International Scandal of Systemic Violin Racketeering
RIN:420

"It has been estimated that about 90% of string teachers, directors of orchestras and music administrators in schools and universities are employed on a 'commission' basis (i.e. kick-backs)."

In the opinion of Mr. Graham Wells (founder of Sotheby’s auction’s musical instrument department), on the International Violin Business:

"The violin trade has always been corrupt. Compared with the rest of the art and collectors' market, and even with other instruments, only violins, because of their rarity, history and immense value, attract this level of corruption, with auction houses and the trade - and, of course, musicians who cannot afford these instruments - all suffering as a result." (The Guardian)

[Common forms of corruption include: Fake labels, re-graduation, false certificates, hidden repairs, kick-back schemes, replacement with the original with composite parts of different makers, etc.
Most old antique instruments are NOT original.]

Another expert on the violin business, Professor Brian Harvey, co-author of the l997 book Violin Fraud, demonstrates the existence of a “cartel” [Violin Maffia] composed of a few, all-powerful dealers.

“They all operate hand in glove, share in the arrangements and regard themselves as experts whose word cannot be challenged. They often act as auction house advisers and buy at sales, so it is time these facts were exposed.”

Prominent members of the International Violin Maffia have been discovered lately as engaging in the Money Laundering Business as well. Switzerland is still a major haven but also the Marshall Island, in the South Pacific. Don’t forget the Caribbean Islands, the Bahamas, Panama and numerous other places, amicable to money laundering as well. Dietmar Machold has been investigated, so have been British Gents and prominent American violin dealers. Truly, a nice assembly of criminal characters.

This brings me to a book I recently read by Jon Huer, a very readably publication and with profound insight of the Art Business of today, titled The Great Art Hoax.” It deals with essays in the “Comedy and Insanity of Collectible Art.”

The similarities between the Art and the Violin business are quite apparent, with one great difference: The expert purchaser of art is induced to buy according to their personal and subjective taste, as to what is beautiful and affordable. Not so with the purchaser of a stringed instrument, may it be a violin, viola, cello or bass.

“The Third Man,” written by novelist Graham Greene, came to mind. It portrays what is known in the corrupt violin world as the unscrupulous string teacher. You maybe wonder, ‘How is this the case?’ Let me ask this question: If you buy a used car, do you look for the driving instructor’s opinion, or would an auto mechanic’s knowledge be of greater help? Not unlike the purchase of a string instrument. The most professional advice regarding the physical condition or authenticity would come from a master violin maker, with many years of expertise, not even from a well-meaning string teacher. You, as a advanced player, have your own personal taste, as to sound.

Let me enlighten the generally innocent and unfamiliar public, which is being taken advantage off, with my 63 years of experience in this business as maker, dealer and fiduciary appraiser of stringed instruments.

To relate to the history of this practice of corruption in the violin business, I like to quote the late Hans Weisshaar, prominent founder of the American Federation of Violin and Bow Makers, and former president of the International Society of Violin and Bow Makers [Entente], in a letter which I’ve published on our website [RIN:068 Letter to Hans Weissaar par.6.]:

March 21, 1984

Dear Fritz,

“. . . Your second question regarding the payment of commissions, finder's fees [kick-backs] or any other remuneration in money or kind is much easier to settle. If you are in business and want to sell instruments, you will find it very difficult to be successful without doing it. [Paying up to 50% of the sales price] It has become an established and accustomed practice that has become a necessity for survival for many. And regardless of the protestations of many, this practice [of paying kick-backs] will survive and be part of our life, the same as prostitution in all its many forms has been part of our lives since time immemorial. So take it from there as a strictly philosophical observation on my part; it is an existing condition and not necessarily my idea of what is better or more ethical.”

A more recent article appeared in the STRAD magazine, [April 2011 issue, page 25] dealing with the same highly unethical, yes, even criminal and systemic practice of secretly paying kickbacks to a third party , by Ariane Todes, in her article Failure to declare.

As Ariane Todes highlights, most string teachers, for a price, have become the middleman in selling string instruments and bows, even though very few, if any, are able to assess the monetary value of a given instrument or bow. When purchasing a violin, as well as other string instruments, it is a classical BLIND PURCHASE. Since monetary value is basically determined by authenticity and physical condition, the string teacher can only assess the intrinsic and subjective beauty of sound, which is in the ear of the listener. Taste varies!

