New York art dealer accused of fraud and deceptive trade practices


Judge Nicholas Garaufis of the U.S. District Court for the Eastern District of New York | US Senate Judiciary Committee (Wikipedia Commons)

A New York art dealer her been accused of breach of contract and deceptive trade practices. Plaintiff Ann Fitzpatrick has filed a complaint against Mark Borghi, alleging that he failed to remit full payment for a Joan Mitchell painting sold under a consignment agreement.

According to the complaint, Borghi, an art dealer based in Sag Harbor, New York, solicited Fitzpatrick’s painting in 2024 for consignment through his Bridgehampton gallery. The agreement reportedly set the sale price at $195,000. Fitzpatrick claims that Borghi later reported the painting had sold for $173,500 but only paid her $80,000. Despite repeated assurances, she alleges that no further payments were made.

The lawsuit accuses Borghi of breaching the consignment agreement and misusing the funds for personal expenses, including mortgage-related taxes. Fitzpatrick is seeking damages of at least $93,500, plus interest dating from December 7, 2024, which she identifies as the date of the sale. She also requests an accounting of the sale proceeds and suggests the painting may have sold for more than disclosed.

In addition to breach of contract, the complaint includes claims of fraud and violations of New York General Business Law § 349, citing alleged deceptive trade practices. Fitzpatrick contends that Borghi misrepresented his ability to remit payment promptly and made false statements to delay or avoid payment. As a result, she is seeking treble damages under GBL § 349 and reimbursement for legal fees.

The plaintiff is represented by attorney Aaron M. Goldsmith of The Gold Law Firm. The case was filed in the United States District Court for the Eastern District of New York under Case ID 2:25-cv-03600.

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