Picasso Fake Nets $2 Million, Dealer Gets Real Fraud Conviction

The forged Pablo Picasso pastel called "The Woman in the Blue Hat" (AP/Dept. of Justice)
Forgery of "The Woman in the Blue Hat" (AP/Dept. of Justice)
LOS ANGELES (CBS/AP) A 70-year-old West Hollywood art and antiques dealer who allegedly sold a "phony Picasso" for $2 million has agreed to plead guilty to some very real federal fraud charges.

In a plea agreement filed Tuesday in Los Angeles federal court, Tatiana Khan agreed to plead guilty to making false statements to the FBI and witness tampering.

Khan is expected to enter her pleas next month.

Prosecutors say Khan admitted that she paid an artist $1,000 to duplicate a 1902 Picasso called "The Woman in the Blue Hat."

Khan then sold the fake Picasso as an original for $2 million.

The plea deal calls for her to spend no more than 21 months in prison. Without it, she could have been looking at 25 years in prison.

January 25, 2010 - Picasso's "The Actor" Painting Damaged by Art Student During Metropolitan Museum Trip