Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: June 25, 2014
The Firm
201-896-4100 info@sh-law.comLuke Brugnara is a former real estate investor who managed to attract media attention to himself over the years first with his bombastic claims about his personal wealth, then with his conviction for tax evasion and trout poaching, for which he was sentenced to 30 months and 15 months, respectively. It seems like Brugnara may have been at it again, ashe has been charged with mail fraud for an alleged attempt to steal $11 million worth of artwork. Let’s take a look at the case and at why the U.S. has established such strong mail fraud laws.
Brugnara allegedly told an art dealer that he wanted to buy several works of art for a rough total of $11 million. He agreed to pay $7.32 million for 16 Willem de Kooning paintings, $3 million for a sculpture by Edgar Degas, $450,000 for a George Luks painting, $160,000 for a Joan Miro drawing and $145,000 for an etching by Pablo Picasso. Apparently, he told the dealer that he was planning on opening a museum in San Francisco. When she said that she hadn’t heard of any new art museums in the city, he changed his answer to Las Vegas.
If that wasn’t enough to set alarm bells ringing, the art dealer claims that she asked for some of the money up front – more than reasonable for a transaction of this size. Brugnara allegedly claimed that he shouldn’t have to pay a deposit because an earlier transaction went off without a hitch.
Inexplicably, the dealer elected to send the art anyway, which arrived at Brugnara’s San Francisco home April 7, along with the dealer, who came to ensure that the art arrived undamaged. Brugnara was apparently surprised by the arrival of the dealer along with the art, and the dealer, in turn, was surprised that he ordered $11 million worth of art be stored in his garage. Brugnara allegedly told the dealer that he was too busy to open and check on the art for several days, before telling her to deal with his attorney. He then told his attorney that the art was given to him as a gift.
Brugnara appeared in court June 11 for arraignment, preliminary examination and a bond hearing.
The reason that this case is proceeding with the charge of mail fraud, and not simply theft, is that the U.S. Postal Service was used as the intermediary. The mail fraud statute was enacted in 1872 after an increase in post-Civil War mail fraud – so clearly the problem has been around for some time.
The basic problem is that it’s beneficial for the country to be able to conduct business remotely, but without an in-person exchange, it is difficult to trust people. If you send goods or money, how do you know that the other person won’t simply stop writing back? For this reason, mail fraud is a serious federal crime, which carries a maximum 20 year jail sentence.
In order for a defendant to be convicted of mail fraud – which falls under 18 U.S.C. 1341 – the following must be proved:
If the allegations against Mr. Brugnara are true, the plaintiff’s attorneys have a strong case for mail fraud, in my opinion.
If you have any questions about this post or would like to discuss your sports and entertainment matters , please contact me, Anthony R. Caruso at www.ScarinciHollenbeck.com.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Author: Angela A. Turiano
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Author: Dan Brecher
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
Author: Robert E. Levy
If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]
Author: Christopher D. Warren
Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!