Accused Fake Art Sales Figure Pleads Not Guilty in N.Y.

An art dealer accused of conspiring to sell $30 million in fake works purportedly by masters including Mark Rothko and Jackson Pollock, pleaded not guilty in federal court in New York.

Glafira Rosales entered a plea today before U.S. District Judge Katherine Polk Failla in Manhattan to a nine-count indictment. Rosales faces charges including conspiracy to commit wire fraud, conspiracy to commit money laundering, wire fraud, money laundering and tax crimes.

Assistant U.S. Attorney Jason Hernandez said the government may reach an agreement with Rosales by the end of the month.

“We believe we are going to reach a disposition in this case,” he said. “I believe we are still on track to do that on or before Aug. 30.”

Rosales helped sell the fake works to at least two galleries, the government alleged. Purchasers of artwork from New York’s now-defunct Knoedler Gallery filed a lawsuit in 2012 alleging that they bought a fake Rothko supplied by Rosales.

Rosales had offered at least 20 purportedly “undiscovered” artworks, including the Rothko work, according to a complaint filed in September. The dealer had invoked the Fifth Amendment when testifying previously about the source of her works, according to the complaint.

A lawyer for Rosales, Steven Kartagener, declined to comment on the case.

The criminal case is U.S. v. Rosales, 13-cr-00518, U.S. District Court, Southern District of New York (Manhattan).

To contact the reporter on this story: Christie Smythe in New York federal court at csmythe1@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net

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