BRIAN ROSS UNIT / BRS / FAMILY SECRETS SECRETS OF ONE OF THE WORLD'S RICHEST FAMILIES
CS VO ON EXTREMELY WEALTHY, ART DEALING FAMILY SECRETS REVEALED IN BITTER DIVORCE
SEGMENT [3] 1998/01/21 ************************************************
KEYWORDS: DOGS; FRANCE; INCOME TAX; JUDAISM; LOOTING; LOST; MUSEUMS; PAINTING; PARIS; PHOTOGRAPHY; PLASTIC SURGERY; PRIMETIME LIVE; PRINCETON UNIVERSITY; UNIVERSITIES; US DOLLAR; WORLD WAR I (1914-18)
22:14:52
DIANE SAWYER
OK, we're going to take you tonight now into a very different world,
a world where a family's wealth is measured in billions -- not in
millions, in billions. This is a family which made its fortune
dealing in art and owns some of the world's masterpieces.
And it was an extravagant lifestyle lived largely in private until
recently, until a bitter divorce battle began peeling away the veil
of secrecy. As chief investigative correspondent Brian Ross reports
now, it is a story of scandal, of priceless treasures and perhaps of
the harsh judgment of history.
(Dogs barking)
BRIAN ROSS, ABC NEWS
(VO) For almost 20 years, this woman has been a member of one of the
world's richest families -- the Wildensteins, a family of great art,
great power and great secrecy.
JOCELYNE WILDENSTEIN
You know, when I enter this family, it was the established rule. So
you get used to this all secrecy around you.
BRIAN ROSS
(on camera) That was the established rule?
JOCELYNE WILDENSTEIN
Yes.
BRIAN ROSS
Total secrecy?
JOCELYNE WILDENSTEIN
Total secrecy.
BRIAN ROSS
(VO) Her name is Jocelyne Wildenstein, a woman in crisis whose
decision to break the family rule of secrecy in an ugly divorce
battle has put her privileged life in jeopardy and held her up to
public humiliation.
It's been all over the news in New York, where she and he husband,
Alec Wildenstein, have been fighting it out in divorce court, with
much of the focus on Jocelyne Wildenstein's unusual exotic appearance
-- the results, her husband has said, of excessive plastic surgery,
which has dramatically changed her looks from the days she was a
young Swiss beauty.
JOCELYNE WILDENSTEIN
I have nothing to say about it.
BRIAN ROSS
(on camera) And when your husband would say you were addicted to
plastic surgery, you had -- you kept going?
JOCELYNE WILDENSTEIN
Because he has nothing else to say against me. During the 19 years
of marriage, he has nothing to tell against me.
BRIAN ROSS
(VO) And now, the bitter divorce and the tabloid tales of plastic
surgery have put quite a focus on a family that operates in the
shadows behind well - guarded walls in Paris and New York as perhaps
the world's preeminent art dealers -- a family with lots of secrets,
dark secrets that go back generations. Secrets we found in our
PrimeTime investigation the people at the Wildenstein galleries don't
like to talk about.
AUCTION BIDDER
I have $17 million. Now at $17 million.
BRIAN ROSS
(VO) A family little - known outside high society, high - priced art
circles, the Wildensteins are rarely seen at big, public auctions,
but they are a powerful presence behind the scenes.
SOTHEBY'S AUCTIONEER
Sold at $19 million.
BRIAN ROSS
(VO) Led by 80 - year - old Daniel Wildenstein, the family buys and
sells masterpieces for a clientele of the rich and famous and is
itself worth not millions, but billions.
JOCELYNE WILDENSTEIN
I mean, they are doing very well. They have the biggest, you know,
art collection in the world.
BRIAN ROSS
(on camera) The biggest art?
JOCELYNE WILDENSTEIN
The biggest art collection in the world. Yeah, they do definitely.
BRIAN ROSS
(VO) Jocelyne Wildenstein greeted us in the spectacular New York
City mansion which she says has been their family's home for 19
years.
JOCELYNE WILDENSTEIN
How nice to see you. It's a pleasure.
BRIAN ROSS
(on camera) Show me around this grand room. Tell me all about it.
(VO) Wearing a designer outfit and some of her $10 million worth of
jewelry, she showed us around what is known as the Bonnard room, in
defiance of her husband's orders that no photographs were to be taken
in this room.
(on camera) And this your living room?
JOCELYNE WILDENSTEIN
This is my living room, yes.
BRIAN ROSS
(VO) The art in this room alone is worth a small fortune, including
10 paintings by post Impressionist artist Pierre Bonnard.
(on camera) And this is tens of millions of dollars worth of art in
this one room?
JOCELYNE WILDENSTEIN
Yes.
