Jackie Fine Arts Inc

Jackie Fine Arts sold 2000+ art masters at 225-250K each actual value 10K with 409M in notes receivable

Per Faircloth v. Finesod 938 F.2d 513 (4th Cir 1991): Jackie Fine Arts Inc wholly owned by M and J Holding Corporation owned by Herman Finesod. M and J 1986 tax return showed assets of 1.33 billion. Jackie sold over 2000 art masters at 225K-250K average price. Actual cost per art master approximately 10K. In 1986 Jackie held 409 million in notes receivable from buyers. Fraudulent independent appraisals by Sigmund Rothschild (250/appraisal) and F Peter Rose (150-300 each plus 50 kickback to Rothschild) valuing masters at 700K-750K. An LA law firm wrote tax opinion while secretly receiving 1 percent of cash from sales.

Jackie Fine Arts art master scheme: bought Picasso reproduction rights via Paraselenes SA (Marina Picasso company) through AMI for roughly 10K per master. Sold to investors at 225-250K with fake independent appraisals from Rothschild (750K) and Rose (700K) who shared office and secretary. LA law firm gave tax opinion while secretly receiving 1 pct of sales. 2500 total appraisals produced.

Jackie Fine Arts Inc was a Gold and Wachtel client that ran a massive tax shelter fraud scheme. Founded by Herman Finesod (called King of Tax Shelters). Sold art master reproduction rights - copies of famous paintings purchased for approx 10K each - to over 2000 investors at 225K-250K each with fraudulent independent appraisals at 700K-750K. Appraisers Sigmund Rothschild and F Peter Rose shared an office and secretary (undisclosed). IRS disallowed the tax shelters. Finesod hit with 4.3M+ judgment for fraud RICO and civil conspiracy (Faircloth v Finesod 938 F.2d 513, 4th Cir 1991). Bernard Indyke (Darren Indykes father) was manager and board member of Jackie Fine Arts.

Jackie Fine Arts Inc faced lawsuits across at least 8 federal districts 1983-1992: Turner v JFA (SD CA 1983), Menish v JFA (CD CA 1984), Ross v JFA (D SC 1985), Westheimer v Finesod (SD TX 1986), Nichols v JFA (D ME 1987), Bergin v JFA (D MN 1987), Faircloth v JFA (ED NY and SD FL 1989), Ross v JFA (SD CA 1990-1992), Burch v JFA (ED NY 1992). Founder Herman Finesod personally sued: Vigil v Finesod (D NM 1987, multi-district), Levi v Finesod (SD NY 1992), bankruptcy (WD PA 1994). Entity sold low-value art reproduction rights to wealthy buyers as calculated tax dodge.

IRS disallowed all Jackie Fine Arts art master tax deductions. Rose v Commissioner 868 F.2d 851 6th Cir 1989 ruled art master packages lacked economic substance and were generic tax shelters. Tax court found investors had no honest profit motive. Nationwide lawsuits arose: at least 10 separate federal cases across SC AL MN ME CA FL NY districts from 1983-1992.

Jackie Fine Arts sold 2000+ art masters at 225-250K each that cost only 10K. 409M in notes receivable by 1986. Jury found fraud RICO civil conspiracy. 5M punitive against JFA, 2.5M against Finesod, 500K against Rose. Total judgment exceeded 4.3M plus 615K attorney fees. Faircloth v Finesod 938 F.2d 513 4th Cir 1991.

Jackie Fine Arts generated nationwide litigation in at least 10 federal districts and multiple state courts

CourtListener search reveals Jackie Fine Arts was sued in at least 12 separate federal and state courts: D. South Carolina (Faircloth Ross), D. Minnesota (Bergin), D. Maine (Nichols), C.D. California (Ross Menish), S.D. California (Turner Ross Gray Cary), E.D. New York (Faircloth transfer Burch Cracchiolo), S.D. Florida (Faircloth), Arizona Court of Appeals (Daggett), Wyoming Supreme Court (McGreal), Alabama Supreme Court (Berkowitz), 6th Circuit (Hoops v Hudson). Related Finesod cases in D. New Mexico (Vigil), S.D. Texas (Westheimer), and S.D. New York (Levi). The Terra-Drill Partnerships Securities Litigation (MDL No. 791) was also a Finesod vehicle.

Jackie Fine Arts GmbH registered in Munich Germany (Handelsregister HRB 58801). Status: removed. This shows JFA had international operations beyond the US, including a German subsidiary. OCCRP Aleph confirmed via German companies registry OpenCorporates scrape.