Page:2020-07-29 PSI Staff Report - The Art Industry and U.S. Policies that Undermine Sanctions.pdf/16

 Mr. Baltser purchased over $18 million in art from May to November 2014 using funds traced to Rotenberg-linked shell companies. These transactions included a $7.5 million private sale of René Magritte's La Poitrine in which Highland Ventures took title to the painting, and Advantage Alliance wired the purchasing funds. The Subcommittee traced those funds from Advantage Alliance to Senton Holdings Ltd, which one financial institution determined was owned by Arkady Rotenberg. An employee of Mr. Omelnitski's signed the contract for sale on behalf of Highland Ventures.

Mr. Baltser sought to sell art linked to the Rotenbergs. In August 2015, an employee of BALTZER sent Christie's a list of 31 artworks, including 16 works the Subcommittee linked to Rotenberg-related shell companies. The BALTZER employee indicated the 31 pieces belonged to the same collection and sought "any opportunities to promote these works or to make this collection more valuable." That list included René Magritte's La Poitrine and Lyonel Feininger's Brucke II.

In February 2019, Sotheby's and Christie's competed to sell Lyonel Feininger's Brucke II; Sotheby's was selected to sell the painting. Both Sotheby's and Christie's provided enhanced deal terms to sell the painting at auction. Sotheby's planned to auction the painting at its February 26, 2019 Modern Art Evening Sale in London. The painting was estimated to sell for between £4 million and £6 million. Prior to the auction, however, Sotheby's stated it pulled the painting due to a lack of interest.

When questioned by Sotheby's, Mr. Baltser declined to provide the February 2014 purchaser of Brucke II. Brucke II was purchased by Mr. Baltser on behalf of an undisclosed client at a Christie's auction in February 2014. In April 2019, Sotheby's asked Mr. Baltser to reveal the name of the February 2014 buyer. Mr. Baltser did not reveal the name, but asserted the February 2014 buyer no longer owned Brucke II. Instead, he stated the painting now belonged to a Marshall Islands company and provided a Russian passport for the UBO of the company.

During the course of the Subcommittee's investigation, Sotheby's, Christie's, and Phillips stopped transacting with Mr. Baltser and BALTZER.

Rotenberg-linked companies continued to move at least $91 million through the U.S. financial system following the imposition of U.S. sanctions in March 2014. The Subcommittee determined that companies linked to the Rotenbergs continued to have access to the U.S. dollar and the U.S. financial system despite the imposition of sanctions against Arkady and Boris Rotenberg.