If I remember correctly it was that he produced more than the contracted number of prints of his paintings.
“While not singling out [Thomas Kinkade] in its finding of fraud, the panel ruled that the Morgan Hill, Calif.-based company and one of its executives, Richard F. Barnett, “failed to disclose material information” that would have dissuaded Karen Hazlewood and Jeffrey Spinello from investing $122,000 to open the first of their two Virginia galleries in 1999.”
Gallery Owners Win Ruling in Kinkade Case
Los Angeles Times
Author: Kim Christensen
Date: Feb 24, 2006
Start Page: C.1
Section: Business; Part C; Business Desk