COA Recall for Verdult Certificates of Authentication, Yazzy's at www.williamverdult.com

Get a current COA that reflects today’s market

There has been much said and written about Verdults’ $15 million dollar painting.

Though we would love to have a $15 million dollar painting because we own the entire Verdult brand, there is no such thing as a $15 million dollar Verdult painting.

Why?

It is pretty simple - in recent times – or in fact in any time – no Verdult painting has ever sold for $15 million or anywhere close to that number.

How do we know? Again, it is simple. We own the Verdult brand. Since we are a public and reporting company, we cannot just say, we have a $15 million painting and put that number on the books. This just will not fly. Our Securities and Exchange (SEC) sanctioned certified public accountants want to see actual proof of a sale. Short of that they want to see an appraisal by an independent Certified Appraiser.

Prior to taking possession of the brand in 2006, to verify the value of paintings sold, the artist was required to turn over to the Corporation any and all sales receipts.

During the transition in 2006, at no time were we provided with any sort of sales receipts that would garner enough mustard to get past our SEC Certified public accountants.

Not only was the artist not able to come up with any sort of sales receipts approaching a million dollar number or several thousand dollars for that matter, actual sales, formal appraisals, IRS appraisals, insurance claim payments, formal audits, and more information in our data base support the findings that there has never been a sale approaching anywhere near a million dollars.

We have been a key player in the Verdult market for six years. The past three years we have owned the brand in its entirety, outright. The Corporation has conducted nearly 5,000 auctions of Verdult artwork, commissioned scores of formal appraisals by independent appraisers sanctioned by the Internal Revenue Service, have gone through SEC sanctioned audits, and processed valid insurance claims, and reviewed and signed off on loan and collateral packages where art was used. Additionally, we have provided sales figures to artnet.com and artprice.com as well as other major repositories for art. Upon request, we have also provided scores of letters of estimates to attorneys and financial institutions that were negotiating the value of Verdult art between two sometimes opposing parties. We even contacted directly a gentleman that actually paid cash for a number of the King Tut paintings. At no time – and I repeat at no time - has a Verdult piece ever sold for $15 million or anywhere close to that number.

Sometimes people get confused by the price placed on the Certificate of Authenticity and the actual market value of a piece of artwork.

The vast difference between the actual market value and the value placed on the Certificates have been not only confusing but a stumbling block for many transactions. For Verdult art, this has been a great challenge as well as a great concern. On the one hand, for example, you have a piece of art with a COA that is stated at $1.5 million dollars. On the other hand, logic dictates that the item is not worth the amount placed on the COA, especially if you cannot get anyone to pay you this amount – or even talk to you about paying this amount, and there have never been any records of sales for this amount.

So what goes here? Great art from a listed American artist, but doubt and considerable doubt about the value of this art prevails.

In fact, one person stated that the value placed on the COA gives the impression that the person selling the painting is a “snake oil salesperson “or at best a seller of used cars. While inflated COAS might be okay in the Barter industry where a lot of horse trading takes place, or for the artists who can whip out a painting in exchange for a used Bentley that he has been eyeing for awhile, or to cover the expenses of a wayward, son who instead of finding gainful employment attempts to ride the coat tails of his father, for most individual investors who have paid their hard earned cash for their investment, the over inflated COA is just no good.

The investor is not helped but hurt by this inflated COA. Because most investors, lenders, and money people are very astute, they look for true value behind the amount placed on COAS. They look to the value to be backed up – not by flowery words, but by actual sales and formal appraisals. So if that value is not backed by a formal appraisal or actual sales figures, those holding Verdults and attempting to use collateral will be turned away fast, and after our exhaustive review – rightfully so.

So what gives here? Why the vast discrepancy between values on the Certificate of Authenticity and the art work’s market value? Most important what can be done about it?

First, we must understand the difference between value placed on a COA and the actual market value of the artwork. Both are useful; both serve a purpose. But because they differ so greatly Verdult owners have a problem. The Corporation has an extensive game plan to fix this problem – fast!

Value placed on COA

A Certificate of Authenticity and Insurance Appraisal signed by William Joseph Verdult or the Corporation does two things:

1. It tells the buyer or appraiser that the artwork is in fact authentic; and
2. It gives a value primarily for insurance purposes if this work had to be replaced if it was damaged; then what would it cost to have William Joseph Verdult, replicate the work. This price is set either by the artist or corporation - in this case.

This document (COA) is important not only from a provenance (ownership paper trail) standpoint, but also from as I've indicated an insurance replacement or insurance claim standpoint. It is also important for tax donations as well. But we will leave that for another article.

Value can throw you for a loop

Frequently, the value displayed on a Certificate of Authenticity and Insurance Appraisal (COA) throws a novice buyer/investor for a loop. Often what a new person will say is, "Hey, I've got a Verdult. It's from the Dutch Master himself and I have a COA for $500,000.00. Now where can I sell this hummer and get my money? I don't have to take the whole $.5 million; I will settle for half of that”. See “ Where is my $5 Million”

The problem is that the value of most of the COAs are out of whack; they are inflated, and not in line with today’s’ market.

How do we know?

How do we know this? We experienced this disconnect ourselves. Fighting and literally cursing out auditors for more than two years. We demanded that the Corporation be given full value on its books for the amount listed on the Certificate of Authenticity.

What causes the confusion?

The value placed on the COA often times is inflated and bears no resemblance to the figure one would actually receive in cash from the market. This is called the fair market value or the actual value one receives from a panting when it is sold.

How we are correcting the problem.

To correct the problem or disparity between an inflated COA value ad the actual market value, and to move from the realm of a snake oil salesman, the Corporation is authorizing the issuance of new COAs that are in-line with the actual Verdult market.

Effective immediately the Corporation is taking action to do away with the inflated COAs and bring the COAs in line with the actual market value of the art. To provide legitimacy to the market we are taking the following action immediately:

The Corporation has instituted a COA RECALL Cleanup and Authentication program consisting of:

1. At a minimum cost to the investor, the Corporation is re-issuing COAs that are more in line with market conditions.
2. Notifying all of the major repositories, insurance companies and claims agents and key appraisers the true value of Verdult art work.
3. Recalling any and all inflated COAs issued by either the artist before 12 January, 2006 or the Corporation.
4. Handling any and all COAS issued by the artist after 12 January 2006 on a case by case basis.
5. Advising the public of the only valid COA that is acceptable and authorized by the Corporation.
6. Identifying false COAs – especially those issued after 12 January 2006.

The re-issuance of COAs will fall into the following areas:

1. Individuals receiving COAS directly from the Corporation when they bought art from the company. The cost to reissue a COA will be $99 plus shipping. Click to Recall your inflated COA >>
2. Individuals requiring reissuance of inflated COA issued before January 12, 2006, the cost to receive a reissue will be $99 plus shipping. Click to Recall your inflated COA >>
3. Individuals requiring reissuance of inflated COAs issued after January 12, 2006 and not by the Corporation, the cost will be $149 plus shipping. Click to Recall your inflated COA >>

Prior to receiving your new Certificate of Authenticity, all inflated COAs must be returned to the Company.

Why it is important to receive an updated COA with the Corporation approved COA and artist signature?

Here is why. An inflated COA

1. Will call into question the actual value of your artwork.
2. Adversely impacts the Verdult brand.
3. Causes problems when attempting to get insurance.
4. Causes potential lenders to question the integrity of the art and the Verdult brand.
5. Can prevent investors from getting the most value if they need to use their art for collateral.

To move beyond an impression of a snake oil salesmen, get a current COA that reflects today’s market.