1 00:00:02,540 --> 00:00:08,180 In this episode of American Greed, a televised art auction brings 2 00:00:08,180 --> 00:00:10,600 to the masses. I've got an opening bid at $100. 3 00:00:11,000 --> 00:00:14,720 It was like there was this whole other world taking place behind a curtain that 4 00:00:14,720 --> 00:00:16,160 I didn't even know anything about. 5 00:00:16,560 --> 00:00:22,140 But if a rare Picasso selling for $500 sounds too good to be true... I can't 6 00:00:22,140 --> 00:00:24,120 believe these pieces are going at these prices. 7 00:00:24,400 --> 00:00:25,860 It probably is. 8 00:00:26,670 --> 00:00:30,890 I would be very careful about ever wanting to give my credit card out to 9 00:00:30,890 --> 00:00:35,090 people. It's a picture -perfect scam by a real con artist. 10 00:00:35,350 --> 00:00:37,630 What could be more brazen than doing it on TV? 11 00:00:37,930 --> 00:00:40,090 One, twice, go. 12 00:00:55,370 --> 00:01:00,410 Somewhere in Southern California, more than 700 pieces of art sit piled high 13 00:01:00,410 --> 00:01:02,510 inside a top -secret warehouse. 14 00:01:03,050 --> 00:01:09,470 They appear to be signed works by Picasso, Chagall, Dali, Nero, Rembrandt, 15 00:01:09,470 --> 00:01:13,270 waiting to be sold live on the Fine Art Treasures Gallery. 16 00:01:13,810 --> 00:01:14,810 Televised auction. 17 00:01:16,740 --> 00:01:18,980 I've got a bid at $100. I've got $200. 18 00:01:19,420 --> 00:01:20,480 I've got $300. 19 00:01:20,960 --> 00:01:23,960 Their whole point was just to get the artwork on the air, get these 20 00:01:23,960 --> 00:01:27,480 on the air, and push the bids across the screen and move on to the next one as 21 00:01:27,480 --> 00:01:28,378 quick as possible. 22 00:01:28,380 --> 00:01:32,420 This next piece is called Venus Withdraws, a very, very famous image of 23 00:01:32,420 --> 00:01:36,400 Dali. He actually later on created a sculpture about this piece as well. 24 00:01:36,560 --> 00:01:41,000 Wonderful, very colorful piece. It's signed, and it's an artist's proof, 25 00:01:41,000 --> 00:01:42,420 and gentlemen, so good luck. 26 00:01:42,780 --> 00:01:46,240 Bidding starts at a fraction of the artwork's actual value. 27 00:01:46,520 --> 00:01:48,880 This should be going for ten times its amount. 28 00:01:49,140 --> 00:01:50,640 Today, it's your auction. 29 00:01:50,920 --> 00:01:55,180 Nine, ten, go and watch. Nine, fifteen. It's an opportunity for every middle 30 00:01:55,180 --> 00:02:00,340 -class art lover, not just the upper crust, to invest in their very own 31 00:02:00,340 --> 00:02:01,340 masterwork. 32 00:02:02,340 --> 00:02:04,800 Anytime you have a piece of art. 33 00:02:05,050 --> 00:02:10,810 that starts off bidding at $1 ,000 that you're being told is worth $80 ,000 on 34 00:02:10,810 --> 00:02:13,230 the open market, that's too good to be true. 35 00:02:14,130 --> 00:02:17,870 But for the nearly 10 ,000 bidders who think they're getting the deal of the 36 00:02:17,870 --> 00:02:22,710 century, their impression of Fine Art Treasures Gallery is dead wrong. 37 00:02:22,950 --> 00:02:26,990 There are a lot of people who are sitting at home in their living room 38 00:02:26,990 --> 00:02:28,930 at a fake piece of art and they don't even know it. 39 00:02:29,470 --> 00:02:33,890 And this awesome piece is going. 40 00:02:34,600 --> 00:02:36,000 Going! Go on! 41 00:02:37,620 --> 00:02:43,340 Fine Art Treasures Gallery is the magnum opus of Christine Eubanks, a serial 42 00:02:43,340 --> 00:02:45,420 entrepreneur based in Los Angeles. 43 00:02:46,600 --> 00:02:52,040 But long before the televised auction, Eubanks is just another yuppie hoping to 44 00:02:52,040 --> 00:02:53,600 make it big in showbiz. 45 00:02:54,090 --> 00:02:57,330 Everyone described her as being somebody who was fairly intelligent. 46 00:02:57,590 --> 00:03:00,090 We heard things like she had an Ivy League education. 47 00:03:00,750 --> 00:03:05,210 Eubanks grows up in Chicago, and after college, she moves to New York City to 48 00:03:05,210 --> 00:03:07,850 work for a movie studio's distribution arm. 49 00:03:08,130 --> 00:03:11,810 She was always a competitive salesperson, at least the way she 50 00:03:11,810 --> 00:03:17,390 me. She loved listening to the song Brick House in her car before she'd go 51 00:03:17,390 --> 00:03:19,510 sales meeting at that job. 52 00:03:20,240 --> 00:03:24,840 The competitive saleswoman soon moved to Los Angeles, where she makes a turn 53 00:03:24,840 --> 00:03:27,080 from the movie business to fine art. 54 00:03:27,400 --> 00:03:31,540 Christine would engage in fine art photography as a hobby, and she would 55 00:03:31,540 --> 00:03:34,900 other fine art photographers and learn about other techniques and skills. 56 00:03:35,320 --> 00:03:40,160 And somewhere down the line, she decided, okay, then let's make a 57 00:03:40,160 --> 00:03:41,160 of it. 58 00:03:43,350 --> 00:03:47,650 Former Assistant U .S. Attorney David Willingham says she and her husband, 59 00:03:47,790 --> 00:03:53,270 Gerald Sullivan, opened Finer Image Editions, an art reproduction studio in 60 00:03:53,270 --> 00:03:57,810 1995. She wore the pants in the family. She really controlled the business, and 61 00:03:57,810 --> 00:04:02,810 she really was the one in charge of every aspect of it. And he, Mr. 62 00:04:03,050 --> 00:04:06,470 ran the details, ran the accounts, handled the transactions. 63 00:04:07,290 --> 00:04:11,790 The business sells reproduced artwork to clients like Princess Cruise Lines. 64 00:04:11,830 --> 00:04:17,430 Princess Cruise Lines bought art from Finer Image Edition and sold them to 65 00:04:17,430 --> 00:04:20,930 people who were just, you know, having fun with themselves or the families on 66 00:04:20,930 --> 00:04:25,850 cruises. These are big accounts, and Eubanks is thrilled with the demand for 67 00:04:25,850 --> 00:04:30,290 reproductions, demand that's becoming easier to meet thanks to new technology 68 00:04:30,290 --> 00:04:33,030 like the state -of -the -art Giclay printer. 69 00:04:36,240 --> 00:04:40,960 By 2000, Eubanks' finer image editions is one of only a handful of businesses 70 00:04:40,960 --> 00:04:43,120 using the giclee to reprint artwork. 71 00:04:43,520 --> 00:04:47,920 And Eubanks markets it to the hilt, seeking artists who would like to 72 00:04:47,920 --> 00:04:48,920 their work. 73 00:04:49,020 --> 00:04:54,060 Finer Image had run an ad in the Art Business News, which is a very big 74 00:04:54,060 --> 00:04:59,840 for the industry, about this new process and about how they were printing this 75 00:04:59,840 --> 00:05:02,740 new giclee, lifelike images. 76 00:05:03,290 --> 00:05:07,930 The Chiclay technology catches the attention of 49 -year -old artist John O 77 00:05:07,930 --> 00:05:11,730 'Brien, a rising painter who dreams of becoming a superstar. 78 00:05:12,310 --> 00:05:17,350 This used to be John's art studio, where he spent seven days a week painting. 