Arrest made in art fraud case

A FORMER art dealer has been granted bail in a NSW central coast court over an alleged multi-million-dollar investment fraud.

A FORMER art dealer has been granted bail after appearing in a NSW central coast court yesterday over an alleged multi-million-dollar investment fraud.

Ronald Coles appeared at Gosford Local Court yesterday, where he faced 87 charges concerning an alleged scam involving paintings by some of Australia's best-known artists.

Police allege Mr Coles, 64, from Ettalong, sold to clients valuable artworks -- including paintings by Norman Lindsay, Brett Whiteley and Arthur Boyd -- that were already in the possession of other investors.

Police claim that about 42 investors have incurred losses in excess of $8 million from the scam.

A NSW police spokeswoman said Mr Coles was arrested yesterday morning at Gosford Police Station following an "extremely protracted and legally intricate" three-year investigation.

"He was arrested, and then charged, and it all happened very quickly," the spokeswoman said.

Detectives from Strike Force Glasson have been tracking the former art dealer since 2009. During that time, police have seized more than 400 paintings as part of the investigation, which includes detectives from the Fraud and Cybercrime Squad.

Mr Coles reportedly offered clients the opportunity to purchase valuable works of art as an investment with superannuation funds.

Mr Coles will appear again before the court next month.