The lastest story in the saga of the 165-year-old Knoedler gallery, which closed last year after accusations that the gallery was trafficking in multi-million dollar forgeries.

Lawsuits Claim Knoedler Made Huge Profits on Fakes

By PATRICIA COHEN

Published: October 21, 2012

For more than a dozen years the Upper East Side gallery Knoedler & Company was “substantially dependent” on profits it made from selling a mysterious collection of artwork that is at the center of a federal forgery investigation, former clients of this former gallery have charged in court papers.

Glafira Rosales, the little-known dealer at the center at the center of the FBI investigation, has said the bulk of the newly discovered masterworks came from an old family friend, an anonymous collector whom she has steadfastly refused to name. Files at Knoedler about him were labeled “Secret Santa.”

According to Ms. Freedman’s lawyers Ms. Rosales at one point told Ms. Freedman to stop pressing for more information about the unnamed collector, saying, “Don’t kill the goose that’s laying the golden egg.”

Read the whole story here.