Child of Nazi Lieutenant, accused of concealing theft of artwork, faces charges

In a remarkable turn of events, a painting that was stolen from a Jewish art dealer during World War II has been returned to the public eye after eight decades. The painting, known as "Portrait of a Lady" by Giuseppe Ghislandi, was discovered hanging in the living room of Patricia Kadgien's house in Mar del Plata, Argentina.

The discovery was made by Dutch journalists investigating Kadgien's past, during a 3D tour of the house for sale. The painting, which had been missing since it was stolen, was recognised as the same portrait listed as missing in international archives of Nazi-looted art. The newspaper Algemeen Dagblad published an exposé on August 25, grabbing headlines around the world.

The painting was originally owned by Jacques Goudstikker, an art dealer who died in a shipwreck in 1940 while fleeing the Netherlands as German troops advanced. The painting was sold under duress and far below market price by its original owner.

The parents of Patricia Kadgien include Friedrich Kadgien, a Nazi financier during the Nazi era who took the stolen portrait to Argentina during World War II. The couple, Patricia Kadgien and her sister Alicia, were aware that the artwork was being sought by the criminal justice system and international authorities.

Marei von Saher, the heir to art dealer Goudstikker, lodged a legal claim to Portrait of a Lady at the FBI's New York office. However, the court rejected the request, arguing that it lacked jurisdiction given the painting's provenance.

In response, the defendants' lawyer, Carlos Murias, filed a petition with a civil court in Mar del Plata asking that Kadgien be allowed to auction the painting. The Argentine court had asked that the painting be displayed at the Holocaust Museum in Buenos Aires ahead of any further transfer abroad.

The real estate ad, first posted in February, was swiftly taken down as the painting's true identity was revealed. Security footage showed people removing the "for sale" sign from Kadgien's front yard as media scrutiny intensified last week.

The Argentine authorities raided Kadgien's house and other properties, seizing a rifle, a .32-caliber revolver, and several paintings from the 19th-century that they suspect may have been similarly stolen during WWII. The defendants are currently under house arrest.

Despite the court proceedings, the FBI declined to comment on this matter. This return of the stolen artwork serves as a reminder of the ongoing efforts to uncover and return Nazi-looted art to its rightful owners.