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What I've heard is that this is essentially a front for money laundering, just like you see in fine art. Anyone have any evidence? Here's how the theory goes
by larsiusprime 5y ago
What I've heard is that this is essentially a front for money laundering, just like you see in fine art. Anyone have any evidence?
Here's how the theory goes
- I have $2M in dirty money
- I find some reasonably rare collectors item that's worth a lot but certainly not $2M (like unopened copy of SMB) and buy it
- I put it up for auction and give my $2M to a trusted associate
- Trusted associate bids $2M
- Wow! Wouldn't you know it? Someone's crazy enough to pay $2M for this!
- Trusted associated takes their cut and now my $2M is clean --- I got it from the sale of a rare copy of SMB at auction
Because after all, who can really say that a copy of SMB isn't really worth $2M? It's value is ultimately subjective like fine art is, and someone was willing to pay that price, haha collectors be crazy speculators and all that.
Is there anything to this theory?
- 1123581321 5y agoI’m sure it happens, but transferring 2MM to the trusted associate’s account in a way that the art auctioneer would accept, without suspicion, would still be challenging. Selling hundreds of junk “collectibles” for cash at a retail location seems more reliable.
- larsiusprime 5y agoCool. It does seem like an ostentatious obvious thing that would make it easy to get caught. What do you think of the fine art world?
- Kamran224 5y agoWouldn't the associate be at risk at audit for having $2M unreported income and untaxed money?
- tshaddox 5y agoYeah, this story doesn’t seem to really explain much, because the person receiving the dirty money and returning it is literally just performing the act of money laundering. It’s not clear what about art auctions specifically makes this easier or less risky.
- listenallyall 5y agoAbout a week ago a Patrick Mahomes card sold for a record $4.3 million. Not sure it's a money laundering scheme, but perhaps a way of promoting or pumping the price of similar collectibles. https://www.google.com/amp/s/www.si.com/nfl/chiefs/.amp/news/kc-chiefs-patrick-mahomes-rookie-card-sells-for-4-3-million-shatters-sales-record https://www.google.com/amp/s/www.si.com/nfl/chiefs/.amp/news...
- wodenokoto 5y agoWhere did trusted associate get 2 million? (from you, but that's dirty money. Now your associate has a 2 million dirty money problem)
- pestatije 5y agoI think it goes more like this: - I have $4M in dirty money - I find some associate willing to exchange $2M in clean money for $4M in dirty money - I find unopened SMB and buy it, put it for auction - Trusted associate bids $2M, gets SMB and $4M.