A courtroom in Manhattan became a stage for high-stakes drama as Russian billionaire Dmitry Rybolovlev, once valued at least $7 billion, broke down in tears on Friday during his testimony against the renowned auction house Sotheby’s. The emotional outburst marked the culmination of two days of testimony in Rybolovlev’s legal battle, where he accused Sotheby’s of colluding with Swiss art dealer Yves Bouvier in a scheme that allegedly cost him over $160 million.
Dmitry Rybolovlev, a fertilizer magnate, narrated the intimate trust he had placed in Bouvier, considering him akin to a family member. “There is a time when you start to completely and utterly trust a person,” he lamented. The billionaire contends that Bouvier exploited this trust, allegedly purchasing valuable artworks from Sotheby’s at lower prices before selling them to Rybolovlev at significantly inflated rates. The lawsuit aims to hold Sotheby’s accountable for the claimed financial loss, totalling about $2 billion over the art purchases made from 2002 to 2014.
Under cross-examination, Sotheby’s legal team raised questions about Rybolovlev’s due diligence, highlighting his reliance on advisers and his failure to scrutinize transaction documents. Despite the billionaire’s admission that he did not demand a closer look into the financial details, Rybolovlev shifted the blame onto the opaque practices prevalent in the blue-chip art world, asserting that Sotheby’s should have been aware of the alleged fraud and intervened.
During his testimony, Rybolovlev emphasized the broader implications of his legal pursuit, stating, “It’s important for the art market to be more transparent. Because… when the largest company in this industry is involved in actions of this sort, clients don’t stand a chance.” His lawyers echoed this sentiment, arguing that Sotheby’s choices fueled an elaborate fraud, choosing greed over transparency.
In response, Sotheby’s attorney Sara Shudofsky contended that Rybolovlev sought to make an innocent party pay for the actions of others. Rybolovlev’s lawyer, Daniel Kornstein, accused Sotheby’s of succumbing to greed and becoming a willing participant in the alleged fraud.
The trial revolves around four art pieces, including Leonardo da Vinci’s “Salvator Mundi,” a painting that Rybolovlev’s legal team claims Bouvier purchased from Sotheby’s for $83 million, only to resell it to Rybolovlev a day later for over $127 million. In 2017, Rybolovlev sold the painting through Christie’s for an unprecedented $450 million, making it the most expensive painting ever sold at auction.
Yves Bouvier, the Swiss art dealer at the centre of the controversy, settled with Rybolovlev in December under undisclosed terms. His lawyers strongly objected to allegations of fraud, noting that legal cases against Bouvier in various jurisdictions had been discontinued.
Despite the legal turmoil, Rybolovlev’s prominence extends beyond the art world. In 2018, he was included in a Trump administration list of Russian politicians and oligarchs linked to President Vladimir Putin. However, his lawyers emphasized that Rybolovlev, a former cardiologist turned businessman, has not resided in Russia for three decades.
As the courtroom saga unfolds, it highlights the fragility of trust in the high-stakes art market. It raises broader questions about the need for transparency and ethical conduct within the industry.