How Rembrandt van Rijn’s financial scheme brought him down

Rembrandt allegedly hired stand-ins to bid up his paintings at auctions, creating the illusion of soaring demand. He then used the works as collateral for huge loans, funding a lavish lifestyle and a growing antiques collection.

The scheme collapsed in 1656. Creditors demanded repayment, and the paintings lost value. Rembrandt declared bankruptcy; a court ordered that his future works go toward his debts. To avoid destitution and debtors’ prison, his son and partner opened an art business and hired him as an employee. The business owned the canvases and paints, while Rembrandt received food and shelter instead of wages. His creditors couldn’t seize property that wasn’t his, so he could keep creating.

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