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John McEnroe Victim of Lawrence Salander Art Investment Scam

by Tina Kells | March 26, 2009 at 03:02 pm

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Tennis legend John McEnroe has fallen victim to an elaborate $88 million art investment scam. McEnroe and 25 other identified victims were allegedly swindled out of millions of dollars by New York art dealer Lawrence Salander.

John McEnroe lost $2 million after buying 50% ownership in two Arshile Gorky's, Pirate I and Pirate II. Under Salander's scam he oversold interest in several different pieces of art by selling the same shares to more than one investor.

Lawrence Salander ran his art investment scam for more than a decade before it was exposed. Between 1994 to 2007 Salander funded a lavish lifestyle on the money his clients had "invested" in art. He also inflated the value of the artwork when selling it to investors.

Art dealer Lawrence Salander, 59, was arrested at his New York home on Thursday, when he and his gallery were charged with 100 counts, including grand larceny and securities fraud, Manhattan District Attorney Robert Morgenthau told a news conference.

Salander pleaded not guilty in New York's Supreme Court and his bail was set at $1 million. He faces up to 25 years in prison on the most serious charge.

"We intend to vigorously defend against these allegations in the courtroom." Salander's lawyer Charles Ross said.