Thankfully, not everyone has the same taste! When kickbacks are added to the equation, the string teacher - by his/her demonstrating their superior playing ability --- can modulate the sound of any instrument. They can sway any listener the way they prefer by making a particular instrument sound good or bad on purpose, mostly based -and dependent on -the amount of kickback the dealer is offering. (See real-life example of teacher profits) Let me asked you a question: Do you know the cash value of your stringed instrument?

Therefore, low priced instruments bought in a traditional music store would have very little kickback possibilities at 10% to 20% markup of the sales price. The real money is with old and antique instruments and bows. With antique instruments and bows, the teacher – not qualified to assess the monetary value based on authenticity and physical condition --- is in the position to negotiate the kickback amount. The dealer who pays the most gets the sale! This is one of the reasons why string teachers prefer their students to purchase older instruments; -there is more money to be had from the sale. The amount of markups can be up to 50% of the sales price and is being paid to those string teachers who know the racket.

Only collectors are in the market for premium antique instruments -most of them are wealthy connoisseurs enjoying their hobby. ANTONIUS STRADIVARI made and sold NEW instruments –which follows that students and players would find greater value in an instrument made by a modern day master violin maker.

All of this reminds me of a statement made by the well known string teacher, Professor Jamie Laredo of the Curtis Institute: "A great player can make a cigar box sound great." Also, it again calls to mind an undisputed principle and physical law --- that of entropy, --- “The inevitable and steady deterioration of a system or society."

Also, witness the testimony of Professor Colin Gough:

“Science has not provided any convincing evidence for the existence or otherwise of any measurable property that would set the Cremonese instruments apart from the finest violins made by skilled craftsman today". Indeed, some leading soloists do occasionally play on modern instruments. However, the really top soloists --- and, not surprisingly, violin dealers who have vested interest in maintaining the Cremonese legend of intrinsic superiority --- remain utterly unconvinced.”

Excerpts from Professor Colin Gough's "Science and the Stradivarius," April 2000. Colin Gough is at the School of Physics and Astronomy, University of Birmingham, Edgbaston, Birmingham B15 2TT, UK

The kickbacks have become systemic within the violin business as seen by Hans Weisshaar’s comments “accustomed practice that has become a necessity for survival” (see quote above). With other instruments like trumpets, clarinets, trombones, etc., one needs the latest ‘top of the line’ creations of instrumental craftsmanship available today. Why not with string instruments? The answer is greed. When decisions go contrary to scientific evidence –just follow the money (i.e. kickbacks).
Quote taken from "Bought and Sold" article (from The Strad): /boughtandsold/

Now let us swing back for a direct look at the pedagogical side. Take the way the late Dorothy DeLay, honored as Julliard’s most prominent violin teacher, spoke of instruments and of students’ desire for careers as performers (see The Instrumentalist of July, 1989 [43:12]):

There is much more than natural aptitude that has to go into the long training of a concert violinist. Solid family support must be there. I teach some children whose mothers bring them here to study for years and years while the fathers are working hard to earn a living back in Korea or China or Japan. The cost of a fine concert violin runs high into six figures and many families carry two, and sometimes three, mortgages (emphases added).

 

DeLay, while acknowledging the “cost” of all this—a cost which is both monetary and simply human—doesn’t call the whole situation into question. Spending that kind of money on an instrument whose monetary value is determined as a collectors piece rather than on its use as a musical instrument--is unconscionable! Just follow the money!!

What do most of these listed individuals, dealers and organization have in common regarding kick-backs?
Why don't you start by asking the following people?

Machold's subsidiary as well as other violin dealers at:
410 South Michigan Ave, Chicago IL 60605

Dietmar Machold and Sales Associates: Kurt Sassmannshaus and Jaap van Sweden

Former employees of Dietmar Machold:
Peter Biddulph, Marcel Richters, Suga, van Kollenburg, Keith Bearden (felon),
Jason Price (Tarisio -New York; and previously "Sons of L. Ron Hubbard" -Chicago),
and Lisa Stein (Chicago), Florian Leonhard, London.

