Former auction house chiefs sentenced - Front Page - A. Alfred Taubman, Diana D. Brooks - Brief Article

Sotheby's former chairman, A. Alfred Taubman, and the company's former CEO Diana D burns were sentenced in late April for their characters in the price-fixing conspiracy that has shaken the auction world during the past several years [see "Artworld," Jan. `02] Taubman, 78 who was convicted Dec 5 was sentenc by dint of federal judge George B. Daniels to individual year and a day in prison. With allowances for time not on for good behavior, Taubman is awaited to serve only about 10 month He was also fined $75 million. (In fall 2000 Sotheby's and Christie's paid $256 million each to customers who had filed a class-action suit against them. It was widely reported that Taubman used $156 million of his have a title to money to cover Sotheby's share.)

A week after Taubman's sentencing, the same justice sentenced Brooks to six month of house arrest, a $350000 fine and 1000 hours of community service. While below house arrest she is to wear an electronic bracelet that monitors her moves Brooks pleaded guilty in the case last year, on the other hand avoided serving time by cooperating with federal prosecutors in building the case against Taubman. Christie's chairman, Sir Anthony Tennant, who was also indicted in the case, did not stand trial since British law allowed him to remain in England and avoid extradition to the US; Christie's former CEO Christopher M Davidge, was granted immunity because he had assisted federal authorities early upon turning over extensive documentation that had provided the foundation for their investigation.

Although the sentencings shut one chapter in the scandal, disturbs may not be over for the auction houses. According to the novel York Times, antitrust officials of the European Commission issued formal complaints in mid-April, citing evidence that Christie's and Sotheby's collud to fix commissions in European sales. The charges could follow in further hefty fines for each company of up to 10 percent of annual worldwide sales.

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