Edemar Cid Ferreira/ Banco Santos, S.A. Art Repatriation Case

Jurisdiction of Origin : 
Position of Public Officials/Persons (Years in Office): 
Founder and Former President of Banco Santos (unspecified-2006)
Jurisdiction of Recovery Effort / Asset Location: 
Jurisidction of Asset Recovery - Description: 
Undertaking Recovery Effort, Location of Recovery Effort, Asset Location / Alleged Asset Location
Recovery Start (Year): 
2007
UNCAC Offenses Implicated: 
Money laundering Implicated?: 
Yes
Status of Asset Recovery : 
Completed (in part) and Ongoing (in part)
Assets Not Yet Returned/Judgment (USD) - Current : 
$8,000,000
Assets Returned (USD): 
$4,000,000
Disposition of Criminal Case(s): 

According to the February 13, 2008 Verified Complaint filed in U.S. District Court for the Southern District of New York, Mr. Ferreira was sentenced in December 2006 by the 6th Federal Criminal Court Specialized in Crimes Against the National Financial System and Money Laundering of Sao Paulo/SP to 21 years' imprisonment for crimes against the national financial system and money laundering, (Source: US v. The Painting Known as "Hannibal" by Jean-Michel Basquiat, Case No. 1:08-cv-01511-RJS (S.D.N.Y.), Verified Complaint filed on February 13, 2008.)

Summary: 

According to the September 21, 2010 press release by the U.S. Attorney for the Southern District of New York, two paintings appraised at more than $4 million were repatriated to Brazil. The paintings had once belonged to Mr. Ferrerira, and as part of the investigations into his case, the 6th Federal Criminal Court Specialized in Crimes Against the National Financial System and Money Laundering of Sao Paulo/SP also ordered the search, seizure and confiscation of assets that Mr. Ferrerira, his associates and members of his family acquired with unlawfully obtained funds from Banco Santos. The assets included the artwork which had been smuggled into the United States. In 2007, Sao Paulo sought INTERPOL's assistance, and INTERPOL and the Government of Brazil sought the assistance by the United States. The U.S. Immigration and Customs Enforcement located and seized the artworks, and in 2008, the U.S. filed the civil asset forfeiture complaint. Two artworks -- Liechtenstein's "Modern Painting with Yellow Interweave" and Joaquin Torres-Garcia's "Figures dans une structure" -- were forfeited to the U.S. on August 16, 2010 and July 16, 2010, respectively. Other artworks -- Jean Michel Basquiat's "Hannibal" valued at about $8 million and a sculpture known as the "Roman Togatus" -- have also been forfeited to the U.S.; an appeal of that decision is pending, as of November 2, 2011. (Source: U.S. Attorney for the Southern District of New York Press Release, "Manhattan U.S. Attorney Returns Two Paintings Linked to Bank Fraud to Brazilian Government," September 21, 2010; US v. Broadening-Info Enterprises, Inc., Docket No. 10-5204 (2nd Cir.), Case Summary as of November 2, 2011.) The Default Judgment as to the Liechtenstein (US v. The Painting Known as "Hannibal," et al, Case No. 1:08-cv-01511-RJS (S.D.N.Y.), filed August 16, 2010 is available at http://www.bancosantos.com.br/Ceremony%20Obras%20de%20Arte%2020102109.pdf.

Contributing Factors in Asset Recovery: 
The U.S. Attorney for the Southern District of New York thanked the Brazilian authorities for their assistance with the investigation. (Source: U.S. Attorney for the Southern District of New York Press Release, "Manhattan U.S. Attorney Returns Two Paintings Linked to Bank Fraud to Brazilian Government," September 21, 2010.)
Agreement / Arrangement re: Returned Assets?: 
No
Agreement / Arrangment re: Returned Assets (Explanation): 
NA
Intl Cooperation Mechanism: MLAT/Letter of Request: 
MLAT; Letter of Request
Basis for Intl Cooperation Mechanism: 
Treaty between the United States and Brazil on Mutual Legal Assistance in Criminal Matters; Letter of Request (INTERPOL)
Investigating Agency (JO): 
Federal Police
ProsecAuth/Civil Atty (JO): 
State Prosecutor
Courts Involved (JO): 
6th Federal Criminal Court Specialized in Crimes Against the National Financial System and Money Laundering of Sao Paulo/SP
Investigative Agency (JAR): 
U.S. Immigration and Customs Enforcement, Cultural Property Art and Antiquities Unit; INTERPOL
ProsecAuth/Civil Atty (JAR): 
U.S. Attorney for the Southern District of New York, Asset Forfeiture Unit
Courts Involved (JAR): 
U.S. District Court for the Southern District of New York
Sources : 

U.S. Attorney for the Southern District of New York Press Releases, "Manhattan U.S. Attorney Returns Two Paintings Linked to Bank Fraud to Brazilian Government," September 21, 2010, accessed at http://www.justice.gov/usao/nys/pressreleases/September10/brazilrepatria... and "United States Files Action to Forfeit Basquiat Painting "Hannibal" Valued at $8 million," February 13, 2008.

U.S. v. The Painting Known as "Hannibal," Case No. 1:08-cv-01511-RJS (SDNY), Verified Complaint filed on February 13, 2008 and Default Judgment filed August 16, 2010 (latter accessed at http://www.bancosantos.com.br/Ceremony%20Obras%20de%20Arte%2020102109.pdf);

US v. Broadening-Info Enterprises, Inc., Docket No. 10-5204 (2nd Cir.), Case Summary as of November 2, 2011.