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A New York judge has rejected a motion by Sotheby’s to dismiss a lawsuit brought by the state attorney general against the auction house, alleging it allowed a collector to tax sales on $27 million worth of art. helped to escape.

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The lawsuit, filed in November, alleges that between 2010 and 2015, Sotheby’s submitted fraudulent paperwork to masquerade as an art broker instead of a collector, costing them millions on city and state taxes. Saved.

Sotheby’s tried to dismiss the case in December, arguing that the firm was not guilty because only a small number of employees were aware of the wrongdoing.

In its ruling on Tuesday, the judge said a “principal client manager” had visited the client’s apartment to view the art, and was not disqualified that the Sotheby’s accountant who reviewed the false forms did not know they were were not authentic. To Reuters.

Sotheby’s did not respond to requests for comment.

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Although the client’s name was not in the suit, he is linked to Porceal Equities. Two years ago, Porcell agreed to pay $10.75 million to settle charges against it for dodging millions in taxes through misappropriation of resale certificates, which are dealers and allow them to claim tax exemptions. allow. Now, Attorney General Letitia James is going after the auction house itself, alleging that at least 12 Sotheby’s employees knew the client was buying the art for themselves and that some were asking clients to help hang the work. had also gone home. The collector reportedly did not pay tax on the works of high-profile artists such as Jean-Michel Basquiat and Anish Kapoor. Last year, a Sotheby’s spokesperson told Businesshala that they “strongly refute the baseless allegations.”

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34. That is, the customer allegedly did not pay taxes on the amount of art.

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