Ex-Sothebys chief faces fee-fixing trial

The former boss of Sotheby’s was due to go on trial today accused of masterminding an international conspiracy with his counterpart at rivals Christie’s to rig commissions.

Alfred Taubman, who remains the controlling shareholder of Sotheby’s, is alleged to have schemed with Anthony Tennant, ex-chairman of Christie’s, to fix commission fees charged to customers of the world’s largest auction houses.

On May 3, this year the pair were indicted by a Grand Jury in New York of conspiring to fix auction commission prices in the US and elsewhere between 1993 and 1999.

The US Justice Department claims the men conspired to charge sellers using their US offices at least $400m in commission in breach of US anti-trust laws.

Prosecutors allege they exploited their control of 90% of the world’s art, jewellery and furniture sales by forming a secret pact to fix fees instead of undercutting each other’s rates, contrary to tough US anti-trust laws.

Taubman, 76, from Michigan, faces up to three years in prison and a heavy fine if convicted.

Tennant, 70, has said he does not plan to go to the US. He cannot be extradited because there is no equivalent criminal offence in Britain.

Another former Christie’s chairman, Christopher Davidge, is expected to be a key prosecution witness in the trial.

Former Sotheby’s president and chief executive Diana Brooks, who pleaded guilty last year to one count of conspiring to violate anti-trust laws, is also due to take the stand as a government witness.

Jury selection in the case is due to begin in New York’s Manhattan federal court today. The trial is expected to last for six weeks.