i. Mr. Baltser Purchased Art from Sotheby's on Behalf of Steamort
As with Christie's, Mr. Baltser purchased art from Sotheby's on behalf of Steamort, signing invoices on behalf of the company as early as 2011.[1] The Baltser Account Representative told the Subcommittee that Mr. Baltser used Steamort to purchase items from Sotheby's.[2] She explained that it was common for purchasers to use various companies when purchasing art.[3] The Baltser Account Representative asserted Steamort preceded BALTZER LLP and she did not believe Steamort existed anymore.[4] She did not know why Mr. Baltser made the switch from Steamort to BALTZER LLP, but she thought that Mr. Baltser created BALTZER LLP around the time that he established his art agency. She also recalled that Mr. Baltser provided BALTZER LLP's incorporation and compliance due diligence documents to Sotheby's.[5]
ii. Mr. Baltser Approached Sotheby's on his Business Proposal with BALTZER LLP
In early 2013, Mr. Baltser also approached Sotheby's about a business proposal with his art agency. On February 11, 2013, the Baltser Account Representative emailed Sotheby's Chief Operating Officer in Europe, and other Sotheby's associates. (in pertinent part):
Level 1, top transacting Russian client, Mr. Gregory Baltser (Steamort Ltd) is setting up a private club in Moscow for his friends and clients, Russian oligarchs. This club's activity will be centered around auction house activities. He wants to involve the club members into buying at auctions.
Some of these clients have already started transacting through him.[6]
The Baltser Account Representative explained to the Subcommittee that Mr. Baltser's club would allow club members to view a live stream of an auction taking place outside of Moscow.[7] She also noted that using the word “oligarch" at the time meant a high net worth Russian individual.[8] She purposefully used the word "oligarch;" it was her job to sell Mr. Baltser's ideas to her superiors.[9]
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