I'm a victim, pleads dealer hiding from art fraud case

The former multimillionaire art dealer, who once rubbed shoulders with the country's rich and famous, is accused of forging artworks and defrauding clients of up to $30 million.

But when The Sun-Herald found him filling up his taxi at a petrol station on Thursday night, he said: "I am also a victim in this ... I haven't got anyone's paintings. I haven't got anyone's paintings; I haven't got anyone's money."

The artful dodger disappeared 10 months ago after his business dealings unravelled following an investigation by The Sun-Herald and The Sydney Morning Herald.

Police raided properties  including his gallery in Kenthurst in north-western Sydney  seizing more than 400 paintings and a firearm.

Some works by Australian masters including Arthur Streeton, Norman Lindsay and Pro Hart were found to be fakes.

As creditors, investors, police and media clamoured to find him, Mr Coles lived a secret life, eluding the public gaze until Thursday night  his 62nd birthday.

After alighting from his taxi near his Central Coast hideaway, he realised he was being photographed.

He attempted to run but changed his mind, stopping to declare he, too, was a victim in the extraordinary saga that has rocked the Australian art world.

"Why do you think I'm living like this in a small flat doing night-time taxi work? I'm also a victim in all of this," he said.

"I had to sell all of my property  some were worth $3 million  and I have done what I can to pay everyone back. I have run out of money, I have nothing."

After agreeing to take a drive in his cab, he opened up about his downfall as one of Australia's leading art dealers. When told many people wanted to know where their art investments were and whether they were genuine works or fakes, he said: "A lot of questions will be answered soon", adding he was a "good man".

"I haven't got anyone's paintings. I haven't got anyone's paintings; I haven't got anyone's money. You know I have used every cent I had to pay as many creditors. My bankruptcy is in a Clayton's state of bankruptcy. I used my last $10 to pay my last creditor and, when I had nothing left, I went on the dole."

Earlier, The Sun-Herald visited the small rental property in which Mr Coles has been living. An easel and a jar full of paintbrushes provided some evidence of the claims that he is an artist, not just a dealer.

"The coppers know I have no overseas assets or anything hidden away," he said.

"If I'm lucky, I can make about $700 a week  that is $10 an hour, $100 a night, driving taxis seven days a week."

On Thursday night Mr Coles agreed to talk again on Friday after consulting his Sydney-based lawyer on his legal position.

But on Friday  after visiting a "millionaire mate's" place in Sydney and taking legal advice from his friend's solicitor  he said he could not talk officially about the details of the case because he had not been formally interviewed by the NSW fraud squad.

"There is a story ... but it is just not the story that has been going [in the media]," he said.

He repeated claims that he was stony-broke.

"Twelve months before my demise, I could have rung a dozen people and got $500,000 off them in 48 hours off a dozen of them," he said.

"That's $6 million. I could have gone overseas if I wanted to diddle anyone. They would have been more than happy to give it to me with the money they've made over the years [from art dealings]. They couldn't write the cheques quick enough."

The Sun-Herald put it to Mr Coles that there were many questions that people would like answered. What does he think of the impact of the saga on his alleged victims? When did he first get involved in art? How is his health?

"You're right, it's destroyed us," he said. "I can't believe so many people are interested. I just can't believe that there are so many people interested. It staggers me!"

Asked if the extent of his personal loss  including his gallery, three properties and his Bentley which he has now traded for an old station wagon  was $3 million, $5 million or more, he replied: "Yeah, that's right. I just couldn't put a figure on it but it was a substantial amount of money."

Reminded he had previously said that, at the height of his business success, he was worth more than $10 million, he said: "Well, I certainly lost everything I had; I don't know if it was as high as that but it was certainly substantial. Down the track there is a really big story to tell."

Asked if he would like to send a message to his creditors and investors, he said: "I've done the best I can possibly do; I have no money left. I asked investors to be patient. At the end of the day I am the worst off here as I have lost everything."

Yesterday, fraud squad commander Detective Superintendent Col Dyson confirmed his officers had visited Mr Coles several weeks ago.

"Mr Coles was invited to do a formal interview but declined," Superintendent Dyson said.

"Officers from Strike Force Glasson [formed in January] are continuing with their complex investigation."

How we broke the story

Australia's largest art fraud was revealed by Eamonn Duff in The Sun-Herald and The Sydney Morning Herald. This is how his story unfolded:

January 18, 2009: Duff starts his investigation after a conversation with a woman trying to locate art bought from Ron Coles. She is not alone. Two Supreme Court actions had been instigated by clients who claimed he sold their paintings without passing on the proceeds. NSW police confirm three additional complaints. Mr Coles tells The Sun-Herald he is facing "financial difficulties in difficult times".

January 23: Police form a taskforce and raid his Kenthurst gallery and two family properties, seizing firearms and 404 paintings. Former employee Tania Howard says she quit in the late '90s after realising Mr Coles had sold her a fake James Thomas painting. " I noticed some of the bark on the trees was missing and some of the cows' heads were looking in different directions," she says.

January 25: When renowned artist Kevin Best dumps Mr Coles as his agent, Mr Coles hits back, allegedly commissioning an unknown artist to flood the market with cheap copies of Best's work. The artist's name is James Thomas but no such person exists. Best says: "He made the name up from my two boys, James and Thomas, to get back at me." A renowned industry insider confirms the tale.

February 1: Hundreds of complaints have by now been received, relating to tens of millions of dollars in lost art and money. Detectives reveal potential widespread forgeries relating to some of Australia's most celebrated artists. In further revelations, an auctioneer claims he and others were aware of valuable fakes, from Mr Coles, passing through auction rooms.

March 1: Fine art auctioneer Bonhams and Goodman opens its doors to give Duff an exclusive look at the 404 paintings seized by police. Asked to authenticate the collection, auctioneers find numerous forgeries of Arthur Streeton, Pro Hart, David Boyd and Norman Lindsay.

May 10: Duff is introduced to members of an outlaw bikie gang who are pursuing Mr Coles over a $1 million debt. The alleged deal was they delivered large sums of cash to his door, he legitimised it through investment art. One gang member says: "The plan is to bundle him in a car, take him for a ride and have a little chat."

May 17: Mr Coles taunts associates by claiming, through family members, there is little chance of a conviction. Then the bombshell: police announce there is sufficient evidence for a criminal case to proceed.

May 24: Duff unveils Norman Lindsay's Holding Court as the work that sparked Mr Coles's downfall. The original complainant, Dianne Allen, together with Matthew Doherty and Danny Taibel, had all bought the piece from Mr Coles and were adamant they owned it. Yet none were in possession of it and collectively they had handed him $120,000.