Manhattan Developer Accused of Evading State Taxes on Artby
Charges come amid scrutiny of art deals by legal authorities
Shvo pleaded not guility and is released on $500,000 bail
Michael Shvo, a real estate developer, was charged with evading taxes on his art collection, Manhattan District Attorney Cyrus Vance said Thursday.
Shvo, a former real estate broker who closed his firm during the financial crisis and is now building luxury homes, was released on $500,000 bail after he pleaded not guilty at a hearing in Manhattan State Supreme Court.
The charges were announced as art dealers and collectors are coming under increased scrutiny for offenses from fraud to tax evasion. In May, New York Attorney General Eric Schneiderman announced tax settlements against Aby Rosen, a New York real estate developer and art collector, and Victoria Gelfand, a Gagosian Gallery sales executive.
Soaring prices and secrecy in the art world, coupled with a lack of regulation surrounding major transactions, spurred allegations in recent years that collectors and dealers have used valuable art works to launder money, dodge taxes and defraud purchasers and investors.