Home San Francisco Press Releases 2009 Owner of Union Square Art Gallery Charged with Fraud
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Owner of Union Square Art Gallery Charged with Fraud
Pasquale Iannetti Charged with Defrauding Customers by Knowingly Selling Counterfeit Miro Prints

U.S. Attorney’s Office August 21, 2009
  • Northern District of California (415) 436-7200

SAN FRANCISCO—The owner and operator of Paquale Iannetti Art Galleries was indicted by a federal grand jury yesterday with mail fraud and wire fraud in connection with his sale of counterfeit limited edition prints purported to be by Spanish artist Joan Miro, United States Attorney Joseph P. Russoniello announced. 

According to the indictment, Iannetti, a San Francisco resident, owned and operated the Pasquale Iannetti Art Galleries, Inc., which, until recently was located at 565 Sutter Street in San Francisco. The gallery told customers that it dealt in fine original prints and other works from the 16th century to the present. The indictment alleges that beginning no later than March 2001, and continuing through February 2008, Iannetti engaged in a scheme to defraud the gallery’s customers by claiming that certain works were original Miro limited edition prints, when in fact he knew that the pieces were counterfeit.

The indictment states that during the time that Iannetti sold the counterfeit works through his gallery, a market existed for original limited edition fine art prints by Miro. Such prints were prepared from a master impression created by the artist or under his direct supervision. The prints were thereafter produced in a limited quantity, and Miro inspected each print to ensure that it was of a quality level consistent with his intentions. Each print was approved by the artist, signed by him, and given a unique number. After production of the limited number of prints, the master impression was destroyed so as to ensure that the edition was truly limited.

According to the indictment, Iannetti acquired the counterfeit Miro prints from an unnamed source knowing or having reason to know that the prints were not original, and that they bore forged signatures and/or false numerical or other markings that made them appear to be original limited edition prints. Iannetti allegedly falsely represented the authenticity of the works to both customers, and employees, of the gallery. The indictment further alleges that, as a part of the scheme to defraud customers, Iannetti caused the gallery employees to issue “Certificates of Authenticity” to purchasers of the counterfeit Miro prints, knowing that the certificates contained material false representations about the authenticity and origin of the prints. Iannetti allegedly acquired the pieces on a consignment basis and paid the source from the proceeds when the piece sold. 

The indictment returned by the grand jury yesterday charges Iannetti with eight counts of mail fraud and seven counts of wire fraud in connection with the sales of counterfeit Miro prints.

An affidavit filed by an agent of the United States Postal Inspection Service in connection with the search warrant obtained in the same matter (case number 3 08 70080) explains that the investigation of Iannetti and Pasquale Iannetti Galleries, Inc. began in 2006, when agents from the Postal Inspection Service in Chicago, the F.B.I., and Italian and Spanish law enforcement, initiated an investigation of  an international art fraud ring. Their investigation disclosed that art dealers in several states, including California, were selling counterfeit prints purported to be by a number of 20th century artists including Miro, Picasso, Chagall, and Warhol. The affidavit stated that investigators learned that the counterfeit works were being produced in Europe and were then distributed in the United States.

The affidavit stated that Elio Bonfiglioli, an Italian citizen who was identified as a distributor of the fake prints, traveled to San Francisco in November 2007 and visited the Pasquale Iannetti Galleries, Inc. near Union Square. In December 2007, a Postal Inspector who was working undercover and posing as a potential customer, purchased what turned out to be a counterfeit Miro print from the gallery for $14,750. The affidavit explains that this particular print was found in Elio Bonfiglioli’s luggage as he passed through U.S. Customs at J.F.K. International Airport in New York City shortly before his visit to the Pasquale Iannetti Gallery in November.

In March 2008, a grand jury in Chicago returned two indictments as a result of the investigations in the Northern District of Illinois. One of the indictments named Bonfiglioli as a defendant in the case. The U.S. Attorney’s Office in Chicago is currently seeking Bonfiglioli’s extradition to the United States.

Iannetti is not in custody and the date for his initial appearance in federal court in San Francisco has not yet been scheduled. 

The maximum statutory penalty for each count of mail fraud, in violation of Title 18, United States Code, Section 1341, and for each count of wire fraud, in violation of Title 18, United States Code, Section 1343, is twenty years imprisonment, a $ 250,000 fine, and restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. 

Susan Badger is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Rayneisha Booth. The prosecution is the result of a two year investigation by the Postal Inspection Service. 

Please note, an indictment contains only allegations against an individual and, as with all defendants, Mr. Iannetti must be presumed innocent unless and until proven guilty.

Further Information:
Case #: CR 09 0850 VRW

A copy of this press release may be found on the U.S. Attorney’s Office’s website at www.usdoj.gov/usao/can.

Electronic court filings and further procedural and docket information are available at https://ecf.cand.uscourts.gov/cgi-bin/login.pl.

Judges’ calendars with schedules for upcoming court hearings can be viewed on the court’s website at www.cand.uscourts.gov.

All press inquiries to the U.S. Attorney’s Office should be directed to Jack Gillund at (415) 436-6599 or by email at Jack.Gillund@usdoj.gov.

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