One of the paintings seized by Canadian police. Officers say some were sold for 'tens of thousands of dollars' to unsuspecting collectors. AFP
One of the paintings seized by Canadian police. Officers say some were sold for 'tens of thousands of dollars' to unsuspecting collectors. AFP
One of the paintings seized by Canadian police. Officers say some were sold for 'tens of thousands of dollars' to unsuspecting collectors. AFP
One of the paintings seized by Canadian police. Officers say some were sold for 'tens of thousands of dollars' to unsuspecting collectors. AFP

Indigenous art forgery ring smashed in Canada


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Canadian police said they have dismantled a decades-old forgery ring accused of producing and selling thousands of fake paintings by indigenous artist Norval Morrisseau around the world.

Eight people, including a nephew of Morrisseau, were arrested this week and face a total of 40 charges including forgery of artworks and of paperwork that purported to authenticate them.

"Over 1,000 allegedly fraudulent paintings have been seized. The total number produced and sold is unknown," Ontario Provincial Police Deputy Commissioner Kari Dart told a news conference on Friday.

Some of the paintings sold for tens of thousands of dollars to unsuspecting buyers across Canada and internationally.

Detective Kevin Veilleux said the forgery ring began in 1996 with a single individual, David Voss, 51, allegedly making counterfeit paintings himself "before growing his organisation into a full assembly line of painters".

Ontario Provincial Police in Canada released evidence showing alleged forgeries of artwork by Norval Morrisseau. AFP
Ontario Provincial Police in Canada released evidence showing alleged forgeries of artwork by Norval Morrisseau. AFP

In 2002, Morrisseau's nephew Benjamin, now 53, joined the group as one of two indigenous painters enlisted to help mass produce the fakes.

Norval Morrisseau, also known as Copper Thunderbird and widely regarded as the grandfather of Canadian indigenous art, established a pictographic style of contemporary indigenous art, referred to as the Woodland School.

Self-taught, in 1962 he become the first indigenous artist to have his artworks shown in a contemporary Canadian art gallery, sparking growing interest in his work. Most indigenous art until then had been viewed with an anthropological lens rather than as modern art.

Morrisseau's artworks are now found in galleries across Canada and around the world. Originally from the Bingwi Neyaashi Anishinaabek First Nation (formerly called Sand Point First Nation), he died in 2007 aged 75.

"He was the first contemporary indigenous artist to break into the mainstream art world in Canada," said Dart, who called his contributions to art and culture "significant and incomparable".

It is those contributions and his global success that may have made him an "easy target for fraud", she concluded.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Updated: March 04, 2023, 11:10 AM