Arrested for $8M art fraud

An Ettalong man has been arrested for art fraud, with losses estimated at $8 million.

Fraud and Cybercrime Squad detectives made the arrest following a protracted investigation into artwork investment fraud.

Strike Force Glasson was established in early 2009 to investigate dealings relating to a number of art galleries in Sydney's north-west following complaints of alleged investment fraud.

Police will allege numerous valuable artworks were sold to investors, with many of those investors unaware that the pieces they had purchased had also been on-sold to others, or were already the property of others.

Police alleged more than 40 investors incurred financial losses in excess of $8 million.

During the course of the investigation, more than 400 paintings were seized by police with extensive inquiries conducted to determine the legitimate ownership of those paintings.

A 64-year-old Ettalong man was arrested at Gosford Police Station on Monday, January 16.

He was charged with 77 counts of larceny as a bailee and 10 counts of Director Cheat and Defraud.

Media Release, 16 Jan 2012 NSW Police Media