Leon Black, co-founder of Apollo Global Management (NYSE:APO) and former chairman of the Museum of Modern Art, has found his art dealings under a magnifying glass. The transactions, dating back to 2016, involved Jeffrey Epstein and have attracted the attention of the Senate Finance Committee.
Black sold an Alberto Giacometti sculpture to Epstein's Haze Trust for $25 million in 2016. He then purchased a Paul Cezanne painting for $30 million. The deal was structured as a 1031 exchange, with facilitation provided by the Chicago Deferred Exchange Company. Epstein's Southern Trust funded the purchases.
The Senate Finance Committee is currently scrutinizing the $158 million in fees that Black paid to Epstein. Another transaction under examination saw the Haze Trust acquire Georges Braque’s “Le Guéridon” from one of Black's companies for $5 million.
Following Epstein's arrest and subsequent death, and in light of controversies surrounding their dealings, Black stepped down from his position at Apollo. He also reached a settlement with the U.S. Virgin Islands, paying $62.5 million over his ties to Epstein.
In a separate but related development, a New York State tax audit was initiated in 2017. This investigation was to determine if adequate sales tax had been collected from two of Black’s art holding companies.
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