A multimillion-dollar Basquiat painting, caught in the crossfire of one of the art world’s most notorious fraud cases, is inching closer to a resolution on its rightful owner. After years of legal wrangling, a U.S. magistrate has weighed in on the dispute, though the final gavel has yet to fall.
The saga began when disgraced art dealer Inigo Philbrick, fresh out of federal prison for wire fraud, pulled off a high-stakes con involving a 1982 Basquiat. Philbrick snagged the piece from Phillips auction house for a cool $12.5 million in 2016, then proceeded to sell it multiple times over.
Enter Alexander “Sasha” Pesko and Damian Delahunty, who thought they were buying chunks of the painting through legit deals. Little did they know, Philbrick was spinning a web of lies, even inventing a fake company to seal the deal.
But Philbrick wasn’t done. He turned around and used the same Basquiat as collateral for a $10 million loan from Athena Art Finance, stashing the painting in their New York vault. When Philbrick’s house of cards came tumbling down in 2019, Athena called in their chips, setting off a legal firestorm.
This week, U.S. Magistrate Judge Valerie Figueredo dropped a bombshell, calling Philbrick’s moves a “fraudulent conveyance.” While it’s not the final word, it’s a major win for Pesko and Delahunty in their fight against Athena’s claim on the artwork.
Athena’s not throwing in the towel just yet. Their lawyer, Jonathan Shapiro, is gearing up for an appeal, arguing that similar cases have sided with lenders like them in the past.
For now, Pesko’s team is riding high, though they’re keeping mum on the ruling. Delahunty’s attorney, Gregory Clarick, couldn’t hide his satisfaction, pointing out that Philbrick’s shady deals shouldn’t give Athena any claim to the painting.
As the legal slugfest continues, this $12 million Basquiat remains in limbo – a prized canvas caught in the fallout of an art world con for the ages. Stay tuned, folks – this paint-splattered drama is far from over.