79 00:05:18,010 --> 00:05:22,970 O 'Brien is having modest success with his Irish landscapes and Parisian street 80 00:05:22,970 --> 00:05:27,810 seeds, and the City of Light holds special significance for him and his 81 00:05:27,890 --> 00:05:33,900 Martha. I met him in the summer of 1989 in Paris on a houseboat underneath the 82 00:05:33,900 --> 00:05:39,200 Eiffel Tower, which is one of those moments that you're never expecting, and 83 00:05:39,200 --> 00:05:41,360 wasn't either. It was just magical. 84 00:05:43,460 --> 00:05:48,260 Martha, a ballet instructor, and her new husband barely eke out a living. 85 00:05:48,500 --> 00:05:52,440 We were living not month to month, but it was tight. You know, we were living 86 00:05:52,440 --> 00:05:53,700 comfortable, but it was tight. 87 00:05:54,410 --> 00:05:59,050 O 'Brien soon catches a break when he lands an agent, and it's not long before 88 00:05:59,050 --> 00:06:01,090 licensing companies come calling. 89 00:06:01,650 --> 00:06:07,610 Soon his work begins to appear on puzzles, wall planks, even oven mitts. 90 00:06:07,610 --> 00:06:10,930 started picking up, and all of a sudden John was making money, and he was 91 00:06:10,930 --> 00:06:14,450 getting recognized, and his artwork was getting into some very prominent homes. 92 00:06:14,810 --> 00:06:19,670 Poster companies also approach O 'Brien, but he's deathly afraid of losing 93 00:06:19,670 --> 00:06:20,670 control. 94 00:06:21,100 --> 00:06:25,900 The puzzles he saw as a wonderful way to get his name out there and to get 95 00:06:25,900 --> 00:06:29,560 people interested in his work and then maybe go to the website to buy an 96 00:06:29,560 --> 00:06:32,060 original painting or an authentic reproduction. 97 00:06:32,660 --> 00:06:35,700 But he didn't like the idea of his work being cheapened. 98 00:06:36,740 --> 00:06:41,280 Eubanks knows that control is everything to an artist, and O 'Brien is no 99 00:06:41,280 --> 00:06:44,560 exception. So she draws up an irresistible offer. 100 00:06:44,960 --> 00:06:49,660 O 'Brien will custom order reproductions directly from finer image editions, and 101 00:06:49,660 --> 00:06:52,760 Christine Eubanks will faithfully manufacture them. 102 00:06:53,240 --> 00:06:57,600 The light had come on, that this was now what we had been waiting for, a sign 103 00:06:57,600 --> 00:07:00,140 that things were going to turn around, that life was good. 104 00:07:00,620 --> 00:07:05,920 Eubanks preys on O 'Brien's artistic sensibility and gains his trust by 105 00:07:06,040 --> 00:07:09,340 quality is most important in the reproduction process. 106 00:07:09,740 --> 00:07:12,820 All he has to do is hand over an original. 107 00:07:13,420 --> 00:07:17,380 And then this is just a sample that they showed him on a little piece of canvas 108 00:07:17,380 --> 00:07:23,800 to get his approval of how brilliant the color is, what it would feel like, the 109 00:07:23,800 --> 00:07:28,700 thickness of the canvas, the quality of the canvas. He was blown away because 110 00:07:28,700 --> 00:07:32,300 his work is so detailed and he's all about color. 111 00:07:32,580 --> 00:07:36,140 And he couldn't believe that the colors just jumped right out so brilliantly. 112 00:07:36,780 --> 00:07:38,340 O 'Brien takes the deal. 113 00:07:38,800 --> 00:07:43,600 And Christine Eubanks now has unlimited access to John O 'Brien's original work, 114 00:07:43,700 --> 00:07:47,080 and she's seeing dollar signs in the reproductions. 115 00:07:47,820 --> 00:07:53,540 Next on American Greed, as O 'Brien's popularity grows, see how Eubanks uses 116 00:07:53,540 --> 00:07:56,780 copying skills to capitalize on his talents. 117 00:07:57,160 --> 00:08:01,100 The only question that we both have was, you don't pull somebody to try to pass 118 00:08:01,100 --> 00:08:02,100 it off as an original. 119 00:08:10,920 --> 00:08:15,960 In 2000, Christine Eubanks has struck gold in the world of art reproduction. 120 00:08:16,420 --> 00:08:20,480 Her company, Finer Image Editions, cuts exclusive reproduction deals with 121 00:08:20,480 --> 00:08:22,680 artists like painter John O 'Brien. 122 00:08:23,290 --> 00:08:27,790 But now Eubanks wants to take it to the next level and mass produce authorized 123 00:08:27,790 --> 00:08:31,350 copies of O 'Brien's original work that she would sell herself. 124 00:08:31,810 --> 00:08:36,970 Instead of just custom ordering for John, they wanted to be on the other end 125 00:08:36,970 --> 00:08:42,549 it, which is let us go ahead and mass produce your work and we'll sell it and 126 00:08:42,549 --> 00:08:47,610 we'll pay you a royalty or a signature fee for every piece that you sign for 127 00:08:47,950 --> 00:08:52,450 Eubanks promises O 'Brien will join the big leagues and be in the company of 128 00:08:52,450 --> 00:08:55,370 millionaire artists like Thomas Kinkade. 129 00:08:55,630 --> 00:09:02,130 That was like, okay, here's our ticket into that circle and get his name out 130 00:09:02,130 --> 00:09:07,390 there big time, get full page ads at Art Business News and attract the collector 131 00:09:07,390 --> 00:09:11,670 who would pay $60 ,000 for one of John's paintings. 132 00:09:12,090 --> 00:09:17,430 But the initial euphoria fades when over the next year, Eubanks' promises prove 133 00:09:17,430 --> 00:09:22,890 worthless. I found these old letters that were written by Christy Eubanks. 134 00:09:23,310 --> 00:09:27,490 Just to all artists, together we will be the best ever. 135 00:09:28,650 --> 00:09:30,250 We never saw a penny that year. 136 00:09:31,410 --> 00:09:36,790 Far from joining the big leagues, the O 'Briens struggle to make ends meet. And 137 00:09:36,790 --> 00:09:39,450 they decide to sell some of John's pieces on eBay. 138 00:09:39,670 --> 00:09:41,170 But when they log in... 139 00:09:41,550 --> 00:09:43,010 They can't believe what they see. 140 00:09:43,470 --> 00:09:47,630 And so then we would go to eBay just to see what other artists were doing, to 141 00:09:47,630 --> 00:09:51,230 see what was on there, and that's when we discovered that somebody else had 142 00:09:51,230 --> 00:09:54,090 already put one of his pieces of artwork up for sale on eBay. 143 00:09:54,490 --> 00:09:57,990 And then there became more and more of them kept popping up. 144 00:09:58,450 --> 00:09:59,470 Posters, prints. 145 00:09:59,830 --> 00:10:05,290 To their horror, unauthorized knockoffs of O 'Brien's work have flooded the 146 00:10:05,290 --> 00:10:07,230 market. I think we were both just in shock. 147 00:10:07,910 --> 00:10:12,130 I mean, just totally, like, how did this happen? And then it just started 148 00:10:12,130 --> 00:10:13,390 happening on a regular basis. 149 00:10:13,910 --> 00:10:17,050 The O 'Briens ordered a piece to try to get some answers. 150 00:10:17,550 --> 00:10:20,750 And then we got ourselves a nice print of John's work. 151 00:10:21,070 --> 00:10:27,790 What was the shocker was the certificate of authenticity signed 152 00:10:27,790 --> 00:10:31,190 not by the artist, which is what the agreement has always been, that John 153 00:10:31,190 --> 00:10:35,770 sign each one approving the piece and then also signing the jaclet, but then 154 00:10:35,770 --> 00:10:36,770 forged signature. 155 00:10:37,320 --> 00:10:38,320 on the piece itself. 156 00:10:38,420 --> 00:10:42,540 The O 'Briens know there's only one person who could be responsible for the 157 00:10:42,540 --> 00:10:47,220 forgeries because only one person had access to the originals, Christine 158 00:10:47,220 --> 00:10:48,220 Eubanks. 