BRIAN ROSS
(VO) And that's just New York. The family's wealth from the art
business provides a life of luxury and splendor with properties
around the world. There's a chateau outside Paris. The Wildensteins
have their own thoroughbred stables in France, a private jet, a
Caribbean retreat that sleeps 22 and Mrs Wildenstein's favorite
getaway, a 66,000 - acre ranch in Kenya.
JOCELYNE WILDENSTEIN
We have 56 lake.
BRIAN ROSS
(VO) Jocelyne Wildenstein says she has spent as much as $1 million a
month to keep all the households going. But, she says, in the 19
years she and her husband have lived in New York, they have never
filed state or federal income tax returns.
(on camera) In those years, did you ever pay US taxes? Did you ever
sign an IRS tax return?
JOCELYNE WILDENSTEIN
No.
BRIAN ROSS
You never did?
JOCELYNE WILDENSTEIN
No.
BRIAN ROSS
A New York state tax return?
JOCELYNE WILDENSTEIN
No.
BRIAN ROSS
So you've paid no tax at all?
JOCELYNE WILDENSTEIN
Not on my knowledge, no.
BRIAN ROSS
Did anyone ever tell you that you might owe a few dollars in back
taxes?
JOCELYNE WILDENSTEIN
No. No, definitely not.
BRIAN ROSS
(VO) Jocelyne's husband, Alec Wildenstein, declined to speak with
us. He did offer to clean off our camera lens. His lawyers have
acknowledged in court that he does not pay US taxes because he is not
a US citizen and does not consider himself a US resident.
The case has become so ugly the Wildensteins tried to kick Jocelyne
out of the house until a judge stopped them. But the Wildensteins
have cut her off in some ways that only the rich can do.
JOCELYNE WILDENSTEIN
The staff is allowed to cook for the dogs, and the medical is paid
for the dogs.
BRIAN ROSS
(on camera) The staff can cook for the dogs?
JOCELYNE WILDENSTEIN
Yes. The staff can cook for the dogs. And they can pay, they pay
the medical for the dogs.
BRIAN ROSS
Can they cook for you?
JOCELYNE WILDENSTEIN
No. They cannot cook for me.
BRIAN ROSS
Do they pay your medical bills?
JOCELYNE WILDENSTEIN
No.
BRIAN ROSS
(VO) At the same time, Alec Wildenstein reportedly has spent several
hundred thousand dollars on his new 20 - year - old girlfriend, a
Russian model seen with Wildenstein recently at a French racetrack.
JOCELYNE WILDENSTEIN
You know, you can be part of the family. You can shine with the
family for 20 years, and one day if you're not part of this family,
you are ejected out. Totally out.
BRIAN ROSS
(VO) The tales from the divorce come at a time when the Wildenstein
empire is already under a cloud, a much more serious cloud because of
other secrets now coming out -- secrets about a time when the Nazis
occupied Paris, a time when other Jewish art dealers lost everything.
But the Wildenstein family patriarch, George Wildenstein, somehow
kept the family art gallery going.
HECTOR FELICIANO, JOURNALIST
The legacy of George Wildenstein creates problems.
BRIAN ROSS
(VO) Hector Feliciano, the author of the ground - breaking book "The
Lost Museum" about the Nazi looting of art from Jewish families,
discovered George Wildenstein's name in long - forgotten World War II
archives.
HECTOR FELICIANO
According to this report, there is no doubt that George Wildenstein
did collaborate with the Germans. And ...
BRIAN ROSS
(on camera) He was Jewish.
HECTOR FELICIANO
Yeah. But this -- this didn't matter. Because he managed, through
his contacts, to collaborate, and he managed to save his gallery.
And his gallery dealt also in looted art.
BRIAN ROSS
(VO) The report, prepared for American intelligence and based on an
interrogation of Hitler's art dealer, Karl Haberstock, recounts how
George Wildenstein made a deal with the Nazis to keep his art gallery
open, by turning it over to a non - Jewish associate who would make
it his business to discover important collections for the Nazis,
which experts say almost certainly included Jewish collections.
HECTOR FELICIANO
The problem is that he did go beyond saving his gallery. He not only
saved his gallery, but he kept working on with the Nazis.
BRIAN ROSS
(on camera) Why do you think George Wildenstein would do that?
HECTOR FELICIANO
He just wanted to buy and sell. To him, they were just new clients.
BRIAN ROSS
The Nazis were just new clients?
HECTOR FELICIANO
Yes, I think this is it.
BRIAN ROSS
(VO) Until the report came out, Wildenstein had been thought to be a
victim of the Nazis, forced to flee to New York, where he had
publicly criticized those who collaborated with the Nazis at the very
time the Paris gallery was brokering art for Germans.
EDGAR BRONFMAN, WORLD JEWISH CONGRESS
I feel very deeply about the fact that people should not profit from
the ashes of the Holocaust.
