Russian tycoon granted temporary injunction over Hong Kong-linked art swindle claims
A Russian billionaire has been given the green light to pursue an injunction restraining a Swiss art dealer, whom he believes has pocketed US$1 billion in secret profits from him, from removing assets from Hong Kong.
Dmitri Rybolovlev, who owns French top-tier soccer club AS Monaco and built an art collection worth around US$1.49 billion is taking the step as part of the worldwide injunction against the dealer, Yves Bouvier.
The tycoon, through his companies Accent Delight International and Xitrans Finance, sued Bouvier and his firm, MEI Invest, in Singapore on March 12. He also asked for a worldwide injunction to prevent Bouvier removing up to US$500 million.
A judge at the High Court granted a temporary injunction in light of the foreign proceedings. Although Bouvier's lawyer queried whether the local court had the jurisdiction to grant the order, deputy judge John Saunders allowed the tycoon to make a formal application.
"The factual circumstances raise a very strong case of breach of fiduciary duty or deceit. That is a factor that the court is entitled to take into account in determining the risk of dissipation," Saunders wrote in the judgment.
The claim says Bouvier, who lives in Singapore, engaged in private purchase and sale of valuable works of art.
Bouvier obtained a missing certificate of authenticity for a painting by Marc Chagall for the tycoon in 2003 and they entered into a business arrangement whereby Bouvier would obtain two per cent of any purchase price as commission.
The tycoon's extensive collection included works by da Vinci, Matisse, Picasso, Monet, Renoir, Modigliani, Degas, Gauguin, Toulouse-Lautrec, Klimt, Rodin, El Greco and Rothko. Artwork prices ranged from a Picasso at US$12.5 million to a Klimt valued at US$183 million.
In 2012, Rybolovlev acquired Modigliani's for US$118 million but later found out that the seller only received US$93.5 million.
He then discovered that although he paid US$127.5 million for , a painting of Christ by da Vinci, the actual price was only between US$75 million and US$80 million.
Rybolovlev suspected that Bouvier had concealed the true prices from him and pocketed the difference.
Bouvier was arrested in Monaco in February and is still under investigation.
