Auction bosses charged re alleged price-fixing

The former bosses of the world’s two largest auctioneers were yesterday formally charged with organising an ‘‘international conspiracy’’ to rig commissions.

Alfred Taubman, former chairman of Sotheby’s and Sir Anthony Tennant, ex-chairman of Christie’s, were formally indicted by a grand jury in New York, charged with conspiring to fix auction commission prices in the United States and elsewhere between 1993 and 1999.

But Sir Anthony would have to be extradited from the UK to face the charges, which he has denied.

The United States Justice Department claims the two auction houses engaged in a six-year conspiracy which cheated sellers using their US offices out of at least 400 million (£278m) in commission.

Prosecutors allege there was a secret pact to fix fees and commissions by swapping information on customers and agreeing to undercut each others’ offers to sellers, exploiting their control of 90% of the world’s art, jewellery and furniture sales.

If convicted Sir Anthony and Mr Taubman face up to three years in prison. They may also have to pay fines equalling twice the loss suffered by customers because of the alleged scheme.

‘‘This case will show that these individuals mastered the art of price fixing,’’ said James Griffin, the American prosecutor leading the case.

Last month an American judge approved a 537 million (£374 million) settlement of price-fixing lawsuits brought by customers of Sotheby’s and Christie’s, the cost of which the auction houses are sharing.

A former chairman and chief executive of Sotheby’s, Diana Brooks, pleaded guilty to charges of price fixing and is waiting to be sentenced at the end of Sir Anthony and Mr Taubman’s trial.

Christie’s has been co-operating with the investigation under a leniency program that could protect the auction house from prosecution if it voluntarily provides information to prosecutors.

Its former chief executive handed over a series of documents 15 months ago, starting the probe by federal authorities in America.

Christie’s refused to comment on the charges against their former chairman. A spokesman for Sotheby’s said: ‘‘Mr Taubman has consistently maintained his innocence.

As his case is now pending before the courts, Sotheby’s will have no further comment.’’

But Mr Taubman said it was Sir Anthony who had masterminded the scheme.

‘‘I am surprised and deeply disappointed by the charges made against me,’’ he said.

‘‘I am absolutely innocent. As confirmed by the lie detector test I have taken, the truth is on my side.’’