Billionaire sues Christie’s over £14.5M Picasso’s hidden past

Sasan Ghandehari, a billionaire venture capitalist, is suing Christie’s auction house for allegedly concealing that a £14.5 million Picasso painting titled “Femme dans un rocking-chair (Jacqueline)” had previously belonged to a convicted drug trafficker.
The lawsuit centers on a third-party guarantee agreement that Ghandehari’s company Brewer Management Corporation entered with Christie’s, committing to purchase the 1956 painting if it failed to sell at the February 2023 auction.
José Mestre Sr., the painting’s previous owner, was arrested in 2014 and convicted for facilitating the entry of 202 kilograms of cocaine worth 14 million euros into Barcelona’s port while serving as general manager of the port’s main container operator.
Ghandehari claims he discovered Mestre Sr.’s criminal background through an internet search after Christie’s had informally told him the former owner was deceased, and states he would never have signed the guarantee contract knowing about the connection to drug trafficking.
Christie’s has denied any wrongdoing, describing the lawsuit as an attempt to break a valid agreement and stating it fulfilled all legal obligations, while the case highlights broader concerns about provenance research and money laundering risks in the art market.

A London-based billionaire venture capitalist has filed a lawsuit against Christie’s auction house, claiming the prestigious firm concealed the criminal background of the previous owner of a Pablo Picasso painting valued at £14.5 million ($19.6 million).

Sasan Ghandehari, through his British Virgin Islands-based company Brewer Management Corporation, alleges Christie’s failed to disclose that the painting “Femme dans un rocking-chair (Jacqueline)” had previously belonged to José Mestre Sr., a Spanish businessman convicted of international cocaine trafficking.

The Guarantee Agreement Goes Wrong

The dispute centers on a third-party guarantee arrangement Ghandehari entered with Christie’s for the painting’s auction in February 2023. Under this agreement, Brewer Management committed to purchase the Picasso for £14.5 million if it failed to sell at auction, essentially providing a financial safety net for the consignment. The painting depicts Picasso’s second wife and muse Jacqueline Roque, painted in 1956.christies

According to the Financial Times, Ghandehari discovered through a simple internet search that Mestre Sr. “appeared to be alive and had been convicted of drug trafficking,” contradicting what a Christie’s executive had informally told him about the former owner’s status. The lawsuit alleges that Ghandehari would never have entered the guarantee agreement if he had known about the work’s connection to criminal activity.ft

Drug Trafficker’s Art Collection

José Mestre Sr. was arrested in 2014 following the seizure of 202 kilograms of cocaine discovered in a cargo container aboard the Panamanian ship MSC Corinna at Barcelona’s port. The Spanish businessman, who was general manager of TerCat, the port’s main container operator, was convicted of facilitating the entry of 187 kilograms of cocaine worth 14 million euros into Barcelona.lnginnorthernbc

Initially sentenced to 12 years in prison and fined 14 million euros, the Supreme Court later reduced Mestre Sr.’s sentence to nine years. He served only one year before receiving exceptional day-release privileges in 2015, a decision that legal sources described as “absolutely exceptional” for organized crime cases.intelligenceline

Art Market Risks and Due Diligence

The case highlights ongoing concerns about the art market’s vulnerability to money laundering and the importance of thorough provenance research. Art trafficking has increasingly become entangled with organized crime networks, with high-value artworks used as collateral for illicit deals or money laundering vehicles.crimereads

Christie’s has denied any wrongdoing, describing the lawsuit as an attempt to break a valid agreement. The auction house stated it fulfilled all legal and regulatory obligations and noted that Ghandehari is an experienced art market participant who should understand the risks involved.lnginnorthernbc

The dispute underscores the critical importance of comprehensive due diligence in art transactions, particularly regarding works with potentially problematic ownership histories. Third-party guarantee arrangements, which have become increasingly common in the art market, create additional complexity when questions arise about a work’s provenance after the financial commitment has been made.observer