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MYSTERY SHOPPERS

Like thousands of tourists, Gary and Olga Holloway went on a Caribbean cruise for relaxation. The Scottsdale couple also wound up learning about fine art, thanks to Park West at Sea, a company that conducts onboard auctions.

Before the trip was over last June, they had spent $17,836 on three limited-edition prints by Rembrandt van Rijn, plus one by Salvador Dali.

Gary Holloway was thrilled with his sophisticated investment, backed by appraisals and letters of authenticity.

The works, including Dali's "Divine Comedy — Paradise 26," showed a total "retail replacement price" of about $24,000. Holloway figured he had actually made money while on vacation.

Back home in Arizona, he enjoyed looking at the artwork for six months, then advertised it on eBay. He got no bid over $1,000 and was puzzled to find similar prints offered for one-quarter of his purchase price.

Holloway said experts told him he overpaid. In late January, he wrote a letter to Park West Gallery of Michigan, the umbrella company that describes itself as the largest seller of fine art in America. He complained that company agents overstated the appraisal value of the Rembrandt trilogy and assured him that discount art from cruise auctions is a worthwhile purchase.

Last month, Park West attorney Robert Burlington answered Holloway's complaint: "Our investigation of the facts does not support the allegations you have made. . . . Park West stands behind its prices and is fully able to support the reputation of the company and the value of its artworks. . . . You will not be receiving a refund."

If Holloway had read the invoice on his purchase, he would have found a disclaimer: "No verbal agreements or representations (by Park West agents) shall be of any force or effect unless set forth in writing."

If he had read the certificate of authenticity, he would have learned that it did not apply to guarantees about the work's title, lot size, rarity, provenance or importance. And if he had inspected the appraisal, he would have seen that Park West "assumes no liability for claims that our appraisal is inaccurate."

As Park West Gallery director Morris Shapiro put it, "No one can say they weren't informed of the rules."

Shapiro answered written questions via e-mail sent to Burlington, the company attorney. He said Park West auctioned hundreds of thousands of pieces of art in 2006 yet received just 30 letters of complaint. Ten refunds were issued for various reasons on a case-by-case basis.

Some unhappy clients thought they got cheated because they saw "fake artwork and phony prices" advertised on the Internet, Shapiro said. Others may have suffered buyer's remorse: "When the vacation is over and the routine of daily life resumes, bills from the vacation arrive, and many people realize they spent a lot more than they had planned."

Overall, Shapiro said, Park West has provided "exceptional value" to nearly 1 million clients since 1969.

Each year, tens of thousands of tourists sail the seas. Many voyages feature auctions promoted with bro-chures, announcements and seminars. Cruise lines charge the art companies a fee but take no responsibility for their dealings.

Champagne flows freely. Auctioneers deliver spellbinding spiels. The show, Shapiro said, is "informative and entertaining."

It's also big business, and Park West is among the prominent oceanic entrepreneurs.

Shapiro wouldn't disclose the company's income, but it conducts auctions on about 70 ships, with more events at resort hotels for special clients.

Many of the pieces are limited-edition impressions taken from works by masters such as Picasso and Renoir. Shapiro said letters from patrons document consumer satisfaction.

Richard Sisneros of Albuquerque, who has bought 40 works at Park West auctions over the years, sent a recent thank-you note: "We were so impressed with the knowledge and level of customer service your employees provided. Park West is truly top drawer."

He has bought art from Park West at cruise auctions and at resort events.

But some art appraisers use the words "caveat emptor" (buyer beware) when discussing "land and sea auctions" for tourists. They say unsophisticated vacationers can get caught up in a buying frenzy conducted with free booze and a limited opportunity to do research.

"These people somehow trust that they're getting really good deals," said Alan Bamberger, an independent appraiser and author of "The Art of Buying Art."

"You have to get a second opinion, no matter where you're buying," he said.

Shapiro said auction guests are not pressured, and cruise ships have Internet service for anyone who wants to compare prices. Besides, he added, a work's ultimate value is "based on the emotion it elicits from the viewer."

"Just be warned . . ."

Several experts noted that Park West appraisals are done in-house and list a "retail replacement value" for art pieces.

Dan Soules, sales executive with Phoenix-based Gordon's Art Reference, which maintains databases on art prices, said major auction houses typically provide estimated prices in advance of bidding based on what was paid for comparable artwork in previous events.

Bernard Ewell, a Dali specialist who does authentication work for Park West, said the company's appraisals are not independent and he perceives them as high. Ewell said people who buy art to make money are misguided, because nearly all pieces decline in value after the first purchase. Asked about cruise ship auctions, he said: "Just be warned. . . . Almost invariably, the prices paid to Park West are higher than in other venues."

Corinne Cain of Phoenix, a 30-year art appraiser accredited by the American Society of Appraisers, said she has attended Park West auctions and found the company's labeling to be accurate. However, she noted, "it was more than a little likely that potential art purchasers did not realize that information was direct evidence that the artwork was not that desirable."

For example, Cain said, the phrase "signed in the stone" means an artist did not individually sign the work. Another term, "pochoir," describes a stencil print that is generally less valuable than an original etching or lithograph.

Shapiro's answer: "If someone doesn't understand 'signed in stone' or 'pochoir,' please, these are adults. They need only to ask. Is that so surprising or unfair?"

Shapiro said Park West appraisals are ethical and no different from when other businesses put a price tag on a product. As for the phrase "retail replacement value," he added, that is an amount "generally used for insurance purposes."

Suit alleges "phantom bidders"

A class-action lawsuit in New Jersey alleges that Park West auctioneers sometimes use "phantom bidders" to drive up prices.

On a voyage five years ago, the civil complaint alleges, art buyer Alan Beegal detected the practice.

"They were shills that weren't even there," contended Ross Begelman, attorney for the plaintiffs. "The auctioneers just pointed at the chandelier or pointed at the crowd."

The lawsuit alleges that the practice continued at subsequent auctions, meaning each new round of patrons was bidding based on artificially inflated prices from prior auctions. Because of that, Begelman estimates, there are 250,000 to 1 million people who may qualify as plaintiffs.

Shapiro said the civil complaint is "absurd." Burlington, the Park West lawyer, said the class-action certification by the court is under appeal.

"My jaw dropped" at online info

Jim and Julie Russell of Las Vegas also reported feeling cheated after buying art at a Park West auction.

While surfing the Web after a purchase, they discovered that a Jules Cheret chalk drawing they had paid $24,700 for had been bought by Park West from another gallery months earlier for $2,000.

"My jaw dropped," Jim Russell recalled. "I'm looking at $2,000, and they've sold it for $24,700. And this is the 'steal of the auction'?

"Neophyte's a good word. Definitely a novice," Russell added. "They've got an open bar there, filling up your glasses with booze. It kind of reminds me of what goes on in Vegas with your hosts in the casinos."