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BROOKLYN — Federal authorities have announced that Erwin Bankowski, 50, and Karolina Bankowska, 26, both of Lawrence, New Jersey, pleaded guilty in federal court to charges stemming from a large-scale counterfeit art scheme that defrauded buyers of millions of dollars.
The defendants pleaded guilty before U.S. District Judge Nicholas G. Garaufis to wire fraud conspiracy and misrepresentation of Native American produced goods and products.
According to federal prosecutors, the scheme operated from 2020 through 2025 and involved the creation, marketing, and sale of more than 200 counterfeit artworks falsely attributed to well-known artists, including Andy Warhol, Pablo Picasso, Banksy, Raimond Staprans, Richard Mayhew, and Native American artist Fritz Scholder.
Federal authorities stated that the defendants generated false provenance records to support the fraudulent sale of the counterfeit works. These records included fabricated ownership histories, claims of prior placement in private collections, and references to galleries and corporations that were no longer in operation, making verification difficult for buyers and institutions.
Investigators determined that the defendants also created forged authentication materials to support the deception. This included the use of custom-made stamps designed to replicate gallery markings and certificates of authenticity. The defendants applied these fabricated elements to aged materials to create the appearance of legitimacy.
The counterfeit works were consigned to galleries and auction houses across the United States, where they were offered for sale to collectors for prices reaching as high as $160,000 per piece. Federal authorities confirmed that victims were defrauded of at least $2 million through these transactions.
In addition to defrauding art buyers, the scheme included the sale of counterfeit works falsely attributed to Native American artists, triggering federal charges under statutes designed to protect the authenticity and economic integrity of Native American art and cultural products.
The investigation involved coordination between the Federal Bureau of Investigation New York Field Office, the U.S. Fish and Wildlife Service Office of Law Enforcement, and the Department of the Interior’s Indian Arts and Crafts Board. Authorities traced financial transactions, analyzed artwork materials, and examined documentation used to support fraudulent provenance claims.
Federal officials stated that the scheme undermined both the commercial art market and protected cultural markets by introducing counterfeit works supported by falsified documentation and deceptive authentication practices.
The defendants face a maximum sentence of 20 years’ imprisonment. Restitution is expected to exceed $1.9 million. Sentencing will be scheduled at a later date.
The case is being prosecuted by the Public Integrity and General Crimes Sections of the U.S. Attorney’s Office for the Eastern District of New York.
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It is interesting that people can still get away with things like this. These crooks must have known a lot about the art world. Instead of turning that into some sort of living, they took the “short-cut.” So many short-cuts become long-cuts. Now they are looking at prison and a large restitution charge. I hope these people change during their prison time.
Thank you for today’s articles, John. Lots going on out there and I appreciate being kept up to date! I hope you have a great evening and God bless you and yours always!
You’re very welcome, Chris.
You’re right to point out the level of knowledge involved. Schemes like this don’t happen without a working understanding of the art world, especially when it comes to provenance, authentication, and how buyers evaluate pieces. That’s what makes the decision to misuse that knowledge stand out.
Your point about short-cuts is accurate. What looks like a faster path often carries long-term consequences, and in cases like this, those consequences are significant.
The impact goes beyond financial loss as well. Fraud of this kind affects trust across the market, especially when it involves cultural works and established artists.
I understand what you’re saying about change. Time will tell how that plays out, but for this father-and-daughter partnership in crime, accountability is now in place.
Thank you again, Chris. I appreciate your continued support. I hope you have a great evening as well and a great day ahead. 😎
You’re welcome, John, and thank you for this response and these interesting points. I can see how fraud of this kind would affect trust across the market. Another sad fact of this case is the father-daughter connection. Something that should be a most valuable relationship is marred by this kind of collaboration. I guess they will have to do time at the same time.
Thank you for your kind words, John, and I hope you have a great evening and great day ahead as well! 😊