159 00:10:48,720 --> 00:10:51,140 It was such easy money. It's just like counterfeiting money. 160 00:10:51,360 --> 00:10:52,360 I mean, you've got a printer. 161 00:10:52,560 --> 00:10:55,080 You type in 100 and push the button print. 162 00:10:55,380 --> 00:10:57,100 You've got 100 images. 163 00:10:58,800 --> 00:11:02,560 Unfortunately, he trusted in the wrong person. Christine Eubanks fooled him 164 00:11:02,560 --> 00:11:06,110 she fooled everybody else and took those images and... stole them in order to 165 00:11:06,110 --> 00:11:07,110 sell them on the market. 166 00:11:08,270 --> 00:11:11,730 But the damage is more widespread than the O 'Briens realize. 167 00:11:12,470 --> 00:11:17,070 Unbeknownst to them, Eubanks is selling unauthorized copies of O 'Brien's work 168 00:11:17,070 --> 00:11:20,230 to corporate clients like Princess Cruise Lines. 169 00:11:21,030 --> 00:11:25,950 O 'Brien soon cuts ties with Eubanks, and he struggles to regain control of 170 00:11:25,950 --> 00:11:27,870 work and support his family of four. 171 00:11:29,490 --> 00:11:34,410 Martha O 'Brien's father comes to their aid and invests in a pricey Giclay 172 00:11:34,410 --> 00:11:38,590 printer. John realized that he was going to have to do it all himself, that he 173 00:11:38,590 --> 00:11:41,850 wasn't going to go into business with anybody else. He wasn't going to send 174 00:11:41,850 --> 00:11:45,170 transparencies out to anybody else. He was going to do everything in -house. 175 00:11:46,110 --> 00:11:51,410 But despite his best efforts, O 'Brien's biggest fear has already come true. 176 00:11:51,950 --> 00:11:52,950 He was furious. 177 00:11:53,930 --> 00:11:57,150 And he felt really, I don't want to say stupid, but... 178 00:11:57,720 --> 00:12:02,200 Why didn't we try harder to prevent this from happening? That question of what 179 00:12:02,200 --> 00:12:07,240 did we do wrong that this could happen, because that was his biggest fear, is to 180 00:12:07,240 --> 00:12:08,240 lose control of that. 181 00:12:08,440 --> 00:12:13,000 So far, Christine Eubanks has successfully scammed artist John O 182 00:12:13,320 --> 00:12:17,400 But she knows she'll make millions more if she can somehow con the art buyers 183 00:12:17,400 --> 00:12:18,400 themselves. 184 00:12:24,080 --> 00:12:28,940 In 2002, Eubanks and her husband, Gerald Sullivan, meet a fast -talking 185 00:12:28,940 --> 00:12:32,780 auctioneer named Jimmy Mobley, an ex -con with a drug problem. 186 00:12:33,540 --> 00:12:37,620 He'd had a lot of exposure to art dealers prior to that and, you know, not 187 00:12:37,620 --> 00:12:39,420 the most savory kind, I guess. 188 00:12:39,680 --> 00:12:44,940 Together, they hatch a diabolical plan to sell massive quantities of bogus and 189 00:12:44,940 --> 00:12:47,460 unauthorized art on live TV. 190 00:12:48,000 --> 00:12:50,140 He introduced her to a lot of these people. 191 00:12:50,600 --> 00:12:54,820 who would sell art and help her get it reproduced, for example. 192 00:12:55,340 --> 00:12:58,420 In exchange for that, and also for being the auctioneer, you're supposed to get 193 00:12:58,420 --> 00:13:00,480 a cut of what came in through the television show. 194 00:13:00,940 --> 00:13:06,020 They give the show a seemingly legitimate name, Fine Art Treasures 195 00:13:06,480 --> 00:13:10,480 And they know that broadcasting on the Dish network and DirecTV will make the 196 00:13:10,480 --> 00:13:12,120 show seem even more incredible. 197 00:13:13,020 --> 00:13:15,020 When you do something on TV... 198 00:13:15,310 --> 00:13:18,470 People want to believe, and in fact they do believe that it's real. So there's 199 00:13:18,470 --> 00:13:22,590 no other better way to hide your scam other than doing it out and in the open. 200 00:13:22,930 --> 00:13:28,190 The stakes are high for Christine Eubanks, who spends at least $50 ,000 to 201 00:13:28,190 --> 00:13:31,330 produce 11 hours of airtime every weekend. 202 00:13:31,950 --> 00:13:37,090 The business model was, whether it's just a dozen people watching or 2 ,000 203 00:13:37,090 --> 00:13:41,750 people watching, the real value of the show was, are we able to sell? 204 00:13:42,830 --> 00:13:44,430 They're making tons of money. 205 00:13:45,020 --> 00:13:47,800 But they had to put that money back in the scheme to keep it going. 206 00:13:48,560 --> 00:13:52,780 Next on American Greed. We're going to start the bidding right now. Fine Art 207 00:13:52,780 --> 00:13:56,960 Treasures Gallery is a tour de force, but buyer beware. 208 00:13:57,480 --> 00:13:59,800 $3 .55 I have going once. 209 00:14:00,080 --> 00:14:02,620 $3 .55 going twice. 210 00:14:03,160 --> 00:14:04,360 Sold at $3 .55. 211 00:14:04,620 --> 00:14:06,800 This is really unbelievable. 212 00:14:16,520 --> 00:14:22,280 In September 2002, Christine Eubanks broadcasts her first episode of Fine Art 213 00:14:22,280 --> 00:14:23,280 Treasures Gallery. 214 00:14:23,640 --> 00:14:28,360 Sexy women and silver -tongued auctioneers move the merchandise, but 215 00:14:28,360 --> 00:14:30,720 closely. There are no art experts. 216 00:14:31,240 --> 00:14:35,160 You may remember Norman Rockwell from his Saturday Night Evening Post magazine 217 00:14:35,160 --> 00:14:40,220 covers. Viewers are led to believe that the lots are authentic artwork by the 218 00:14:40,220 --> 00:14:44,240 original artists, which they say come from estate liquidation sales. 219 00:14:45,630 --> 00:14:50,190 Amazingly, Fine Art Treasures Gallery even sells multiple prints from the same 220 00:14:50,190 --> 00:14:53,150 series of very rare, limited editions. 221 00:14:53,790 --> 00:14:59,950 The chances of a legitimate dealer or any dealer having two actual and 222 00:14:59,950 --> 00:15:05,090 rare pieces of the same series slim to none. That just doesn't happen in the 223 00:15:05,090 --> 00:15:05,989 real world. 224 00:15:05,990 --> 00:15:09,430 Despite these red flags, the calls come pouring in. 225 00:15:09,650 --> 00:15:12,090 It's music to Christine Eubank's ears. 226 00:15:12,730 --> 00:15:17,410 Though sometimes even the calls are fake, a little trick devised by 227 00:15:17,410 --> 00:15:18,410 Jimmy Mobley. 228 00:15:18,790 --> 00:15:22,970 Mr. Mobley would use his cell phone and he would hit the ringing sound near a 229 00:15:22,970 --> 00:15:26,650 mic so that it would sound like people were calling in the show. I'd love to 230 00:15:26,650 --> 00:15:27,650 the phone ring again. 231 00:15:28,170 --> 00:15:29,250 Anybody out there? 232 00:15:29,680 --> 00:15:31,640 And there's another funny thing about the auction. 233 00:15:32,380 --> 00:15:33,380 Everyone's a winner. 234 00:15:33,520 --> 00:15:37,440 If they had two normal people bidding, they would tell both of them that they 235 00:15:37,440 --> 00:15:41,620 actually won the auction and basically print off another piece in order to sell 236 00:15:41,620 --> 00:15:42,620 two pieces. 237 00:15:42,640 --> 00:15:46,960 Congratulations to you on that. Once a bidder's payment is processed, Fine Art 238 00:15:46,960 --> 00:15:48,580 Treasures ships the merchandise. 