Jackie Fine Arts Inc
Jackie Fine Arts Inc was a tax shelter entity controlled by Herman Finesod that sold overvalued art reproduction rights to investors, generating over $409 million in notes receivable before the IRS disallowed the deductions and nationwide civil litigation followed. Bernard Indyke served on its board, and the company was a Gold and Wachtel client, connecting it to the firm where Darren Indyke later represented Jeffrey Epstein.
Jackie Fine Arts Inc was a Pennsylvania-incorporated entity controlled by Herman Finesod through M and J Holding Corporation. The company acquired reproduction rights to works by Picasso and other artists at approximately $10,000 per master, then sold those rights to more than 2,000 investors at $225,000–$250,000 each, supported by appraisals valuing each master at $700,000–$750,000 1. By 1986 the company carried $409 million in notes receivable, and M and J Holding's 1986 tax return reported total assets of $1.33 billion 2. The IRS disallowed all resulting deductions; the Sixth Circuit affirmed in Rose v. Commissioner, 868 F.2d 851 (6th Cir. 1989), holding that the packages lacked economic substance 3.
The bellwether civil case, Faircloth v. Finesod, 938 F.2d 513 (4th Cir. 1991), resulted in jury findings of fraud, RICO violations, and civil conspiracy, with punitive damages of $5 million against Jackie Fine Arts, $2.5 million against Finesod, and $500,000 against appraiser Rose 4. A review of court records shows litigation across at least twelve federal and state courts from 1983 through 1992 5. Records indicate Finesod filed personal bankruptcy in the Western District of Pennsylvania in 1994 6. A German subsidiary, Jackie Fine Arts GmbH (Handelsregister HRB 58801, Munich), was separately registered and has since been removed 7. Bernard Indyke — father of Jeffrey Epstein's longtime attorney Darren Indyke — served as manager and board member of the company; Jackie Fine Arts was a client of Gold and Wachtel 8.
Financial Activity
The two appraisers, Rothschild and Rose, shared office space and administrative staff while producing valuations of $700,000–$750,000 per master against a $10,000 cost basis; Rothschild received a $50 kickback on each Rose appraisal 1. An unnamed Los Angeles law firm that provided tax shelter opinions to investors simultaneously received one percent of cash sales, a conflict undisclosed to the investors relying on those opinions 1. The IRS disallowed all claimed deductions, and the Sixth Circuit held in Rose v. Commissioner, 868 F.2d 851 (1989), that the packages lacked economic substance 3.
Bernard Indyke served as manager and board member of Jackie Fine Arts during its operating years 8. Gold and Wachtel represented the company as a client; Bernard's son, Darren Indyke, later joined the firm as an associate and became Jeffrey Epstein's primary attorney 8.
Legal Proceedings
Faircloth v. Finesod, 938 F.2d 513 (4th Cir. 1991), was the principal civil case. A jury found Jackie Fine Arts liable for fraud, civil RICO violations, and civil conspiracy. Punitive damages totaled $5 million against Jackie Fine Arts, $2.5 million against Finesod personally, and $500,000 against appraiser Rose, with attorney fees of over $615,000 4. Records indicate Finesod also faced personal suits and filed for bankruptcy 6, including Vigil v Finesod (DNM 1987) and Levi v Finesod (SDNY 1992), followed by personal bankruptcy in the Western District of Pennsylvania in 1994.
On the tax side, the IRS disallowed all deductions claimed through the art master packages. The Sixth Circuit affirmed the Tax Court in Rose v. Commissioner, 868 F.2d 851 (1989), ruling that the packages lacked economic substance and that participating investors had no honest profit motive 3.
Corporate Structure and Key Personnel
Bernard Indyke's role at Jackie Fine Arts placed him at Gold and Wachtel, the same firm where his son Darren Indyke later began his legal career and first represented Jeffrey Epstein as a client 8.
All Connections
1 total
All Connections
1 totalBernard Indyke (Darren Indykes father) served as manager and member of the board at Jackie Fine Arts Inc, a Gold and Wachtel client that ran tax shelter fraud selling overvalued art master reproduction rights. Herman Finesod founded Jackie Fine Arts.
