Parisian auctioneer Guy Loudmer was jailed by an investigating judge on October 24th 1997 on charges of fund embezzlement.
The jailing of the buoyant Guy Loudmer, 64, caused a shock among other auctioneers a few months before the opening of the French territory to foreign auction houses such as Christie's and Sotheby's.
Guy Loudmer was jailed as a result of his role in the sale in 1990 of the Bourdon collection which realised a total turnover of 509 million french francs (about US $ 84 million).
The Bourdon couple, who were specialised in modern and contemporary art, first wanted to give all the sale proceeds to a fund for the protection of animals, for poor children and for needy artists. Instead, Loudmer persuaded them to create an association of which he became the treasurer until 1992.
The auctioneer also induced the Bourdons through an agreement signed before a notary (who was paid 5 million FF for the document) to place the proceeds in a special account. He is accused of fund misappropriation. Guy Loudmer has been known for long as the "naughty" member of the Paris auctionners grouping. Over 20 years ago he tried to organise sales outside the Hotel Drouot compound thus breaching strict rules. He was then sued and forced by a court decision to give up his own auction rooms rue du Faubourg Saint Honoré in 1979. Two years later he faced the threat of a suspension as his grouping had incurred a 2 million francs deficit (some US $ 300,000) in 1980.
Benefiting from the spectacular development of modern and contemporary art Guy Loudmer managed to rise to an enviable position which culminated with the Bourdon sale for which he obtained a 60 million francs commission (some US $ 10 million).
Ranked third in the list of Paris' top auction groupings, Loudmer prepared for the future by appointing his son Philippe as his associate. However, he came under fire for having committed irregularities during the Bourdon sale. In particular, five paintings reputedly sold were not paid and according to the rules he should have paid the Bourdons directly from his own pocket.
Instead he convinced them to get the paintings back. Such action stirred a series of articles in the press which led to the charges directed against him.
However, the reason of his jailing might be a screen masking other serious allegations against him, well-informed sources said.
If these were verified, a major scandal would rock the entire profession which faces deep changes due to occur early in 1998.
With the forthcoming installation of Sotheby's and Christie's in Paris, many auctioneers will be forced to pack up and are now negotiating with French authorities, notably the Justice Ministry under whose tutelage they are, to obtain compensations.
Loudmer's career seems to be about to face an abrupt end and despite the fact that half of his grouping now belongs to his son Philippe observers said that the latter lacked the experience and charisma of his father to face the hard challenge of keeping its position.
The Loudmer case is only starting but the jailing of a man of such stature will not go without deep consequences especially if other charges were to fall upon him. Adrian Darmon
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