Basquiat Works at Centre of Vancouver Fraud Lawsuit

A major collection of contemporary art worth C$6.9m (US$4.9m) , including four paintings by Jean-Michel Basquiat, has emerged as one of the more unusual assets caught up in the collapse of Vancouver property developer Coromandel Properties.

The case, before the Supreme Court of British Columbia, was brought by investor Junchao Mo and members of his family against Coromandel's chief executive and co-owner, Jerry Zhong. The plaintiffs allege investment funds were diverted into property purchases and a 14-work art collection, which was later used as collateral for a line of credit worth up to C$3.3m. Zhong denies the allegations.

According to court filings, the collection includes four works by Javier Calleja alongside paintings by Rashid Johnson, George Condo, Sam Gilliam, Tania Marmolejo, Tammi Campbell and Jordy Kerwick. The claim also alleges the works "were never displayed" after they were acquired.

The proceedings returned to court this month after one of the defendants successfully applied to have the case heard alongside two related lawsuits. Lawyers acting for both sides declined to comment while litigation continues. Neither the Centre of International Contemporary Art Vancouver (CICA), identified in court documents as one of the sellers, nor its executive director responded to requests for comment.

The case highlights the growing use of art as collateral for borrowing, a practice that has expanded as specialist lenders and auction houses have developed art-backed finance products for high-value collections.

Coromandel was previously a sponsor of exhibitions at the Vancouver Art Gallery and the city's Cherry Blossom Festival. The location of the artworks has not been disclosed in the court proceedings.