Police have seized more than $5 million worth of artworks from a leading art dealer after reports of a scandal involving millions of dollars in missing money and art.
The Sun Herald on Sunday reported that Kenthurst art dealer Ronald Coles was being investigated by police, after his clients claimed he had sold their paintings on their behalf without passing on the proceeds.
Yesterday, investigators raided the art dealership in Kenthurst and two private premises in Kenthurst and Dural, where they allegedly found a number of firearms and seized 404 paintings worth more than $5 million, police said.
Some of the artworks were by well-known artists, police said.
According to the Sun Herald, Mr Coles has a national database of clients who invest in valuable art portfolios that he buys, then stores, exhibits and sells on their behalf.
He has specialised in works by Australian artists including Brett Whiteley, Norman Lindsay, Sir Arthur Streeton and D'Arcy Doyle.
But in recent weeks customers have arrived at the Ronald Coles Investment Gallery to find it closed and cleared of all valuables.
One of Mr Coles's clients allegedly told police he invested $1 million in four paintings.
For the past six months he has been trying to find out where the paintings are, and found one of them on the internet after it had been sold by another dealer.
Police have laid no charges and investigations were continuing.