239 00:15:49,180 --> 00:15:52,420 You had people who were just completely unsophisticated in their knowledge of 240 00:15:52,420 --> 00:15:56,480 the art world getting what should have been an $80 ,000 piece of artwork 241 00:15:56,480 --> 00:15:58,140 to them essentially in a cardboard box. 242 00:16:00,200 --> 00:16:05,100 While Fine Art Treasures Gallery takes off, John and Martha O 'Brien are still 243 00:16:05,100 --> 00:16:08,140 battling Christine Eubanks to get the money they're owed. 244 00:16:09,800 --> 00:16:13,900 But the couple soon learns they have an even more desperate fight on their 245 00:16:13,900 --> 00:16:14,900 hands. 246 00:16:15,560 --> 00:16:20,460 He started getting headaches, really bad headaches. So he was having a hard time 247 00:16:20,460 --> 00:16:24,880 painting. And so he would go to doctors, and the doctors would say things like, 248 00:16:24,900 --> 00:16:26,040 well, it's eye strain. 249 00:16:27,210 --> 00:16:32,350 In April 2004, John O 'Brien's doctor tells the O 'Briens the devastating 250 00:16:33,150 --> 00:16:34,190 It's melanoma. 251 00:16:34,550 --> 00:16:35,670 He has cancer. 252 00:16:36,810 --> 00:16:40,870 They finally had a complete body scan, and we found that it metastasized 253 00:16:40,870 --> 00:16:42,910 everywhere in his body, so it was terminal. 254 00:16:44,650 --> 00:16:46,530 Everything just came to a screeching halt. 255 00:16:46,950 --> 00:16:48,490 At this point, he had no agent. 256 00:16:48,790 --> 00:16:54,030 We had the licensing that was ongoing, so we had the royalty checks, but really 257 00:16:54,030 --> 00:16:56,050 all we were doing was just fighting for his life. 258 00:16:57,550 --> 00:17:01,970 John O 'Brien succumbs to cancer just six months after his diagnosis. 259 00:17:02,370 --> 00:17:06,109 He dies the very same day as his daughter's sixth birthday. 260 00:17:06,810 --> 00:17:13,290 I remember just lying next to him in our bed and holding his hand and letting 261 00:17:13,290 --> 00:17:14,650 him know that it was okay to go. 262 00:17:14,990 --> 00:17:20,150 Because I knew that he was fighting really, really hard. And he died shortly 263 00:17:20,150 --> 00:17:21,150 after that. 264 00:17:24,810 --> 00:17:30,610 And as Martha O 'Brien suffers the greatest loss of her life, Christine 265 00:17:30,610 --> 00:17:32,270 is just raking it in. 266 00:17:32,670 --> 00:17:33,810 Sold! Sold! 267 00:17:34,130 --> 00:17:40,130 Sold! Fine Art Treasures Gallery grosses between $100 ,000 and $250 ,000 each 268 00:17:40,130 --> 00:17:44,050 broadcast. But Eubanks and her husband don't spend lavishly. 269 00:17:44,250 --> 00:17:47,950 Rather, they live in a modest ranch -style home in the low -key Los Angeles 270 00:17:47,950 --> 00:17:49,910 suburb of La Cunada Pool Bridge. 271 00:17:51,440 --> 00:17:56,560 In fact, Eubanks has to work so hard to keep the scam going that the volume of 272 00:17:56,560 --> 00:18:01,480 business is too much for her to handle. So she hires Rona Lopez as her new 273 00:18:01,480 --> 00:18:03,180 office operations manager. 274 00:18:03,620 --> 00:18:08,780 I felt rejuvenated being in there, like, wow, this is a real art place and a 275 00:18:08,780 --> 00:18:12,100 real studio, and there are all these people working. 276 00:18:12,640 --> 00:18:16,940 It's not long before Lopez is producing the televised auction. 277 00:18:17,800 --> 00:18:21,800 She organizes the artwork and handles customer complaints. 278 00:18:22,380 --> 00:18:23,640 They'd say, oh, it was late. 279 00:18:23,860 --> 00:18:28,640 Oh, the frame was chipped. Explain to me the certificate of authenticity, or I 280 00:18:28,640 --> 00:18:29,539 refuse delivery. 281 00:18:29,540 --> 00:18:34,420 A good portion of what we did in the office was trying to resolve these 282 00:18:34,880 --> 00:18:40,080 Christine Eubanks, a true master of spin, paints some pretty artful 283 00:18:40,080 --> 00:18:41,080 explanations. 284 00:18:41,470 --> 00:18:46,670 Someone had claimed that they received a Chagall, and Chagall had misspelled his 285 00:18:46,670 --> 00:18:50,890 name. They immediately called back to Fine Art Treasures Gallery asking, hey, 286 00:18:51,030 --> 00:18:55,490 Chagall misspelled his name, and they had convinced this victim. That happens 287 00:18:55,490 --> 00:19:00,010 once in a while with the artist, and you actually have a more rare item than you 288 00:19:00,010 --> 00:19:03,410 had before, and your deal was even a better deal than you actually got 289 00:19:03,410 --> 00:19:07,930 only a few pieces are there out there where they misspelled their own names, 290 00:19:07,930 --> 00:19:08,990 the person bought it. 291 00:19:09,210 --> 00:19:14,190 Though business is booming, Customer service is becoming a real thorn in 292 00:19:14,190 --> 00:19:15,190 Eubank's side. 293 00:19:15,470 --> 00:19:19,210 She would always tell me that she was barely making a profit. And I took her 294 00:19:19,210 --> 00:19:23,070 word for it that, yeah, this is an expensive business. She would say, this 295 00:19:23,070 --> 00:19:25,910 why I have to fight very hard these credit card complaints. 296 00:19:26,510 --> 00:19:30,890 And fight she did, especially when customers would come to the office 297 00:19:30,890 --> 00:19:31,890 for a refund. 298 00:19:32,330 --> 00:19:37,170 In one case, she grabbed one person and threw them out of the business. In 299 00:19:37,170 --> 00:19:42,070 another instance, the man turned around and she kicked him in the rear. All of 300 00:19:42,070 --> 00:19:47,630 this sort of fit into what we were hearing, that she was very aggressive. 301 00:19:47,970 --> 00:19:51,310 One of our victims, he tried to return some art to the premises. 302 00:19:51,630 --> 00:19:55,690 Christine Eubanks simply locked him out, shut the door on him, and wouldn't take 303 00:19:55,690 --> 00:19:56,690 the art back. 304 00:19:58,030 --> 00:20:03,870 In late 2004, Special Agent Christopher Calarco with the FBI's newly created art 305 00:20:03,870 --> 00:20:08,130 crime team gets several calls about Fine Art Treasures Gallery. 306 00:20:08,530 --> 00:20:12,190 A couple people had complained that they had bought a piece of art for a couple 307 00:20:12,190 --> 00:20:15,330 thousand dollars and then later learned that it was fake. 308 00:20:15,570 --> 00:20:21,030 Agent Calarco also learns that Fine Art Treasures Gallery reaches more than 25 309 00:20:21,030 --> 00:20:23,330 million households across the country. 310 00:20:23,670 --> 00:20:29,760 There was a lot of... Fake art that was circulating in the art market. It wasn't 311 00:20:29,760 --> 00:20:31,780 like it was something I'd never heard before. 312 00:20:32,060 --> 00:20:36,340 But this was the first time I'd heard about a TV show that was selling the 313 00:20:41,180 --> 00:20:46,080 Calarco knows that every weekend that goes by, hundreds of unsuspecting people 314 00:20:46,080 --> 00:20:48,720 could be victimized in their very own living rooms. 315 00:20:50,360 --> 00:20:55,240 Coming up, the feds tune in to Fine Art Treasures Gallery and questions emerge. 316 00:20:55,800 --> 00:20:59,340 Is this a $2 million fraud, $10 million fraud? 