Art stolen from Jeffrey Gundlach is recovered; 2 arrested Police recovered the nearly $10-million collection of contemporary art - which included works by Piet Mondrian, Jasper Johns and Richard Diebenkorn - that was stolen this month from Gundlach's Santa Monica home. He had offered a near-record $1.7-million reward for the collection's safe return. PHOTOS: Stolen art Santa Monica police arrested two suspects in the crime, and Gundlach said that at least one of the pieces was in the midst of being sold. The big break in the case came Wednesday when Pasadena police officers received a tip that the stolen art was held at an automobile stereo shop, Santa Monica police said in a news release. Officers raided the Al & Ed's Autosound store on South Rosemead Boulevard, recovered all but one of the stolen paintings and arrested the store's manager - Jay Jeffrey Nieto, 45, of Canyon Country - on suspicion of possessing stolen property. A second suspect, Wilmer Cadiz, 40, was arrested at his home in Rosemead, also on suspicion of possessing stolen property. The final painting was recovered at a residence in Glendale. The person who was in possession of that painting has not been arrested and is cooperating with investigators, police said. The burglary of Gundlach's home shook Southern California's art world, which includes many private collections held by movie moguls and celebrities. It was also the talk of Wall Street, where Gundlach is considered one of the world's preeminent fund managers. The reward offer played a key role in the paintings' recovery, according to a law enforcement source who was familiar with the case but not authorized to speak about it. The source said additional suspects may be arrested. It was not clear whether the reward money would be paid to the person who provided the tip that led to the arrests. In addition to the art, the thieves made off with expensive watches, rare bottles of wine and his red 2010 Porsche Carrera. Gundlach did not know who, if anybody, would get the reward. He had offered $1 million for the return of a Mondrian painting called "Composition (A) En Rouge Et Blanc." The offer is said to be the highest-ever reward for a single painting. That was the painting Gundlach said the thieves had been trying to unload. One lesson Gundlach learned from the burglary was to beef up protection for his collection: "I will continue to take good care of it," he said. There have been many upgrades to security, and armed guards are now on the property.