Whereas a lot of the artwork world is off on summer time holidays, information broke earlier this week of a bitter authorized battle between prime artwork advisor Barbara Guggenheim and her former companion Abigail Asher.
The implosion of the advisors’ high-profile partnership, Guggenheim Asher Associates (GAA), has despatched waves by way of an business already reeling from vendor Tim Blum’s announcement earlier this month that he was shuttering his eponymous gallery.
In a broadly shared publish on LinkedIn, collector Sylvain Levy put the information in stark phrases.
“The collapse of Guggenheim Asher Associates, as soon as a pillar of the worldwide artwork advisory panorama, is greater than a personal dispute between two distinguished figures,” Levy wrote. “It’s a public second of reckoning for an business that has lengthy operated on belief, discretion, and informality on the highest ranges.”
The dispute, Levy continued, reveals a “systemic failure in governance” within the artwork world, and specifically within the advisory career, which “stays one of many least regulated inside the world cultural financial system … ruled much less by codified requirements than by networks of status.”
The authorized battle started final August, when Guggenheim accused Asher of misusing agency funds and staking a declare to as much as $20.5 million in future commissions from purchasers who observe her after the the 2 parted methods, regardless of no non-compete clause and a enterprise that had already dissolved. In keeping with court docket filings, Asher is accused of utilizing the cash for every thing from residence enhancements to meals and European well being membership retreats.
Whereas Asher initially sought to have the swimsuit dismissed, earlier this week she countersued, alleging that her former companion “stole cash from the agency to pay private bills, together with her husband’s funeral prices, luxurious autos, and household holidays.” Asher additionally claims that Guggenheim chronically bullied her, threatened her, and instructed her to “put on leather-based and be provocative”—and even to sleep with purchasers to drum up enterprise.
Notably disturbing is the allegation that Guggenheim inspired Asher to construct a relationship with Jeffrey Epstein, a pal of Guggenheim’s who—years after the occasions outlined in Asher’s swimsuit—was convicted of sexual offenses towards minors, so as to construct a portfolio of well-heeled purchasers.
Guggenheim has confronted related allegations previously. In 1989, actor Sylvester Stallone filed a $5 million civil fraud swimsuit alleging that the advisor pressured him into shopping for broken works and in the end overcharged him. That case was settled out of court docket.
A part of GAA’s pristine status stemmed from the truth that each girls have been government members of the Affiliation of Skilled Artwork Advisors (APAA), an invitation-only membership group that promotes “requirements of connoisseurship, scholarship, and moral apply within the career,” and whose members “are distinguished by adherence to a core set of moral rules.”
However artwork advisor Maria Brito, who just isn’t affiliated with the APAA, mentioned there’s solely a lot such a company can do.
“Not even a regulatory physique can forestall advisors from committing fraud, from breaking moral guidelines, or committing tax fraud,” Brito informed ARTnews. “The most important downside isn’t their reputations; it’s the likelihood that one or each broke state or federal legal guidelines or defrauded the IRS.”
Earlier this 12 months, once-prominent artwork advisor Lisa Schiff was sentenced to 2.5 years in jail after pleading responsible to orchestrating a Ponzi-esque scheme that drained greater than $6.4 million from mates and purchasers. Whereas Schiff was not a member of the APAA, she constructed her profession in the course of the artwork market’s rise within the early aughts. In 2000, when she opened her advisory, the APAA had solely 60 members. Immediately, that quantity has grown to 185—whereas numerous different advisors stay outdoors the group.
In 2023, when information of Schiff’s misconduct grew to become public, APAA president Alex Glauber informed City & Nation that the group’s membership requirements are “designed to counter the realities of a discipline with no obstacles to entry. Collectively, these requirements goal to outline advisory finest practices inside an amorphous discipline usually impugned by these unqualified at finest and deceitful at worst.”
When approached for remark in regards to the Guggenheim–Asher lawsuits, a spokesperson for the APAA informed ARTnews: “Like everybody, we nonetheless have extra to study and are usually not able to evaluate the allegations. We received’t be capable to present a remark presently.”
It’s no shock that, following such a high-profile authorized dispute, the business in query is going through extra scrutiny, in response to Megan Fox Kelly, an APAA member and former president.
“Any time a partnership like this, after many years of prominence, dissolves by way of litigation, it attracts consideration and raises questions in regards to the construction of the enterprise and its governance,” Fox Kelly informed ARTnews. “Each advisors have robust reputations and lengthy observe information. And I might hope there’s nonetheless a path ahead for them, whether or not collectively or independently.”
In 2024, simply two months earlier than Guggenheim filed her swimsuit, Cultured reported that Asher had parted methods with GAA, the place she suggested main company purchasers like Sony and A-listers together with Tom Cruise. With litigation ongoing, it stays unclear what impact—if any—the general public and messy dissolution of such a distinguished partnership could have on the advisory enterprise as an entire.
“Each time we see this sort of fraud I feel it ought to give individuals pause,” advisor Ralph DeLuca informed ARTnews. “My recommendation, if you wish to work with an advisor, do your homework. Ask artwork sellers and public sale homes. Observe how they reside. In the event that they aren’t accountable with their cash, what do you suppose they’ll do with yours?”