317 00:20:59,540 --> 00:21:01,540 What are we dealing with here? 318 00:21:09,280 --> 00:21:15,920 By late 2004, the televised art auction Fine Art Treasures Gallery has been on 319 00:21:15,920 --> 00:21:17,220 the air for more than a year. 320 00:21:17,740 --> 00:21:21,640 It's bringing in millions of dollars for its owner, Christine Eubanks. 321 00:21:22,060 --> 00:21:27,100 But FBI Special Agent Christopher Calarco believes the auction is nothing 322 00:21:27,100 --> 00:21:31,660 than an infomercial for fraudulent art. And he launches an investigation. 323 00:21:32,320 --> 00:21:37,040 When I started kind of getting an idea of the potential scope of the fraud and 324 00:21:37,040 --> 00:21:40,740 how many victims and how much loss there could be, the case took on a sense of 325 00:21:40,740 --> 00:21:44,900 urgency. Agent Calarco does some digging, and he finds that the Better 326 00:21:44,900 --> 00:21:49,140 Bureau has given Fine Art Treasures Gallery an F rating because of customer 327 00:21:49,140 --> 00:21:54,300 complaints. And when he finally sees the show... We were blown away at what we 328 00:21:54,300 --> 00:21:54,979 were seeing. 329 00:21:54,980 --> 00:22:00,160 We are now moving into our Marc Chagall segment. The way the auction looked. 330 00:22:00,910 --> 00:22:01,990 It didn't feel right. 331 00:22:02,190 --> 00:22:07,530 He loved the circus. He loved lovers. The way the auctioneer was calling out 332 00:22:07,530 --> 00:22:11,370 bid. Well, 200 I have. There seemed to be something going on. It didn't seem 333 00:22:11,370 --> 00:22:16,670 legitimate. Sally. 300. Sally also. Thank you. You're watching it, and it 334 00:22:16,670 --> 00:22:22,310 felt grimy, dirty. I would be very careful about ever wanting to give my 335 00:22:22,310 --> 00:22:23,890 card up to these people. 336 00:22:24,270 --> 00:22:27,570 401 going once. 401 going twice. 337 00:22:28,390 --> 00:22:29,390 So. 338 00:22:29,759 --> 00:22:34,500 Agent Calarco's first call is to Detective Don Harisik with the Los 339 00:22:34,500 --> 00:22:35,500 Police Department. 340 00:22:35,760 --> 00:22:41,040 I am the art cop for the city of L .A. Detective Harisik has been working art 341 00:22:41,040 --> 00:22:46,480 fraud cases for more than 20 years, and Fine Art Treasure Gallery is already on 342 00:22:46,480 --> 00:22:47,459 his radar. 343 00:22:47,460 --> 00:22:54,100 I thought it was hokey, but I could see its potential for grabbing an uninformed 344 00:22:54,100 --> 00:22:55,420 buyer out there. 345 00:22:56,030 --> 00:23:01,970 to give them a taste of owning something that may have been signed by the hand 346 00:23:01,970 --> 00:23:03,710 of a modern -day master. 347 00:23:04,170 --> 00:23:08,970 Detective Harizic knows that the intent to defraud can be difficult to prove, so 348 00:23:08,970 --> 00:23:11,930 the team makes undercover buys on the air. 349 00:23:12,270 --> 00:23:16,090 We need to know more than somebody was sold a fake artwork. We need to be able 350 00:23:16,090 --> 00:23:19,830 to show that this business is consciously doing that. They aren't just 351 00:23:19,830 --> 00:23:23,270 something from a supplier, and they don't know anything about the supplier, 352 00:23:23,270 --> 00:23:24,390 that they're just a middle person. 353 00:23:26,060 --> 00:23:30,160 Well, if someone says this was hand -signed, everyone's going to assume that 354 00:23:30,160 --> 00:23:33,060 was hand -signed by the artist. But, you know, someone could always fall back on 355 00:23:33,060 --> 00:23:36,980 the fact that, oh, we didn't say it was signed by Picasso or Chagall. We would 356 00:23:36,980 --> 00:23:41,140 ask questions like, did Picasso really sign that? Yes, Picasso signed the 357 00:23:41,140 --> 00:23:45,000 painting. So clarifying those type of misrepresentations, because people can 358 00:23:45,000 --> 00:23:48,700 kind of wiggle around using words to protect themselves. 359 00:23:53,990 --> 00:23:58,350 Detective Hristic then takes the pieces to experts like Brentwood gallerist 360 00:23:58,350 --> 00:23:59,650 Leslie Sachs. 361 00:24:00,130 --> 00:24:04,130 Sachs has been identifying fakes for Hristic for 15 years. 362 00:24:04,570 --> 00:24:10,930 This is an example of an image that was offered to me of a Picasso oil, and I 363 00:24:10,930 --> 00:24:16,370 looked at the photograph in the book, matched up the details exactly, and came 364 00:24:16,370 --> 00:24:21,670 to a determination that some of the details were not exactly corresponding. 365 00:24:26,510 --> 00:24:32,450 The problematic work has a full stop between the two and the five in the 366 00:24:32,610 --> 00:24:37,430 whereas here it's not visible as a separation. 367 00:24:40,230 --> 00:24:44,230 Investigators know they're dealing with a genuine fraud, but they don't know 368 00:24:44,230 --> 00:24:45,230 who's running the show. 369 00:24:46,650 --> 00:24:52,630 So Agent Calarco goes undercover to Canvas Spinar Treasures' Van Nuys 370 00:24:54,030 --> 00:24:57,710 It's a shrewd investigative move that really pays off. 371 00:24:59,170 --> 00:25:02,550 I was doing some poking around at the businesses. 372 00:25:04,790 --> 00:25:10,430 I was just in the area, walking around, talking to some of the employees, just 373 00:25:10,430 --> 00:25:14,890 acting like I was looking for another address and chatting them up about the 374 00:25:14,890 --> 00:25:20,810 business. And at one point, I actually bumped into Christine Eubanks. 375 00:25:22,120 --> 00:25:27,600 It was in the warehouse, standing over what appeared to be some type of print. 376 00:25:29,080 --> 00:25:33,100 I was asking her for directions, and really I was looking around to see kind 377 00:25:33,100 --> 00:25:34,100 what I could see. 378 00:25:35,220 --> 00:25:38,240 It looked like she may have been signing something at the bottom of the print. 379 00:25:39,880 --> 00:25:43,120 It's one thing to have the word of people who were otherwise involved in 380 00:25:43,120 --> 00:25:46,220 game, but it's another thing to have the investigating agent just walk in and 381 00:25:46,220 --> 00:25:47,220 watch her do it herself. 382 00:25:48,400 --> 00:25:53,720 And the team's findings are confirmed when they get a tip from an insider, a 383 00:25:53,720 --> 00:25:56,020 bookkeeper at Fine Art Treasures Gallery. 384 00:25:56,440 --> 00:26:00,740 She told us everything we needed to know about how the fake scheme worked 385 00:26:00,740 --> 00:26:05,240 internally. The fact that they were buying fake art from several places 386 00:26:05,240 --> 00:26:06,240 the country. 387 00:26:06,670 --> 00:26:10,070 That they were also printing off large amounts of fake art that they would then 388 00:26:10,070 --> 00:26:13,530 ship to the TV studios where they would then sell them live at the auction. 389 00:26:13,750 --> 00:26:15,350 I've got an opening bid at $1 ,000. 390 00:26:15,670 --> 00:26:20,050 And while investigators race to gather enough evidence to make the case, the 391 00:26:20,050 --> 00:26:21,050 show goes on. 392 00:26:21,150 --> 00:26:22,210 Okay, here we go. 393 00:26:22,710 --> 00:26:26,630 Dozens of fake Picassos, Chagalls, and Dollys hit the airwaves. 394 00:26:26,950 --> 00:26:28,350 Some people want this piece. 