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 create an anonymous shell in one jurisdiction that controls an anonymous trust in a completely different country that also controls a bank account in a third country."

C. The Four Major Auction Houses

High-value art sales generally occur through a private sale or a public auction. Sotheby's, Christie's, Phillips, and Bonhams are among the most well-known auction houses in the world, each dating back to the 1700s. In addition to the largest auction houses, there are over 500 second-tier auction houses that play a significant role in national and international markets, and numerous small auction houses that provide services to domestic markets. Since the highest value transactions are generally processed by the most well-known auction houses, this report concentrates on their role within the U.S. art market.

1. Sotheby's

In 1744, Samuel Baker established Sotheby's in London. At the outset, the company became successful by auctioning books, and later expanded its business to prints, coins, medals, and antiquities. After World War I, Sotheby's began to focus on "the sale of pictures and decorative works of art." In 1964, Sotheby's started a period of global expansion after its purchase of Parke-Bernet, the largest fine art auction house in the United States at the time. Headquartered in New York, Sotheby's currently has ten salesrooms around the world, including in London, Hong Kong, and Paris. Beyond those salesrooms, Sotheby's BidNow program permits remote clients to participate in online auctions around the world. Notable Sotheby's auctions include the 2012 sale of Edvard Munch's The