BRIAN ROSS
(VO) As head of the World Jewish Congress, Edgar Bronfman led the
effort to identify gold stolen by the Nazis, and now he wants to do
the same thing with art stolen by the Nazis from Jewish families.
EDGAR BRONFMAN
What the Nazis did, they didn't just take their gold and their
paintings and their property, they also took their identities.
BRIAN ROSS
(VO) Bronfman was outraged when we showed him the World War II files
on George Wildenstein.
EDGAR BRONFMAN
Shame on him. That's all. Shame on him.
BRIAN ROSS
(on camera) Shame on him?
EDGAR BRONFMAN
Yes, absolutely.
BRIAN ROSS
Why?
EDGAR BRONFMAN
Because he was helping the enemy. He was helping people who had
stolen art from his people to conceal it or get rid of it or do
whatever. He was an accessory before and after the fact. I mean,
it's shameful.
BRIAN ROSS
(VO) But the questions for the Wildensteins today don't stop with
George, dead since 1963. There are new questions about art stolen by
the Nazis and discovered only last year in the Wildenstein gallery in
New York City -- a rare set of handwritten Medieval manuscripts worth
millions.
PROF JAMES MARROW, PRINCETON UNIVERSITY
I was told by the Wildensteins I was the first person scholar --
allowed to see these manuscripts.
BRIAN ROSS
(VO) It was James Marrow, a professor at Princeton, who made the
startling discovery after he was called in to appraise the
manuscripts for a possible sale.
JAMES MARROW
The Nazi documentation I have seen says that these manuscripts were
stolen from the home of Alfonse Kann.
BRIAN ROSS
(VO) Alfonse Kann was a prominent Jewish art collector whose
priceless collection was seized from his French estate in 1940 by the
Nazis, each item recorded with a KA for Kann in a detailed Nazi
inventory, including the manuscripts now in the Wildensteins'
possession -- KA - 879 through KA - 886.
FRANCIS WARRIN, KANN'S NEPHEW
I knew that they were in the Wildenstein family, but I didn't have
any proof.
BRIAN ROSS
(VO) But now, even with the proof, Francis Warrin, the nephew of
Alfonse Kann, says the Wildensteins are still refusing to turn over
the manuscripts, which Warrin says the Wildensteins wrongly claimed
after the war once his uncle was dead.
FRANCIS WARRIN
I'm not there to judge the behavior of the people. That would be to
the court to do. What I say is this belongs to us, and we want to
get it back.
BRIAN ROSS
(VO) It's one more blight on the name of Wildenstein, something
Daniel Wildenstein refused to talk to us about until we showed up one
morning outside his apartment in Paris.
(on camera) We have tried to get a hold of you to ask you some
questions about art stolen by the Nazis.
DANIEL WILDENSTEIN
What do you want to know?
BRIAN ROSS
Well, is there any such art in the possession of the Wildenstein
family now?
DANIEL WILDENSTEIN
No.
BRIAN ROSS
What about those manuscripts?
DANIEL WILDENSTEIN
That's a stupidity. Those manuscripts are owned by us.
BRIAN ROSS
You own them?
DANIEL WILDENSTEIN
They are owned by us since 1903.
BRIAN ROSS
But the Nazis recorded them as being taken from the Kann family.
DANIEL WILDENSTEIN
Absolutely not.
BRIAN ROSS
It is on the inventories. Have you seen those?
DANIEL WILDENSTEIN
It's not -- there is no inventory. It's a stupidity, and it means
absolutely nothing.
BRIAN ROSS
(VO) And Wildenstein was just as quick to dismiss any suggestion his
father had helped protect and expand the family fortune by
collaborating with the Nazis during the war
DANIEL WILDENSTEIN
Which is not true.
BRIAN ROSS
(on camera) It is not true?
DANIEL WILDENSTEIN
No.
BRIAN ROSS
(VO) But now, after years of denials and secrets, 1998 could be the
year of reckoning for the Wildensteins. There is the divorce case
between Jocelyne and Alec being played out in the papers and in
court, serious charges about works of art turning up in the vaults of
the Wildensteins' New York City gallery and growing questions for the
Wildensteins of today about what happened more than 50 years ago when
the gallery did business with the Nazis.
EDGAR BRONFMAN
I think they have to search their souls and fess up. If that whole
family fortune is based on this, that's wrong.
DIANE SAWYER
And beyond this story, the World Jewish Congress estimates that some
55,000 works of art, stolen by the Nazis in France alone, were never
returned to their owners after the war and may be hanging in
galleries around the world, including in the United States.
ANNOUNCER
These parents had to go to court for the right to raise their teenage
son as they see fit.
SUE VAN BLARIGAN
We wanted to help David for his entire life.
ANNOUNCER
But does tough love have its limits? An exclusive interview, when
PrimeTime continues.
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ANNOUNCER
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