All Findings
8 total
All Findings
8 totalfinancial (3)
Jackie Fine Arts sold 2000+ art masters at 225-250K each actual value 10K with 409M in notes receivable
Per Faircloth v. Finesod 938 F.2d 513 (4th Cir 1991): Jackie Fine Arts Inc wholly owned by M and J Holding Corporation owned by Herman Finesod. M and J 1986 tax return showed assets of 1.33 billion. Jackie sold over 2000 art masters at 225K-250K average price. Actual cost per art master approximately 10K. In 1986 Jackie held 409 million in notes receivable from buyers. Fraudulent independent appraisals by Sigmund Rothschild (250/appraisal) and F Peter Rose (150-300 each plus 50 kickback to Rothschild) valuing masters at 700K-750K. An LA law firm wrote tax opinion while secretly receiving 1 percent of cash from sales.
Jackie Fine Arts art master scheme: bought Picasso reproduction rights via Paraselenes SA (Marina Picasso company) through AMI for roughly 10K per master. Sold to investors at 225-250K with fake independent appraisals from Rothschild (750K) and Rose (700K) who shared office and secretary. LA law firm gave tax opinion while secretly receiving 1 pct of sales. 2500 total appraisals produced.
Jackie Fine Arts Inc was a Gold and Wachtel client that ran a massive tax shelter fraud scheme. Founded by Herman Finesod (called King of Tax Shelters). Sold art master reproduction rights - copies of famous paintings purchased for approx 10K each - to over 2000 investors at 225K-250K each with fraudulent independent appraisals at 700K-750K. Appraisers Sigmund Rothschild and F Peter Rose shared an office and secretary (undisclosed). IRS disallowed the tax shelters. Finesod hit with 4.3M+ judgment for fraud RICO and civil conspiracy (Faircloth v Finesod 938 F.2d 513, 4th Cir 1991). Bernard Indyke (Darren Indykes father) was manager and board member of Jackie Fine Arts.
legal (4)
Jackie Fine Arts Inc faced lawsuits across at least 8 federal districts 1983-1992: Turner v JFA (SD CA 1983), Menish v JFA (CD CA 1984), Ross v JFA (D SC 1985), Westheimer v Finesod (SD TX 1986), Nichols v JFA (D ME 1987), Bergin v JFA (D MN 1987), Faircloth v JFA (ED NY and SD FL 1989), Ross v JFA (SD CA 1990-1992), Burch v JFA (ED NY 1992). Founder Herman Finesod personally sued: Vigil v Finesod (D NM 1987, multi-district), Levi v Finesod (SD NY 1992), bankruptcy (WD PA 1994). Entity sold low-value art reproduction rights to wealthy buyers as calculated tax dodge.
IRS disallowed all Jackie Fine Arts art master tax deductions. Rose v Commissioner 868 F.2d 851 6th Cir 1989 ruled art master packages lacked economic substance and were generic tax shelters. Tax court found investors had no honest profit motive. Nationwide lawsuits arose: at least 10 separate federal cases across SC AL MN ME CA FL NY districts from 1983-1992.
Jackie Fine Arts sold 2000+ art masters at 225-250K each that cost only 10K. 409M in notes receivable by 1986. Jury found fraud RICO civil conspiracy. 5M punitive against JFA, 2.5M against Finesod, 500K against Rose. Total judgment exceeded 4.3M plus 615K attorney fees. Faircloth v Finesod 938 F.2d 513 4th Cir 1991.
Jackie Fine Arts generated nationwide litigation in at least 10 federal districts and multiple state courts
CourtListener search reveals Jackie Fine Arts was sued in at least 12 separate federal and state courts: D. South Carolina (Faircloth Ross), D. Minnesota (Bergin), D. Maine (Nichols), C.D. California (Ross Menish), S.D. California (Turner Ross Gray Cary), E.D. New York (Faircloth transfer Burch Cracchiolo), S.D. Florida (Faircloth), Arizona Court of Appeals (Daggett), Wyoming Supreme Court (McGreal), Alabama Supreme Court (Berkowitz), 6th Circuit (Hoops v Hudson). Related Finesod cases in D. New Mexico (Vigil), S.D. Texas (Westheimer), and S.D. New York (Levi). The Terra-Drill Partnerships Securities Litigation (MDL No. 791) was also a Finesod vehicle.
identity (1)
Jackie Fine Arts GmbH registered in Munich Germany (Handelsregister HRB 58801). Status: removed. This shows JFA had international operations beyond the US, including a German subsidiary. OCCRP Aleph confirmed via German companies registry OpenCorporates scrape.