Guy Wildenstein, Art Family Patriarch, Found Guilty in Tax Trial

Guy Wildenstein, the international art dealer, was found guilty in France on Tuesday of massive tax fraud, the latest twist after years of legal entanglements that have unraveled the secrecy that once surrounded his powerful family dynasty.

Mr. Wildenstein, 78, the Franco-American patriarch of the family and president of Wildenstein & Co. in New York, was sentenced by the Paris Appeals Court to a four-year prison sentence, with half of it suspended, and the other half to be served under house arrest with an electronic bracelet. The court also sentenced him to pay a one million euro fine, or about $1.08 million.

He stood accused of hiding significant chunks of his family’s art collection and other assets in a maze of trusts and shell companies when his father, Daniel, died in 2001, and after his brother, Alec, died in 2008.

Prosecutors had said that he was trying to dodge hundreds of millions of euros in inheritance taxes. At the trial, which was held in the fall, they had requested a slightly more lenient prison sentence for Mr. Wildenstein, but they had also requested a much larger €250 million fine, or about $270 million.

The Wildensteins, a family of French art dealers spanning five generations, were historically secretive about the exact details of their collection, which has included works by Caravaggio, Fragonard and many other blue-chip artists.

Prosecutors said that the family was responsible for “the longest and most sophisticated tax fraud” in modern French history, by concealing art and other assets under complex foreign trusts and by shielding artworks worth millions of dollars in tax havens. By doing this, prosecutors said, the family grossly underestimated its enormous wealth when the time came to pay inheritance taxes.