NEW YORK — A tearful testimony from Russian billionaire Dmitry Rybolovlev revealed his sense of betrayal and disappointment in the art market as he accused Sotheby’s of colluding with a Swiss art dealer to defraud him of tens of millions of dollars. Rybolovlev, once worth at least $7 billion, took the stand in Manhattan federal court in support of his lawsuit against the auction house. Expressing his deep trust in his art dealer, Yves Bouvier, Rybolovlev described how their close relationship led him to “completely and utterly trust a person.”
Rybolovlev’s legal team claims that Bouvier profited by buying valuable artworks from Sotheby’s and reselling them to Rybolovlev at inflated prices. Over the course of 12 years, Rybolovlev spent approximately $2 billion on art as he built a world-class collection. The loss of over $160 million, allegedly caused by Sotheby’s actions, prompted Rybolovlev to seek justice in court. Despite trusting his advisers, Rybolovlev admitted to not scrutinizing transaction documents, leading to his financial distress.
In his emotional testimony, Rybolovlev blamed the lack of transparency in the art market for his plight, claiming that even major companies like Sotheby’s contributed to the confusion and made it difficult for experienced clients to distinguish between legitimate and fraudulent practices. He emphasized that his lawsuit was not solely about money but about the need for greater transparency in the art market.
These allegations have led to a trial with only four art pieces in dispute, including Leonardo da Vinci’s “Salvator Mundi.” Bouvier allegedly purchased the artwork from Sotheby’s for $83 million and promptly sold it to Rybolovlev for over $127 million. In 2017, Rybolovlev sold the artwork for a record-breaking $450 million, making it the most expensive painting ever sold at auction.
Throughout the trial, Sotheby’s has denied any wrongdoing, with its attorney Sara Shudofsky arguing that Rybolovlev is trying to make innocent parties pay for the actions of others. Rybolovlev’s lawyer, Daniel Kornstein, accused Sotheby’s of greed and complicity in an elaborate fraud orchestrated by Bouvier.
While Bouvier settled with Rybolovlev under undisclosed terms, his legal team rejects all allegations of fraud. They point out that legal cases against Bouvier in various international jurisdictions have been discontinued, undermining Rybolovlev’s claims.
Rybolovlev, who has not lived in Russia for three decades, was not among the list of Russian oligarchs sanctioned by the Trump administration following Russia’s actions in Ukraine.
In conclusion, the trial between Dmitry Rybolovlev and Sotheby’s sheds light on the need for greater transparency in the art market. Rybolovlev’s allegations of being defrauded by his trusted dealer and Sotheby’s underscore the vulnerability of even experienced clients in a field where murky practices persist. The outcome of this high-profile case will likely shape discussions around accountability, trust, and integrity in the art market.