull off under the direction of mama smurf, the matriarch of the lovable little crime family.

So piss off all your show has is the ability to run a few bucks through a weak car wash metaphor; they may as well have used an actual laundromat so the viewers with strong backs and weak minds might slowly understand and smile knowingly.

 

[CornusKousa]

Yeah well in my tv show they’ve done apartment complex laundering for decades and have printers and even corrupt attorneys and shit to move lots of mownay from the slick crimes they pull off under the direction of mama smurf, the matriarch of the lovable little crime family.

So piss off all your show has is the ability to run a few bucks through a weak car wash metaphor; they may as well have used an actual laundromat so the viewers with strong backs and weak minds might slowly understand and smile knowingly.

Organized and government backed crime vs. the independent guy......what can I say, I've always favored the person doing their own thing, middle fingers in the air.

 

[jomar]

Organized and government backed crime vs. the independent guy......what can I say, I've always favored the person doing their own thing, middle fingers in the air.

Your response just might be the perfect encapsulation of many of your responses, i.e., missing the point and adding irrelevant info.

Animal Kingdom gives you a ten finger salute.

 

[Biggs_Darklighter]

I've always thought a laundromat would be a great way to launder money. All cash business, no real way to track amounts. You're just an incredibly successful laundromat.