395 00:26:28,610 --> 00:26:34,330 And the prices keep going up. I am up to $4 ,500 on a piece that would sell in a 396 00:26:34,330 --> 00:26:38,920 gallery for $1 ,000. and thousands and thousands of dollars more because it's 397 00:26:38,920 --> 00:26:42,920 pencil signed. And with each broadcast, more bidders fall victim. 398 00:26:43,260 --> 00:26:47,440 Like Myron Tempchin, a successful engineer and art lover. 399 00:26:47,800 --> 00:26:53,260 We were in a hotel and we're watching the TV and here comes this art auction. 400 00:26:53,460 --> 00:26:56,840 There isn't a lot around these days except people. With its artful 401 00:26:57,560 --> 00:27:02,520 It's easy to see how even savvy collectors like Timption might get 402 00:27:02,520 --> 00:27:06,960 a bidding sequence like this. Ladies and gentlemen, I think you might want to 403 00:27:06,960 --> 00:27:07,960 get in on the bidding. 404 00:27:08,120 --> 00:27:09,980 A hand -signed Picasso piece. 405 00:27:10,220 --> 00:27:14,680 Here comes all of these Picassos, the signed lithos, and so we start. 406 00:27:15,000 --> 00:27:18,420 Just thinking, well, maybe we should bid and see what happens. 407 00:27:18,820 --> 00:27:22,040 You don't want to pass this up. This is like money in the bank. 408 00:27:22,240 --> 00:27:25,200 The dollars are going up and the dollars are going up. 409 00:27:25,560 --> 00:27:26,279 $5 ,200. 410 00:27:26,280 --> 00:27:27,219 $5 ,300. 411 00:27:27,220 --> 00:27:28,079 $5 ,400. 412 00:27:28,080 --> 00:27:29,240 I've got $6 ,000. 413 00:27:29,640 --> 00:27:31,380 The clock is running out. 414 00:27:31,600 --> 00:27:33,000 You want to let it go for $6 ,000? 415 00:27:33,320 --> 00:27:34,320 Then we'll let it go. 416 00:27:34,440 --> 00:27:36,920 She says, do you want to put in one final bid? 417 00:27:37,200 --> 00:27:38,200 Ten seconds to go. 418 00:27:38,400 --> 00:27:40,280 And you say yes. $6 ,000 going twice. 419 00:27:41,120 --> 00:27:44,340 Sold for $6 ,000. Wow, that is just fabulous. 420 00:27:44,920 --> 00:27:48,800 Congratulations on that once -in -a -lifetime win. I won this bid, and I 421 00:27:48,820 --> 00:27:52,240 let me just make sure I understand what this is. 422 00:27:52,910 --> 00:27:59,370 This is a legitimate lithograph. Yes, it's signed by Picasso himself. 423 00:27:59,630 --> 00:28:02,750 Yes, it's an original signature from Picasso. 424 00:28:03,090 --> 00:28:09,770 Yes, there's a certificate of authenticity from a recognized art 425 00:28:09,910 --> 00:28:16,210 Yes. Next on American Greed, Myron Temption wins the bid and Christine 426 00:28:16,210 --> 00:28:17,450 claims another victim. 427 00:28:17,690 --> 00:28:18,810 And then I ask. 428 00:28:19,450 --> 00:28:25,090 If the piece of work isn't what you portray it to be, is it refundable? And 429 00:28:25,090 --> 00:28:25,909 say no. 430 00:28:25,910 --> 00:28:31,930 To see more of Fine Art Treasures Gallery, go to americangreed .cnbc .com. 431 00:28:31,930 --> 00:28:32,930 be right back. 432 00:28:37,550 --> 00:28:39,250 In late November 2005, 433 00:28:40,190 --> 00:28:44,290 Myron Tempchin wins his first Picasso lithograph from Fine Art Treasures 434 00:28:44,290 --> 00:28:45,290 Gallery. 435 00:28:45,899 --> 00:28:51,200 At just $2 ,010, Timption thinks he's getting a real steal. 436 00:28:51,820 --> 00:28:57,080 I think we were excited to think that we could have a lithograph from Picasso, 437 00:28:57,180 --> 00:29:02,620 and then it would be something I think we thought we could, you know, pass down 438 00:29:02,620 --> 00:29:03,800 through the family. 439 00:29:04,520 --> 00:29:09,360 Tempchen gets so caught up in the action that he actually bids on and wins a 440 00:29:09,360 --> 00:29:11,820 second Picasso for $2 ,050. 441 00:29:13,520 --> 00:29:18,920 The bid taker tells Tempchen the pieces will be shipped via FedEx to arrive on 442 00:29:18,920 --> 00:29:20,280 December 1, 2005. 443 00:29:21,240 --> 00:29:26,420 The box shows up, and my wife calls me and says, we've got the first Picasso, 444 00:29:26,540 --> 00:29:33,040 and it looks like a Xerox copy of a piece of work done by Picasso in a semi 445 00:29:33,040 --> 00:29:34,040 -fancy frame. 446 00:29:34,540 --> 00:29:36,140 And the certificate of authenticity? 447 00:29:36,660 --> 00:29:38,960 Wasn't framed. It wasn't in color. 448 00:29:39,240 --> 00:29:45,040 It had no seal on it. It was just something somebody hand scribbled 449 00:29:45,480 --> 00:29:49,820 The certificate also reveals that the lithograph Timption thought he purchased 450 00:29:49,820 --> 00:29:52,140 is really something called a verso. 451 00:29:52,900 --> 00:29:59,580 Evidently, a verso is the front side, the left side or the right side of 452 00:29:59,580 --> 00:30:01,860 a page in a book. 453 00:30:02,380 --> 00:30:08,320 And I think we probably have nicer copies of Potassos in the books in our 454 00:30:08,320 --> 00:30:09,320 art library. 455 00:30:09,480 --> 00:30:11,800 Myron Timpkin knows he's been fooled. 456 00:30:12,040 --> 00:30:16,480 And like any disgruntled customer, he sets out to get his money back. 457 00:30:17,440 --> 00:30:21,520 I have their mailing receipt. They have an address. I'm going to go to the 458 00:30:21,520 --> 00:30:26,420 office. I'm going to bring them back the art and say, give me back my money. 459 00:30:26,680 --> 00:30:28,240 If only it were that easy. 460 00:30:29,740 --> 00:30:34,340 The office address is a short eight -mile drive from Tempchin's home. But 461 00:30:34,340 --> 00:30:36,840 he gets there, something's not right. 462 00:30:37,760 --> 00:30:44,640 I can't find the address because the address turns out to be a mailbox in 463 00:30:44,640 --> 00:30:47,320 one of these walk -in mail stores. 464 00:30:47,720 --> 00:30:51,520 So there is no company. There is no address. 465 00:30:52,000 --> 00:30:56,340 There's a standard answering machine that just runs. 466 00:30:57,150 --> 00:31:00,730 Takes messages and probably nobody responds. 467 00:31:02,030 --> 00:31:07,330 Tempchin scours his receipts for other contact information, and he finds a 468 00:31:07,330 --> 00:31:12,470 number for Christine Eubank's other company, the art reproduction business 469 00:31:12,470 --> 00:31:13,570 Image Editions. 470 00:31:13,930 --> 00:31:16,470 The answering machine voice. 471 00:31:17,440 --> 00:31:22,500 For this other company, it's the same voice of the answering machine. For the 472 00:31:22,500 --> 00:31:27,660 auction house, I looked them up on the Internet, and it turns out that these 473 00:31:27,660 --> 00:31:34,320 guys make what they call museum -quality sea clays. So they are 474 00:31:34,320 --> 00:31:37,220 a fancy copy store. 475 00:31:37,840 --> 00:31:42,320 Jemchin drives to the Van Nuys office, but that, too, is a dead end. 476 00:31:42,840 --> 00:31:48,320 I couldn't get any response from anybody. We don't know anything about 477 00:31:48,320 --> 00:31:54,020 auction. All we do is make these prints and sell them to whoever wants to buy 478 00:31:54,020 --> 00:31:55,020 them. 479 00:31:55,080 --> 00:31:59,440 Demption is more determined than ever to bring these scammers to justice. 