What will happen to the Michael Sterndale-Smith art scam?Posted: August 13, 2017
Poor Sterndale-Smith got bumped off the committee by Binns and Niven.
This is the first time in living memory a sitting committee member actually lost their seat at an election.
We’re as shocked as he is.
But the real question is: What will happen to his art gallery scam?
For those of you not familiar with Michael Sterndale-Smith, his main contribution on the committee was to come with a scheme that would be too bizarre for most clubs but was perfectly normal for City Tatts.
His plan was to get paintings from a commercial gallery and hang them at City Tatts.
So far, so good.
But, remember, this is City Tatts, the Twilight Zone of the club industry. So there are a few “special” features to the arrangement.
The paintings are all for sale, and when they are sold the gallery keeps all the profit.
And, one more thing, City Tatts pays the gallery $50,000 for acting as their showroom.
It is obvious that Sterndale-Smith intended to profit from this scheme. But as far as we can tell, City Tatts never paid him any money. Maybe he was rewarded directly by the gallery.
But what will happen to the arrangement, now that Sterndale-Smith is gone?
Is City Tatts to become a cultural wasteland? Is the scam finished? Is Batman doomed to a slow death at the hands of The Riddler?
Or maybe Sterndale-Smith can sell the scam to Diversa, like John Kennedy did with his Bookmakers Superannuation Fund scam?
City Tatts Information Desk