Fritz Reuter & Sons Inc., Kenneth Stein Violins, Seman Violins, William Harris Lee, A440, Kenneth Warren & Son, Carl Becker Violins

Sothebys; Tim Ingles, Dr Graham Wells, Paul Hayday.
Christies; Kerry Keane, Katie Banser.

Salvatore Accardo
Frank Almond
Eli Matthew Anderson
Jon Anderson
Jullian Arron
Shmuel Ashkenasi
Cornelia Babitt
Amy Barston
Megan Bauer
Gilda Barston
Pat Barlet
Charles Beare
Dmitri Berlinsky
John Becker
Joshua Bell
Saul Bellow
Yehonathan Berick
Jermy Black
David Bloom
Jan Bobak
Carol Boguse
John Bowen
James Buswell
British Reserve Insurance Company Inc
Anner Bylsma
Colin Carr
Tanya Carey
Heidi Castleman
Matthew Cataldi
David Cerone
Linda Cerone
Annie Chalix
Ronald Chambers
Chee-Yun
Sharon Chang
Chicago Youth Symphony
Ronald Chambers
Catherine Cho
Lisa Chu
Sarah Chung
Sharon Chung
Betsy Cline
Roger Cline
Lesley Cleary
Nelson Cleary
Dennis Connor
Donna Curry
Adam Crane
Lisa Creason
Hong-Wei Cui
Allison Dalton
Amalia Daskslakis
Michael Darton
Mandy Dennis
Dorothy DeLay
Sally Didrickson
Steven Doane
Sarah Dupuis
Nazar Dzhuryn
Timothy Eddy
Bernard Eichen
Fredell Lack Eichhorn
Rosemary Elliott
Toshiya Eto
Quinlan & Fabish
Yuri Falik
Richard Ferrin
Julie Fischer
Fine Arts Quartet
Julie Fisher
Paula Fisher
Cyrus Forough
Pamela Frank
Erick Friedman
Ulrich Fritze
Laurence Furse
Alan Garber
Zofia Glashauser
Robert Glazer
Carolina Gomez
Reuben Gonzales
Karin B. Gordon
Setsu Goto
Berhard Greenhouse
Roberta Guastafeste
“Sons of L. Ron Hubbard”
Abbey Hansen
Betty Haag
JoAnn Haasler
Dee Hagari
Matt Haimowitz
Yehuda Hanani
Robert Hanford
Harris Bank
Koichiro Harada
Sadao Harada
Lynn Harrell
Joji Hattori
Horace Havemeyer Jr
Ben Heineman
Frans Helmerson
Stephan Hersh
Joyce Hilkevitch
Lisa Hirshmugel
Wing Ho
Mary Kay Hoffmann
Rick Holzrichter
Paula Hutchinson
Byron Huey
Joshua Huppert
Illinois State U
Anne Inglis
Institutional Noon Recital Series at Rockefeller University
Jeffry Irvine
Julie Irving
Hans D. Isenberg
Stephen Isserlis
Yuri Iwasaki
Dylana Jenson
Hans Jensen
Kirsten Johnson
Carl Johnston
Leila Josefowicz
Hilel Kagan
Jeffrey Kahane
Grigory Kalinovsky
Hyo Kang
Jonathan Karoly
Myron Kartman
Stefan Kartman
Stephen Kates
Martha Strongin Katz
Paul Katz
Leonidas Kavacos
Ani Kavafian
Masao Kawasaki
Tomoko Kawada
Nathan Kawaller
Nigel Kennedy
Alexander Kerr
Kyung Kim
Lisa Kim
Suck Oo Kim
Ralph Kirshbaum
Mona Marie Knock
Jenny Koh
Patinka Kopec
Eliza Krivo
Ko Iwasaki
Paula Kosower
Gidon Kremer
Jeannette Kreston
Chihiro Kudo
Linda Kummernuss
Claudia Lasareff-Mironoff
Wolfgang Laufer
Lawrence University
Judy (Xiao Hong) Lei
Dr. Bennet Levin
Eunice Lee
Paul Ledwon
Michelle Lewis
Clara Lindner
John Norwood Lee
William Harris Lee
Ida Levin
Mark Cho-Liang Lin
Dr. Yulia Lipmanovich
Robert Lipsett
Lisa Lithall
Aaron Lockwood
Biao Luo
Si Quing Lu
Yo-Yo Ma
Samuel Magad
Peter Mandel
Robert Mann
Rebecca Brooke Manthe
Sarah Marsh
Mihaela Martin
Tetsuo Matsuda
Robert McDuffy
Donald Mclnnes
Anne Akiko Meyers
Yehudi Menuhin
