A former art dealer accused of failing to pay more than $1 million to the owners of paintings sold through his gallery, including former Hollywood powerbroker Michael Ovitz, pleaded not guilty Friday to three felony charges.
Los Angeles Superior Court Judge Sergio C. Tapia ordered Perry Rubenstein, 62, to be held in lieu of $1 million bail, pending a bail review hearing next Friday.
He is also expected back in court May 11, when a date will be set for a hearing to determine if there is enough evidence for him to stand trial on three counts of grand theft by embezzlement.
One of Rubenstein’s attorneys, Stephen Sitkoff, told the judge that his client had “no criminal record whatsoever” and that defense lawyers had unsuccessfully offered to arrange Rubenstein’s surrender if he was charged.
Deputy District Attorney Marisa Zarate countered that the $1 million bail was appropriate.
Rubenstein claimed that he sold two paintings by artist Richard Price for Ovitz in 2013, totaling more than $1 million, but never paid his client and kept the proceeds, prosecutors allege.
Rubenstein is also accused of selling a painting by Takashi Murakami on behalf of art collector Michael Salke, but failing to turn over the full amount to him.
Outside court, Sitkoff said, “This is a civil matter. It doesn’t belong in criminal court.”
The Los Angeles Times reported that Rubenstein’s gallery declared bankruptcy in 2014.
Rubenstein was arrested late Thursday in Santa Monica. If convicted as charged, he could face up to 15 years in state prison, according to the District Attorney’s Office.
— City News Service