480 00:31:59,720 --> 00:32:03,640 And he leaves word for Special Agent Christopher Talarco at the FBI. 481 00:32:04,160 --> 00:32:06,600 About a week later, we get a phone call. 482 00:32:06,800 --> 00:32:09,780 The agent, Chris, says, I'd like to come over. 483 00:32:10,830 --> 00:32:12,870 talk to you. I'd like to look at the art. 484 00:32:13,850 --> 00:32:17,910 It was very shortly after meeting them, I realized that they could be trusted. 485 00:32:18,090 --> 00:32:22,650 And I asked for their discretion and they guaranteed it to me. And they let 486 00:32:22,650 --> 00:32:26,370 take their art. We used their art as one of the pieces that we took to experts 487 00:32:26,370 --> 00:32:28,310 to verify that it was fake. 488 00:32:31,760 --> 00:32:37,260 By 2006, Fine Art Treasures Gallery is more successful than ever, and the 489 00:32:37,260 --> 00:32:41,240 competitor in Christine Eubanks pushes hard to keep the scam going, 490 00:32:41,640 --> 00:32:44,180 micromanaging every aspect of the production. 491 00:32:44,640 --> 00:32:49,440 I heard from witnesses and people that worked there that she was a very 492 00:32:49,440 --> 00:32:50,560 intimidating person. 493 00:32:50,780 --> 00:32:53,380 Many people claim to be afraid of her. 494 00:32:53,620 --> 00:32:58,800 She's somebody that lives inside her own specious logic. She comes up with her 495 00:32:58,800 --> 00:32:59,880 own sort of... 496 00:33:00,460 --> 00:33:04,660 idea of what's right and wrong and how she can justify these things in her 497 00:33:04,840 --> 00:33:05,940 She's a sociopath. 498 00:33:06,440 --> 00:33:11,720 In August, Eubanks hires television director Pat Cardamone to take the helm. 499 00:33:12,700 --> 00:33:15,720 Cardamone has no idea what he's getting himself into. 500 00:33:16,800 --> 00:33:20,980 There weren't enough people in the control room to do the job. And I'm not 501 00:33:20,980 --> 00:33:27,600 really that technical a guy, but the job really involved doing the jobs of about 502 00:33:27,600 --> 00:33:31,580 four or five different people that are generally involved in production. 503 00:33:32,320 --> 00:33:37,740 And with Eubanks in control, the production seems more like controlled 504 00:33:44,830 --> 00:33:48,630 Sometimes I'm too busy coloring the cameras to be able to hear what the 505 00:33:48,630 --> 00:33:52,010 auctioneer is saying. They ask for the clock, and I don't put the clock up. Put 506 00:33:52,010 --> 00:33:53,230 that clock on. Let's go. 507 00:33:53,770 --> 00:33:58,530 Christine would run back and forth between the control room and the sound 508 00:33:58,590 --> 00:34:00,350 At some point, I could hear her yelling. 509 00:34:00,960 --> 00:34:03,660 over my headsets, and I knew it was getting on the air. 510 00:34:05,860 --> 00:34:09,520 And it was either because there was something going wrong on the phones, or 511 00:34:09,520 --> 00:34:13,000 were putting the wrong artwork up, or they couldn't find the next piece that 512 00:34:13,000 --> 00:34:16,800 supposed to go up, or because I was doing something wrong. But as he becomes 513 00:34:16,800 --> 00:34:21,520 more comfortable in the control room, Tartamone suspects that things aren't 514 00:34:21,520 --> 00:34:22,478 they seem. 515 00:34:22,480 --> 00:34:26,440 It did cross my mind towards the end that they might be printing up some of 516 00:34:26,440 --> 00:34:27,440 stuff that we're selling. 517 00:34:28,969 --> 00:34:32,949 I asked her what a state sign meant at one point, and she said, that means that 518 00:34:32,949 --> 00:34:37,670 somebody is authorized by the author's estate to sign these paintings and to 519 00:34:37,670 --> 00:34:41,409 authenticate them. I didn't know that she was the one that was signing the 520 00:34:41,409 --> 00:34:42,409 paintings. 521 00:34:42,620 --> 00:34:47,800 By September 2006, investigators have gathered dozens of pieces of fake 522 00:34:47,800 --> 00:34:52,840 and certificates of authenticity, and they found nearly $4 million in Eubanks' 523 00:34:52,960 --> 00:34:53,960 personal accounts. 524 00:34:53,980 --> 00:34:57,720 When the personal investment accounts were located, there were significant 525 00:34:57,720 --> 00:35:01,180 assets that were directly traceable to the crimes themselves. 526 00:35:01,740 --> 00:35:05,160 Then it was just a matter of putting that on paper and getting the judge to 527 00:35:05,160 --> 00:35:06,160 off on the warrant. 528 00:35:06,270 --> 00:35:10,310 The team finally has enough evidence to secure search warrants for Christine 529 00:35:10,310 --> 00:35:12,430 Eubanks' house and her businesses. 530 00:35:13,210 --> 00:35:18,510 Right around the time of the takedown of this case, it appeared that the 531 00:35:18,510 --> 00:35:22,810 business was operating more efficiently than it ever had. 532 00:35:23,070 --> 00:35:25,670 Wow, what a fabulous deal. Next up. 533 00:35:26,310 --> 00:35:31,310 Next on American Greed, investigators pull the plug on Fine Art Treasures 534 00:35:31,310 --> 00:35:32,310 Gallery. 535 00:35:32,800 --> 00:35:38,240 That pursuit of money, that greed, creates a fog in people where they just 536 00:35:38,240 --> 00:35:42,440 care because all they want is as much money as they can get. And that's when 537 00:35:42,440 --> 00:35:44,300 people make mistakes, and that's where we strike. 538 00:35:54,300 --> 00:35:56,140 September 7, 2006, 539 00:35:57,040 --> 00:35:58,080 Southern California. 540 00:35:58,830 --> 00:36:03,430 More than 60 law enforcement officers await their cue to execute search 541 00:36:03,430 --> 00:36:09,450 on Christine Eubanks' house, her office, and the Fine Art Treasures Gallery 542 00:36:09,450 --> 00:36:13,890 studio. We had to wait to serve the search warrants because at the same time 543 00:36:13,890 --> 00:36:18,050 were serving the search warrants, we were also serving seizure warrants to 544 00:36:18,050 --> 00:36:20,330 freeze bank accounts all throughout the country. 545 00:36:21,040 --> 00:36:25,820 Once Agent successfully frees those accounts, the team moves in on Eubanks' 546 00:36:25,940 --> 00:36:31,320 office. When we came in, we were very shocked and scared. 547 00:36:32,580 --> 00:36:34,800 Not everybody was real cooperative right away. 548 00:36:35,040 --> 00:36:39,320 I immediately found Christine Eubanks, and she was working at the time. 549 00:36:39,640 --> 00:36:44,640 True to form, Eubanks is standoffish, and she lies to Agent Calarco. 550 00:36:45,120 --> 00:36:49,460 Christine Eubanks originally had said that she was not the owner -operator, 551 00:36:49,460 --> 00:36:50,460 she was just an employee. 552 00:36:50,620 --> 00:36:54,920 When I asked her to identify who the owner was, she was evasive and wasn't 553 00:36:54,920 --> 00:36:59,500 cooperating. Eubanks is handcuffed just as Rona Lopez arrives for work. 554 00:36:59,800 --> 00:37:03,260 When I got inside, it was kind of like a real mess. 555 00:37:03,560 --> 00:37:08,500 They were leading Christine out in handcuffs. I tried to look her in the 556 00:37:08,580 --> 00:37:09,720 She wouldn't look me in the eye. 557 00:37:10,100 --> 00:37:12,080 And, you know, I... 558 00:37:13,020 --> 00:37:14,420 It was just all a shock. 