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American Royal Arts Corp. and Jerry Gladstone Sued by Beatles Expert Frank Caiazzo [Apr. 13 Update]

Case settled. Read report on settlement here:

http://live.autographmagazine.com/profiles/blogs/jerry-gladstone-an...

NEW YORK, Sept. 23, 2010: Beatles autograph expert and authenticator Frank Caiazzo filed suit today against memorabilia dealer American Royal Arts Corp. and its president, Jerry Gladstone.

"Frank Caiazzo v. American Royal Arts Corp. and Jerry Gladstone" was filed Thursday morning, Sept. 23, in the New York State Supreme Court, Nassau County.

According to the suit, Caiazzo seeks to recover compensatory damages, punitive damages and legal fees of no less than $500,000. The causes of action listed in the suit include: Defamation, Trade Libel, Tortious Interference with Prospective Economic Advantage, and Prima Facie Tort.

Caiazzo's damages claimed in the suit revolve around a lawsuit American Royal Arts filed against him in Florida for calling a Revolver album they sold as signed by the Beatles a forgery. After almost three years, that case hasn't moved beyond a battle over jurisdiction. Last fall the Lower Court ruled that Florida was the proper venue for the case, and Caiazzo has appealed the decision.

Ironically, American Royal Arts' lawsuit against Caiazzo caught the attention of the New York Office of the FBI, which launched a criminal investigation into Jerry Gladstone and a number of his associates, including American Royal Arts' autograph suppliers and authenticators, over the suspected trafficking in forged autographs and memorabilia. The investigation is ongoing.

On August 14, 2010, American Royal Arts filed for an "Assignment for the Benefit of Creditors," a Florida form of corporate dissolution similar to a Chapter 7 Bankruptcy in United States Bankruptcy Court. According to reported deposition testimony by American Royal Arts VP Agnes Palmer, inventory unsalable due to the FBI investigation was one of the leading reasons for the filing.

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Blog Update Sept. 26: Revolver Revealed

The album above is the Revolver album purportedly signed by the Beatles that American Royal Arts sued Frank Caiazzo over for calling a Southern California forgery. Jerry Gladstone never posted the album online and it was not attached as an exhibit to the lawsuit.

We don't know anyone who has seen the Revolver album since the suit was filed. While not a trusted source, one of American Royal Arts' authenticators, Mike Frost of P.A.A.S., told us that he asked to see the Revolver album and Gladstone refused to even show it to him.

See the related story: Beatles-Signed Abbey Road Albums: What's Real? What's Fake?

Tags: American, Arts, Beatles, FBI, Revolver, Royal, caiazzo, forgeries, gladstone, jerry, More…lawsuit

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Comment by James R. Altmann on September 24, 2010 at 9:42pm: Restoring his name? When was it ever in doubt? Every single serious autograph collector knew from the get go what Gladstone was trying to do. Looks like he picked on the wrong DBA. It appears Mr. Caiazzo is about to serve up a little well deserved justice to ConMan #1. If anyone has ever seen the Revolver in question, it is one of the most vestigial attempts at a Beatles set one would ever see. Mr Caiazzo's name or reputation was never in question.

Comment by DB on September 25, 2010 at 2:22pm: So if they achieve dissolution what assets are left to recover? Going to be some interesting legal games being played with the assets and legal expenses might never be recovered. Now we have to start tracking down yet another bevy of items floating around from ARA, just ducky. At least Frank get's gloating rights but watch it resurfaces as something else.

Comment by Steve Cyrkin, Admin on September 25, 2010 at 3:45pm: DB, Frank's not gloating. He went through three years of hell and legal fees due to Gladstone--one of the most dishonest, devious and downright evil people I've ever known.

American Royal Arts dealt in more than fake autographs. They also offered fake and misrepresented unsigned memorabilia. Like a fake, supposedly stage-played Eddie Van Halen Frankenstein guitar that Eddie's people called them out on. Gladstone took it down, saying he got it from Brian Slaven at Autograph Central.

