Art and Museum Law Partner Quoted in Bloomberg Article

August 3, 2016

Wiggin and Dana Art and Museum Law Partner David Hall, was quoted in the Bloomberg article, "An Auction House Learns the Art of Shadow Banking," published on July 28, 2016.

The article follows Malaysian financier Jho Low who was caught up in a U.S. money-laundering investigation. The article describes an alleged scheme to launder money by pledging works of art to secure a $107 million loan, according to the U.S. Justice Department complaint.

Mr. Hall spent 10 years as a special prosecutor for the Federal Bureau of Investigation's Art Crime Team. He was quoted in the article saying, "One way to launder is to use art as a security for a loan."

Mr. Hall said in the article that the goal of money launderers is to create a separation between the ill-gotten gains and subsequent transactions.

"You can see how effective this is as a laundering scheme," Mr. Hall said. A borrower "doesn't need to repay the loan because he just sells the collateral. He ends up with the money that appears to be clean. And he can use it however he wants."

To read the full article, please click here.