Bank Snared In Giant Art Fraud Mess

“San Francisco-based First Republic is one of the largest creditors of embattled New York dealer Lawrence Salander and his Salander-O’Reilly Galleries, accused in about two dozen lawsuits of defrauding customers and failing to repay tens of millions of dollars of debt. The bank has not been accused of wrongdoing. First Republic has lent a total of $59 million to Salander and his wife, Julie, his Upper East Side gallery and to an investment fund that said it arranged to buy all of Salander- O’Reilly’s Renaissance art.”