One of their customers who spent $90,000 bought a supposed Hendrix and the Experience note, framed along with a concert poster that was sold as a first edition. The difference is obvious...the second edition has a border. First editions are worth about $6,000, and second editions about $300. When he opened the frame to send the album to an authenticator, he found that the poster was framed to hide the border--it was a second edition!

Not only that, the poster was GLUED to a foam backing, rendering it virtually worthless even if it was a first edition.

As for the dissolution, Gladstone signed a sworn statement there was only $25,000 in inventory, and the administrator said that 75% of it was unsalable due to being fake or being held at the FBI's direction. Yet the ARA galleries visited had hundreds of thousands in inventory on the walls.

Oh...and Global Liquidators, the only company who made a bid on ARA's assets so far? The company was formed on July 16. When I called to inquire about it the person listed on the court documents clammed up when I asked if Jerry Gladstone was involved in the company and said she'd have to refer my questions to the the attorneys...who never called back.

But it was stated in a prior, unfiled version of the dissolution papers that Gladstone intended to acquire the assets of American Royal Arts and keep operating the business. The "bankruptcy" just looks like a way for Jerry Gladstone to get rid of all those annoying people looking for refunds under ARA's guarantee that might pop up over the years.

Who can blame him?

Comment by scott on September 25, 2010 at 4:21pm: Rock Star Gallery has a nice looking GN'R signed guitar that was played. That would be really cool if it was. It seems like someone should tell Mr. Dunn that it is Izzy Stradlin and not Izzy Reed.

http://www.rockstargallery.net/view_products_detail.php?p_id=4248

Someone played the GN'R signed guitar I purchased from Rock Star Gallery after it was signed. You can see the scratch marks over Izzy's paint pen signature. I wonder if one of the band members played it?

Best of luck to Mr. Caiazzo.

Comment by BallroomDays67 on September 25, 2010 at 4:37pm: Steve, Was it the 8/19/67 Earl Warren Showgrounds poster? They currently have a poster for a 7/1/67 Hendrix show at the same venue. It too is being offered as a "first edition", but it appears to be a reprint.

Comment by Steve Cyrkin, Admin on September 25, 2010 at 4:38pm: I may have said something in my last post that's not exactly right. This is the paragraph:

"As for the dissolution, Gladstone signed a sworn statement there was only $25,000 in inventory, and the administrator said that 75% of it was unsalable due to being fake or being held at the FBI's direction. Yet the ARA galleries visited had hundreds of thousands in inventory on the walls."

The papers filed, which included a notarized declaration by Jerry Gladstone, said there was only $25,000 in inventory, of which 75% was unsalable due to fraud committed against American Royal Arts by one of their suppliers (presumably Gallery of Dreams). I don't have the papers in front of me to assure that my wording before was completely accurate. I'll post the court documents probably tomorrow so you can see for yourself.

And I'll talk about the FBI investigation.

Comment by Steve Cyrkin, Admin on September 25, 2010 at 4:53pm: Ballroom, the COA calls it an August 19, 1968 Earl Warren Showgrounds poster, and it's a different design than the one one their site right now. But now that you brought it up, we do suspect it's likely that we'll find a lot of reproductions among their valuable posters.

And how do you explain that?

Comment by DB on September 25, 2010 at 5:14pm: Steve, 3 years of legal wrangling and costs! Is it any wonder that people just say "screw it" as it isn't worth the investment of time and money to bring them down! Like Stan's Sporting Good's inventory that has and will continue to turn-up with different coas.

If Gladstone however has knowingly falsified bankruptcy filings emergency motions can be filed and liens requested.

perhaps a better word is relief although after 3 years there are some choice italian words more applicable.

Comment by BallroomDays67 on September 25, 2010 at 5:16pm: Steve, it is indeed a different design. They got the year wrong. It was actually 1967. Unfortunately, unlike say the Fillmore and Avalon Ballroom posters, the printing history of the Earl Warren posters isn't well documented. I've seen reputable sellers offer reprints as originals. That said, framing the 8/19/67 poster to hide the border certainly doesn't sound good.