Blair Milton
Midori
Shirley Miller
Nathan Milstein
Shlomo Mintz
Hisako Miyamoto
Megumi Miyamoto
Nicole Monahan
Moon Beach Festival-Okinawa
Sarah Marsh
Lenore McIntyre
Emily Morgan
Halie Morris
Mostly Music
Anna-Sophie Mutter
Kaeko Mukoyama
Tom Murray
Music Institute of Chicago in Winnetka
Musicorda Summer Music Camp
Anne Nagosky
Zara Nelsova
Kate Nettleman
Veronica Nettles
Samuel Nordlund
Andrea Nott
Hai-Ye Ni
Kurt Nikkanen
Nell Novak
Arkady Orlovsky
Carol Ou
Kevin G. Owens
Alyssa Park
Jonathan Pegis
Amit Peled
Itzhak Perlman
Peskanov
Juliet Petrus
Daniel Phillips
Charles Pickler
Eric Pidluski
Rachel Barton Pine
Tony Porter
Bruno Price
Doris Preucil
Preucil School of Music
Stepnanie Quinn
Carol Rand
Rhona Reagen
Steve Reinfranck
Brek Renzelman
Fritz Reuter
Galina Reznik
Gerardo Ribeiro
Ruggiero Ricci
Karen Ritscher
Carol Rodland
Channing Robbins
Russell Rolen
Dennis Rooney
Kathryn Robertson
Leonard Rose
Timora Rosles
Henry Roth
Kyra Saltman
Michael Sanchez
Angela Satris
David Sanders
John Schaffer
Sara Sant'Ambrogio
Helia Schramm
Christine Schoenweiss
Yizhak Schotten
Dr. William Senderman
Peter Seman
Philip Setzer
Helia Schramm
Gil Shaham
Andy Simionescu
Vincent Skowronski
Irene Sharp
Lawrence Shapiro
John Sharp
W. L. Shi
Dr. William Sloan
William R. Sloan
Peter Slovik
Society of American Musicians
Benjamin Smeall
Amalie Smith
Livia Sohn
Nadja-Salerno Sonnenberg
Tossy Spivakovsky
Elizabeth Stein
Isaac Stern
Janos Starker
Starling Preparatory String Project
Thomas Stone
Gary Stucka
Akiko Suwanai
Suzuki Academy of Performing Arts
Joseph Swenson
Henryk Szeryng
Kyoko Takezawa
Emi Tanabe
Desi Tantchev
George Taylor
Toshikatsu Teraoka
THE STRAD
Toho and Tokyo University
Shio Toyouaga
Iris Turk
Tokyo String Quartet
Wolfgang Tsoutsouris
Shawnita Tyus
Asako Urishihara
Ileana Vlad
Michael Vlad
Daniella Valdez
Roland & Almita Vamos
Vermeer Quartet
Robert Vernon
Violin Society of America
Bob Wallace
Russell Wagner
Nina Wallenberg
Qiang Wang
Kenneth Warren & Son
Wendy Warner
Jeremy Waterman
Alison Wells
Barbara Westphal
William Whedbee
Victor Yampolsky
Phillip Ying
David Yonan
Young Concert Artists Inc
Caroline Yoshimoto
Wally Pok Hon Yu
Jessica Ziegler
Marc Zinger

These Individuals are mostly members of string faculties and are primarily connected, in some way, with Schools of Music at various Universities, throughout the world. They may be Julliard, Ithaca, Eastman, Manhattan, Roosevelt, DePaul, Northern Illinois, Northwestern, Southern Illinois, University of Illinois, Ball State, DePauw, Indiana State, Indiana, Lawrence, Wisconsin, Music Institute of Chicago, etc.

Others are listed as dealers in Stringed Instruments throughout the world. Also, many are also members of the American String Teachers Association (ASTA), Violin Society of America, American Federation of Violin and Bow Makers, International Society of Violin and Bow Makers, (Entente International).

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