Former auction house chiefs sentenced - Front Page - A. Alfred Taubman, Diana D. Brooks - Brief Article

Art in America, June, 2002 by David Ebony

Sotheby's former chairman, A. Alfred Taubman, and the company's former CEO, Diana D. Brooks, were sentenced in late April for their roles in the price-fixing conspiracy that has shaken the auction world during the past several years [see "Artworld," Jan. `02]. Taubman, 78, who was convicted Dec. 5, was sentenced by federal judge George B. Daniels to one year and a day in prison. With allowances for time off for good behavior, Taubman is expected to serve only about 10 months. He was also fined $7.5 million. (In fall 2000, Sotheby's and Christie's paid $256 million each to customers who had filed a class-action suit against them. It was widely reported that Taubman used $156 million of his own money to cover Sotheby's share.)

A week after Taubman's sentencing, the same judge sentenced Brooks to six months of house arrest, a $350,000 fine and 1,000 hours of community service. While under house arrest she is to wear an electronic bracelet that monitors her movements. Brooks pleaded guilty in the case last year, but avoided serving time by cooperating with federal prosecutors in building the case against Taubman. Christie's chairman, Sir Anthony Tennant, who was also indicted in the case, did not stand trial since British law allowed him to remain in England and avoid extradition to the U.S.; Christie's former CEO, Christopher M. Davidge, was granted immunity because he had assisted federal authorities early on, turning over extensive documentation that had provided the foundation for their investigation.

Although the sentencings close one chapter in the scandal, troubles may not be over for the auction houses. According to the New York Times, antitrust officials of the European Commission issued formal complaints in mid-April, citing evidence that Christie's and Sotheby's colluded to fix commissions in European sales. The charges could result in further hefty fines for each company of up to 10 percent of annual worldwide sales.