Two Individuals Plead Guilty to Prolific Counterfeit Art Scheme

Earlier today, at the federal courthouse in Brooklyn, Erwin Bankowski and Karolina Bankowska pleaded guilty to wire fraud conspiracy and misrepresentation of Native American produced goods and products. The proceeding was held before United States District Judge Nicholas G. Garaufis. When sentenced, the defendants face a maximum sentence of 20 years' imprisonment, as well as restitution of at least $1.9 million.

Joseph Nocella Jr., United States Attorney for the Eastern District of New York; James C. Barnacle, Jr., Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); Doug Ault, Assistant Director, U.S. Fish and Wildlife Service (USFWS); and Meredith Stanton, Director, U.S. Department of Interior, Indian Arts and Crafts Board, announced the guilty pleas.

"For years, these defendants painted themselves as purveyors of fine art while selling lies on canvas to unsuspecting collectors," stated United States Attorney Nocella. "Today's convictions strip away the varnish and reveal the fraud underneath."

Mr. Nocella expressed his appreciation to the, Office of Law Enforcement-Indian Arts and Crafts Investigations for their work on the case.

"These two individuals didn't just sell counterfeit art - they undermined trust, exploited buyers, and attempted to profit from fraud. In this instance, the FBI with its partners has made it clear that those who manipulate the market for personal gain will be caught and held accountable," stated FBI Assistant Director in Charge Barnacle.

"This artwork scheme doesn't just cheat buyers. It steals from Native American artists and undermines the integrity of an entire cultural marketplace. These offenders also produced fake works attributed to well-known artists like Pablo Picasso, Andy Warhol, Banksy, and Native American Luiseño artist Fritz Scholder," stated USFWS Assistant Director Ault. "Selling fake native America art is a serious crime, and our Special Agents investigate these cases to hold offenders accountable and protect authentic Indian artists, their work, and their livelihoods."

"Due to the outstanding work of the U.S. Attorney's Office - Eastern District of New York, FBI - New York Field Office, and U.S. Fish and Wildlife Service - Indian Arts and Crafts Act Investigative Unit, the defendants are being held accountable and the message is clear. For those selling counterfeit Indian art it is important to know that wherever you are we will diligently work to find you and hold you accountable," stated Indian Arts and Crafts Board Director Stanton.

From 2020 through 2025, the defendants, who are father and daughter, conspired to consign for auction over 200 counterfeit artworks (the "Counterfeit Works"). The Counterfeit Works were allegedly painted by famed artists, including Andy Warhol, Pablo Picasso, Banksy, Raimond Staprans, Richard Mayhew, and Native American artist Fritz Scholder. To make some of the Counterfeit Works appear to be legitimate, the defendants generated false histories of prior custody and ownership, also known as provenance. To do so, they conducted research to represent falsely that some of the Counterfeit Works had been in private collections of individuals associated with the artists, had been owned by since-closed art galleries, or had been in the private collections of corporations that were no longer in operation. The defendants chose galleries and corporations that were no longer operating to make it difficult for galleries and potential buyers to verify the purported provenance of the Counterfeit Works. In some instances, to further bolster the purported provenance of the Counterfeit Works, the defendants created and affixed forged stamps from art galleries to some of the Counterfeit Works, which they created by purchasing antique books to imprint custom-made stamps of forged certificates of authenticity onto aged paper, and then affixed to the Counterfeit Works.

The defendants consigned the Counterfeit Works to art galleries and auction houses throughout the United States, which then attempted to auction the Counterfeit Works for sale to buyers for prices of up to $160,000. Over the course of their scheme, the defendants defrauded victims at least $2 million, including through selling the following examples of Counterfeit Works:

The government's case is being handled by the Office's Public Integrity and General Crimes Sections. Assistant United States Attorney Sean M. Sherman is in charge of the prosecution, with assistance from Paralegal Specialist Johnson Peow.

The Defendants:

ERWIN BANKOWSKI
Age: 50
Lawrence, New Jersey

KAROLINA BANKOWSKA
Age: 26
Lawrence, New Jersey

E.D.N.Y. Docket No. 26-CR-90 (NGG)