559 00:37:16,280 --> 00:37:21,140 Meanwhile, investigators begin the daunting task of sifting through 560 00:37:21,140 --> 00:37:25,140 evidence. We found all the records of the business. 561 00:37:26,060 --> 00:37:31,200 We found all the accounting records, where some of the art was being 562 00:37:31,200 --> 00:37:32,200 from. 563 00:37:32,260 --> 00:37:38,080 We found evidence of certain art that they were making on scene, pieces of 564 00:37:38,080 --> 00:37:39,480 where people were practicing. 565 00:37:40,270 --> 00:37:44,190 signing artists' names. And so you could tell that somebody had been working on 566 00:37:44,190 --> 00:37:49,570 it. The team works overnight to catalog more than 700 pieces of broad -driven 567 00:37:49,570 --> 00:37:51,870 artwork and certificates of authenticity. 568 00:37:52,430 --> 00:37:57,710 We had to set up an assembly line where we're taking pictures of each artwork 569 00:37:57,710 --> 00:38:00,350 that went on hour after hour after hour. 570 00:38:05,770 --> 00:38:09,870 The goods are hauled off to this FBI asset forfeiture warehouse. 571 00:38:10,990 --> 00:38:16,610 Some pieces will be kept as evidence later for other cases as good examples 572 00:38:16,610 --> 00:38:18,070 fraudulent art. 573 00:38:19,890 --> 00:38:24,130 But most of it will actually end up being destroyed because we don't want 574 00:38:24,130 --> 00:38:25,150 ever to hit the marketplace. 575 00:38:25,750 --> 00:38:29,950 And we don't want any more victims to be generated as a result of this 576 00:38:29,950 --> 00:38:30,950 television show. 577 00:38:37,800 --> 00:38:42,540 Christine Eubanks' own husband, Gerald Sullivan, and their former partner, 578 00:38:42,540 --> 00:38:45,760 Mobley, turn against her and cooperate with the government. 579 00:38:46,100 --> 00:38:51,480 In March 2007, Sullivan pleads guilty to several conspiracy charges, including 580 00:38:51,480 --> 00:38:52,480 wire fraud. 581 00:38:52,640 --> 00:38:54,760 He's sentenced to four years in prison. 582 00:38:55,160 --> 00:38:59,800 Mobley pleads guilty to felony conspiracy charges. He gets five years. 583 00:39:00,330 --> 00:39:05,250 And in April 2007, Eubanks pleaded guilty to conspiracy to commit mail 584 00:39:05,550 --> 00:39:09,710 wire fraud, interstate transportation of stolen property, and filing a false 585 00:39:09,710 --> 00:39:10,710 income tax return. 586 00:39:11,230 --> 00:39:13,710 She's sentenced to seven years in prison. 587 00:39:17,930 --> 00:39:23,250 In all, the scam brings in more than $20 million from more than 10 ,000 victims 588 00:39:23,250 --> 00:39:24,430 across the country. 589 00:39:24,630 --> 00:39:26,270 We cut the head off the snake. 590 00:39:26,800 --> 00:39:30,600 Just putting Christine Eubanks in jail couldn't really stop the type of conduct 591 00:39:30,600 --> 00:39:35,740 that was going on, but what it could do was drastically reduce the market for 592 00:39:35,740 --> 00:39:38,560 where those suppliers of fake art could sell their wares. 593 00:39:38,980 --> 00:39:43,500 Once DirecTV and Dish Network learned of the scam, they pulled the show off the 594 00:39:43,500 --> 00:39:49,880 air. Dish Network declined to comment, but DirecTV says, This programming was 595 00:39:49,880 --> 00:39:51,560 brought to us by a third -party broker. 596 00:39:51,860 --> 00:39:53,840 This was an extremely rare case. 597 00:39:54,480 --> 00:39:58,640 We do our best to protect our customers by insisting that companies representing 598 00:39:58,640 --> 00:40:03,560 paid programmers affirm that the producers will conduct their business in 599 00:40:03,560 --> 00:40:07,420 honest and legal manner before we agree to carry their programming. 600 00:40:08,620 --> 00:40:13,340 The government seizes nearly $4 million from bank accounts controlled by Eubanks 601 00:40:13,340 --> 00:40:14,238 and Sullivan. 602 00:40:14,240 --> 00:40:17,600 They had a nice house and a nice neighborhood, but it wasn't Beverly 603 00:40:17,600 --> 00:40:21,660 it certainly wasn't a mansion. They were saving up for a rainy day, it looks 604 00:40:21,660 --> 00:40:23,080 like, when they were going to call it quits. 605 00:40:25,290 --> 00:40:30,450 Director Pat Cardamone still lists Fine Art Treasures Gallery as a credit on his 606 00:40:30,450 --> 00:40:31,450 resume. 607 00:40:31,730 --> 00:40:36,210 Today, he directs televised mass services at his Pasadena Catholic 608 00:40:36,990 --> 00:40:38,630 Working here is my penance. 609 00:40:39,630 --> 00:40:44,450 I enjoy working with good people. I enjoy working with honest people. And 610 00:40:44,450 --> 00:40:48,150 much more comfortable working on that side of the law than working with 611 00:40:48,150 --> 00:40:49,150 Christine. 612 00:40:50,670 --> 00:40:56,290 My redemption never got a real Picasso, but he is ultimately made whole after 613 00:40:56,290 --> 00:40:57,970 losing more than $4 ,000. 614 00:40:58,510 --> 00:41:04,030 I think there's a part of us that are dreamers and we're looking for something 615 00:41:04,030 --> 00:41:09,670 good to happen to us, for our family. So some of us take the risk and some 616 00:41:09,670 --> 00:41:13,570 don't. I took the risk and got scammed. 617 00:41:15,070 --> 00:41:19,790 Since artist John O 'Brien's death, his widow Martha has struggled to regain 618 00:41:19,790 --> 00:41:21,690 control of her husband's work. 619 00:41:21,950 --> 00:41:28,590 I was dealing with motions, motions, motions, and hearings and 620 00:41:28,590 --> 00:41:33,750 depositions and responses and find this document and find that document and 621 00:41:33,750 --> 00:41:37,930 running to lawyer's office. At one point in time, I had ten lawyers in my life. 622 00:41:38,530 --> 00:41:39,530 Ten. 623 00:41:39,870 --> 00:41:44,870 O 'Brien was part of a lawsuit against Princess Cruise Lines, which issued this 624 00:41:44,870 --> 00:41:50,010 statement. We contacted all purchasers of the art to disclose there was a 625 00:41:50,010 --> 00:41:54,090 dispute on authorization of the print edition they purchased, which may 626 00:41:54,090 --> 00:41:58,130 their particular piece, and we offered refunds if the purchasers wished to 627 00:41:58,130 --> 00:41:59,130 return the art. 628 00:42:01,350 --> 00:42:06,170 She is no longer part of the suit. The fight against Eubanks becomes too much 629 00:42:06,170 --> 00:42:07,310 for O 'Brien to handle. 630 00:42:07,770 --> 00:42:11,530 Now she spends her time authenticating her husband's work. 631 00:42:11,770 --> 00:42:18,090 They opened the door, and then once the marketplace was tainted 632 00:42:18,090 --> 00:42:23,850 with the fraud art, and then things became easy to do on the Internet, I 633 00:42:23,850 --> 00:42:28,590 they just paved the way, and they set an example to show how easy it was. To 634 00:42:28,590 --> 00:42:32,950 this day, I feel like I'm still fighting for his life in a different way. 635 00:42:33,600 --> 00:42:35,720 But I'm fighting to keep the legacy true. 636 00:42:36,000 --> 00:42:41,720 If I don't make it right now, my girls will grow up and their dad's art will go 637 00:42:41,720 --> 00:42:45,800 by the wayside. And what could have been the dream that he had will never 638 00:42:45,800 --> 00:42:46,800 happen.