Ernst & Ernst Collector’s Gallery owner Donald Dean Seybold, might forfeit 2000 pieces of fine art which include: paintings, prints, sculptures, plates and books. Mr. Seybold could also end up forfeiting: a Las Vegas time share, a jeep, a sports utility vehicle and $3.2 million dollars.
Federal prosecutors are seeking asset forfeiture of these items pursuant to 18 U.S.C. §§981 & 982; 21 U.S.C. §853(p) and 28 U.S.C. §2461(c). This is happening because Mr. Seybold is accused of defrauding art investors in a Ponzi scheme. Mr. Seybold’s indictment claims that he made false representations to investors, that they could profit from the purchase and resale of certain art and art packages.
The relevant art, art packages and art buyers are however, believed to have all been fictitious. (Indictment, at ¶3). Mr. Seybold is suspected of violating 18 U.S.C. §1343, (wire fraud), by: "fraudulently us[ing] money obtained from later investors to pay off earlier investors." (Id., at ¶¶6). The docket report in U.S.A. v. Seybold, additionally reveals that Mr. Seybold made a June 1, 2009 pretrial discovery request to elicit information from prosecutors, about their case against him.
Copyright 2009 Fred L. Abrams