FBI Raids Magnolia Mansion Hotel Owned by Fouad Zeton
When the FBI conducted a three-hour raid of the Magnolia Mansion Hotel owned by Fouad Zeton, a Syrian-Greek businessman with strong political ties, the agents left with what appeared to be more than a dozen paintings wrapped in brown paper and several boxes of business records.
In an interview with WWL TV, Zeton was quick to point out
that he was a legitimate businessman. “I am an honest man. I don’t have
anything to hide. I don’t sell drugs,” he said.
Zeton has yet to state publicly where the seized paintings
came from or even if they belonged to him. Were they hanging on the walls of
the hotel or merely being stored there? It is also not known what part the art
plays in the FBI’s investigation.
The New York Times reported in a front-page story on Sunday
that the federal government is more frequently connecting the dots between art,
drugs and money laundering. In a raid of a Philadelphia drug dealer’s home,
Homeland Security investigators found marijuana, cash, fourteen valuable
paintings on the walls and dozens more in a near-by storage unit. Those
paintings- by such artists as Salvador Dali and Picasso- were valued in the
millions.
“That jumped out at us,” federal agent Brian A. Mitchell
told the New York Times. “The amount of artwork was not something you come
across in every investigation.”
The drug dealer in question, Ronald Belciano, purchased the
art from a legitimate gallery. Laundering ill-gotten gains through art
purchases is relatively easy because the art world is known for its secrecy and
lack of transparency.
Sales of paintings are often anonymous and therefore
difficult to track. Sometimes buyers do not know exactly from whom they are
purchasing a piece of art. Sellers might not know for whom the art is being
procured.
Federal investigations exposing artwork as the preferred
medium for money laundering purposes have become much more common.
Earlier this year Congress extended federal anti-money
launder regulations to include antiquities dealers. The law was originally
created for the banking industry. Federal agencies are also studying whether
similar regulations should be placed on the wider art market.
Zeton came to America from war-torn Syria because he feared
for his safety. A well-known professional boxer, Zeton won the World Boxing
Council Championship during his 26-year career. He would display his
championship belt at special events including Mayor LaToya Cantrell’s election
night celebration. The two have remained close friends.
In addition to the Magnolia Mansion, Zeton is involved in
several other businesses. Before Covid, he threw lavish fundraisers for
politicians. Middle Eastern cuisine along with pizza was frequently served.
Zeton was always a gracious host who thrived in the political spotlight.
When Zeton’s 31-year-old son Fouad Jr. was murdered in the
French Quarter in 2018, hundreds of family members, friends and elected
officials shared his grief. Even four-time world heavyweight champion Evander
Holyfield flew in for the services. Though almost four years have passed, Zeton
is still deeply saddened by the loss of his son.
In a recent interview, Zeton said he has leased the Magnolia
Mansion to Cydney (CiCi) Hedgpeth, a model, actress and singer with a New
Orleans connection. She is also thought to be partners with Irvin Mayfield and
Ronald Markham in a venture called Blackhouse Music.
Mayfield and fellow musicians including Markham have
recently performed at the Mansion. Perhaps they intend to use the dollars
earned from these performances to begin repaying their debt to the City’s
library system.
No information is available on the status of the FBI’s
investigation.
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