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San Francisco Man Indicted For Mail Fraud
A grand jury in San Francisco has indicted Luke D. Brugnara, 50, for allegedly orchestrating a brazen $11 million art scam. According to the indictment, Brugnara agreed to purchase several works of art, but after taking possession, he refused to pay or return them.
The scheme allegedly unfolded when Brugnara ordered the art from New York, but instead of paying, he fled with the valuable items. Law enforcement authorities obtained a search warrant for Brugnara’s home and seized four of the five crates of art. The fifth crate, containing a work worth hundreds of thousands of dollars, remains missing.
Brugnara, who had no means to pay for the art, had misrepresented his financial situation to the sellers. The indictment alleges that he had almost no income, no assets, and a substantially negative net worth. The maximum statutory penalty for mail fraud is 20 years in prison, a fine of $250,000, forfeiture, and restitution.
Brugnara’s past convictions include filing false tax returns, making false statements, and violating the Endangered Species Act. He was sentenced to 30 months in prison in 2010 and was still on supervised release when he allegedly committed the fraud offense. “This indictment serves as a stark reminder that those who commit financial crimes will face the full force of the law,” said U.S. Attorney Melinda Haag.
Brugnara was arrested on May 28, 2014, and remains in custody. His next court appearance is scheduled for June 9, 2014, before the Honorable Laurel Beeler, United States Magistrate Court Judge.
Assistant U.S. Attorney Doug Sprague is leading the prosecution, with the assistance of Rawaty Yim. The case is the result of a one-month investigation by the Federal Bureau of Investigation. As with all defendants, Luke D. Brugnara must be presumed innocent unless and until proven guilty.”
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Key Facts
- State: California
- Category: White Collar Crime
- Source: DOJ Press Release ↗
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