Even though most of the art world has been in trouble during the summer, earlier this week, news broke out about a tough legal battle between top art consultant Barbara Guggenheim and her former partner Abigail Asher.
The explosion in consultant’s high-profile partnership Guggenheim Asher Associates (GAA) has already set off a wave of industry announced earlier this month by dealer Tim Blum, saying he is closing his gallery of the same name.
In a widely shared post on LinkedIn, collector Sylvain Levy made the news with a stark statement.
“The collapse of Guggenheim Asshes Associates was once the backbone of the international art consulting landscape, not just a private dispute between two prominent figures,” Levi wrote. “It was a public moment, and it was a public moment for an industry that has long operated with trust, discretion and the highest level of informality.”
Levy continued that the dispute revealed “governance system failure” in the art world, especially in the consulting industry, “this remains “the least regulated person in the global cultural economy…by codification standards less than reputation networks, with fewer rules. ”
The legal battle began last August when Guggenheim accused Asher of misusing company funds and claimed that he received up to $20.5 million in commissions on future committees, and despite no non-competition clauses and already disbanded business, they followed her after the two separate ways. According to court documents, Asher was charged with using money to all aspects from home renovations to meals and European Health Club retreats.
Although Asher initially tried to dismiss the lawsuit, earlier this week she accused her ex-partner of “stolen money from the company to pay for personal expenses, including her husband’s funeral expenses, luxury cars and family vacations.” Asher also claimed that Guggenheim had bullied her for a long time, threatened her, and directed her to “wear leather and provocatively” and even sleep with clients.
Especially disturbing, Guggenheim encouraged Asher to form a relationship with Guggenheim’s friend Jeffrey Epstein.
Guggenheim has faced similar charges in the past. In 1989, actor Sylvester Stallone filed a $5 million civil fraud lawsuit, claiming that consultants put pressure on him to buy the damaged work and eventually charge him for the fee. The case was settled from the court.
Part of the original reputation of GAA stems from the fact that both women are executive members of the Association of Professional Arts Advisers (APAA), an invite-only organization that promotes “standards of established standards, scholarships and ethical practices for professionals” and that its members “focus on the core of ethical principles.”
But Maria Brito, an art consultant who has no affiliation with the APAA, said such organizations can only do many such organizations.
“Even regulators can’t stop consultants from committing crimes, violating ethics or causing tax fraud,” Brito told Artnews. “The biggest problem is not their reputation; it’s a possibility of violating state or federal laws or cheating on the IRS.”
Earlier this year, Lisa Schiff, a once-spread art consultant, pleaded guilty and was sentenced to 2.5 years in prison after plotting a behemoth-style plan that drained more than $6.4 million from friends and clients. Although Schiff is not a member of the APAA, she built her career in the early rise of the art market. In 2000, when she started a consultation, the APAA had only 60 members. Today, that number has grown to 185, while countless other consultants remain outside the organization.
APAA President Alex Glauber said in public announcement in 2023 Towns and countries The organization’s membership standards “are designed to deal with the reality of areas without barriers to entry. Overall, these standards are designed to define best practices for consulting best practices in an amorphous field that is often compromised by the most unqualified and the worst deceptive.”
APAA spokesman told Guggenheim -Asher during the lawsuit Artnews: “Like everyone, we still have more learning and cannot evaluate the allegations. We are unable to comment at this time.”
APAA member and former President Megan Fox Kelly said it is no surprise that the industry faces greater scrutiny after such a compelling legal dispute.
Fox Kelly told Fox Kelly Artnews. “Both consultants have a strong reputation and a long track record. I hope they still have a path forward, whether it’s together or independent.”
Two months before Guggenheim filed his lawsuit in 2024 nourish Asher reportedly split up with GAA, where she advised clients such as Sony and A-Listers, including Tom Cruise. As the lawsuit proceeds, it is unclear what impact the public and the chaotic dissolution of such a vital partnership will have on the entire consulting business.
Consultant Ralph DeLuca told Artnews. “My advice, if you want to work with a consultant, ask for your homework. Ask art dealers and auction houses. Watch their lives. If they are not responsible for their own money, what would you think they would do to you?”
