A $600M Art World Scandal Surrounded this Sutton Square Residence
This property is listed for $29,500,000 by Loy Carlos and Carrie Chiang of The Corcoran Group.
The property first made headlines in 2018, when it was listed for $39.8M by art mogul, Guy Wildenstein, reported to be selling off his real estate holdings in New York.
At the time, Wildenstein was facing up to 2 years in prison and a substantial fine for an alleged $600M in inheritance fraud. It was considered “one of the biggest tax fraud trials ever held in France”. He was cleared of all charges - twice - but its a cautionary tale of French inheritance laws.
His family business, Wildenstein & Co. was one of the most successful and influential art-dealerships of the 20th century. When his father, Daniel Wildenstein died in 2001, Guy and his brother Alec declared an inheritance of €40M.
Under French inheritance law you can be taxed up to 50% of the estate, and so they paid out €17.7M in rights and taxes with a group of marble sculptures commissioned by Queen Marie Antoinette for the Château de Rambouillet. They’re on display in the Louvre today,
In the case against him, it was alleged that Wildenstein and his brother moved millions of dollars of artwork from New York to Switzerland within days of their father’s passing in 2001. He was accused of concealing a considerable fortune, comprising priceless art, real estate holdings, funds, and race horses, reportedly worth billions "behind foreign legal structures, escaping taxes."
His lawyers argued that reporting a trust was not clearly required by French tax authorities until 2011, and the verdict was that he was not guilty. Indeed, it wasn’t until 2011 that France passed a law, (dubbed the “Wildenstein law”, no less) which granted tax authorities greater power to investigate trusts in tax havens.
The court, unable to prove that Wildenstein’s trusts were still in use after the law came into effect in 2011 and without a proper investigation of their tax havens in the Bahamas and the Channel Islands, had no “legal basis” for their case. In 2018, Wildenstein was finally cleared of all charges for the second time.
Two neighboring townhomes were combined to create this rare 33 foot wide residence on Manhattan’s Sutton Square. With a gated driveway and a lush private garden, the 5-bedroom Georgian-style townhome has spectacular East river views.
The classical interiors were designed by world-renowned designer Juan Pablo Molyneux, Notable details include a beautiful glass rotunda in the foyer and, and elegant finishes throughout, like the parquet de Versailles flooring in the great room. The oak-panelled double library overlooks the river, as does the glorious rooftop terrace with a bar for entertaining which includes a bar. The property also has a gym, sauna, and separate staff quarters on the lower level.
All photos belong to the listing agency.
