The Associated Press
SAN FRANCISCO (Aug 31, 2006)
A newspaper says the FBI is investigating artist Thomas Kinkade and company executives on allegations they fraudulently induced investors to open galleries, then ruined them financially.
Relying on information from former Kinkade dealers contacted by federal agents, the Los Angeles Times reported in its Tuesday editions that the FBI is focusing on issues raised in litigation brought by at least six former Thomas Kinkade Signature Gallery owners.
At least 10 former dealers nationwide have alleged in arbitration claims that the "Painter of Light" -- a California native beloved by some but reviled by the art establishment -- exploited his Christianity to persuade people to invest in the galleries, which sell only Kinkade's work.
After they had invested tens of thousands of dollars each, the former owners said, the company's policies drove them out of business. They say they were saddled with limited-edition prints no one wanted to buy, forced to open stores in inappropriate venues and undercut by discount galleries peddling the same items at prices they could not match.
Some also say Kinkade, who claims to be the most widely collected living American artist, schemed to devalue his public company, Media Arts Group Inc., so he could buy it on the cheap.
In 2004, Kinkade and other investors paid $32.7-million US to take Media Arts Group private, changing its name to Thomas Kinkade Co.
"These dealers became investors primarily because they were believers in faith, love, family and God, and the paintings reflect those values," said Joseph Ejbeh, an attorney who tried an arbitration case that began in San Francisco in December 2004.
Kinkade Co. spokesman Jim Bryant said the company was unaware of an FBI investigation.
"We assert that there are no legitimate grounds for a federal investigation of any kind," said Bryant in a statement e-mailed to The Associated Press.
FBI agent Brian Wickham did not return a phone call from the The Associated Press
Kinkade's paintings typically include tranquil scenes of country gardens, churches, streams and lighthouses in dewy morning light.
Many contain images from Bible passages.
Roughly 10-million Americans have a Kinkade painting at home. The wall hangings and spin-off products are said to earn $100-million US a year.
Nice Guy Eh! Joanne
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SAN FRANCISCO (Aug 31, 2006)
A newspaper says the FBI is investigating artist Thomas Kinkade and company executives on allegations they fraudulently induced investors to open galleries, then ruined them financially.
Relying on information from former Kinkade dealers contacted by federal agents, the Los Angeles Times reported in its Tuesday editions that the FBI is focusing on issues raised in litigation brought by at least six former Thomas Kinkade Signature Gallery owners.
At least 10 former dealers nationwide have alleged in arbitration claims that the "Painter of Light" -- a California native beloved by some but reviled by the art establishment -- exploited his Christianity to persuade people to invest in the galleries, which sell only Kinkade's work.
After they had invested tens of thousands of dollars each, the former owners said, the company's policies drove them out of business. They say they were saddled with limited-edition prints no one wanted to buy, forced to open stores in inappropriate venues and undercut by discount galleries peddling the same items at prices they could not match.
Some also say Kinkade, who claims to be the most widely collected living American artist, schemed to devalue his public company, Media Arts Group Inc., so he could buy it on the cheap.
In 2004, Kinkade and other investors paid $32.7-million US to take Media Arts Group private, changing its name to Thomas Kinkade Co.
"These dealers became investors primarily because they were believers in faith, love, family and God, and the paintings reflect those values," said Joseph Ejbeh, an attorney who tried an arbitration case that began in San Francisco in December 2004.
Kinkade Co. spokesman Jim Bryant said the company was unaware of an FBI investigation.
"We assert that there are no legitimate grounds for a federal investigation of any kind," said Bryant in a statement e-mailed to The Associated Press.
FBI agent Brian Wickham did not return a phone call from the The Associated Press
Kinkade's paintings typically include tranquil scenes of country gardens, churches, streams and lighthouses in dewy morning light.
Many contain images from Bible passages.
Roughly 10-million Americans have a Kinkade painting at home. The wall hangings and spin-off products are said to earn $100-million US a year.
Nice Guy Eh! Joanne
--------------------------------------------------------------------------------
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