KNOEDLER TRIAL:Knoedler Gallery Fraud Trial Abruptly Suspended—Settlement Seems Likely

Knoedler Gallery Fraud Trial Abruptly Suspended—Settlement Seems Likely

Brian Boucher, Tuesday, February 9, 2016This morning, Aaron Crowell, one of the De Soles' lawyers, questioned Knoedler gallery accountant Ruth Blankschen at length; she revealed that Hammer had bought a $482,000 Rolls Royce and a $520,000 Mercedes during the years that, as a forensic accountant had earlier testified, the gallery was profitable only through the sale of fakes.

Hammer then sold the car, she testified, and the holding company paid the taxes on his income from the sale.

She also testified that Hammer had charged as much as $1.2 million on a company American Express card between 2001 and 2012. She testified that the expenses included a trip to Paris for his wife, Dru Ann Hammer.

Ruth Blankschen on stand questioned by Aaron Crowell, the De Soles in the foreground

Blankschen said that she had paid Rosales up to $9,000 in cash in an envelope for each of the paintings she brought to the gallery, which is significant because the IRS requires reporting of cash transactions over $10,000.

"I don't think I'd do it that way today," Blankschen said on the stand.

Michael Hammer seated at defense table prior to the judge excusing the jury.
Hammer did not take the witness stand.