from www.theage.com.au – HE LIKED to splurge on fast cars, rare coins, bloodstock, and gambling. She liked to buy expensive art with the cash he’d give her. But Mimi Ange, estranged wife of Sydney porn-shop king Con Ange [pictured], showed an equally perilous gambling streak last year when she consigned $2 million worth of art for sale at Melbourne auction house Bonhams and Goodman.
It was the act of a desperate woman – separated from her husband, Mrs Ange needed money to pay school fees – but she paid dearly for the deed.
Mrs Ange withdrew 22 paintings from the May 6 auction after her husband sought a court order, leaving auctioneer Tim Goodman minus a substantial chunk of his night’s list.
Among the key works offered by Mrs Ange was Frederick McCubbin’s Midsummer Eve, which had been estimated to sell for up to $1.2 million, and works by Arthur Streeton, Norman Lindsay, Eugene von Guerard and Walter Withers.
After that humiliating and costly night, Goodman, and his company First East Auction Holdings took Mrs Ange to court, suing her for withdrawing the paintings – and won.
Yesterday, the Supreme Court of Victoria ordered Mrs Ange to pay First East Auction Holdings – former owners of Bonhams and Goodman, now trading as Sotheby’s Australia – a $731,280 withdrawal fee, interest of $36,000, and legal costs.
Con Ange has been referred to the Tax Office by Supreme Court Justice Hargrave.
He noted that Mr Ange kept large amounts of cash in a safe located in the matrimonial home, and evidence showed that many paintings were bought and sold by Mr and Mrs Ange using that cash.
The judge said that Mrs Ange gave ”uncontradicted evidence that Mr Ange would pay for paintings with large amounts of cash, sometimes between $50,000 and $100,000”.
The judge added that Mr Ange estimated that about 60 per cent of the art collection was bought with cash, and the other 40 per cent by cheque.
”He freely acknowledged that the cash he used was takings from the businesses conducted by him,” the judge said.
It was also noted that three handwritten receipts, from disgraced Sydney arts dealer Ronald Coles, revealed payments totalling $3.8 million, at unspecified times, for 25 paintings, ranging from $12,000 to $1 million. (Mr Coles vanished in January last year, following the collapse of his art investment scheme – Mimi and Con Ange are among 85 investors allegedly defrauded by the rogue art dealer.)
”When a court receives evidence indicating a real case to be investigated as to the avoidance of tax obligations, the court should not turn a blind eye,” Justice Hargrave’s judgment said. ”In such circumstances, it is appropriate for a court to refer the evidence to the relevant taxation authority.”
Gary Singer, First East Auction Holding’s lawyer and chief executive officer, said he was pleased with the judgment.
”It was a difficult and embarrassing time for the company. It’s fair and just compensation. This has been a test case, we have been the first auction house to enforce a withdrawal fee in a court of law. It confirms that the conditions of sale are enforceable,” Mr Singer said.
Mrs Ange’s lawyer did not return telephone calls in time for publication.