NYC Art Adviser Admits to Defrauding Clients Out of Millions
Lisa Schiff has pleaded guilty to scamming art clients out of millions of dollars. Photo credit: Association of Women in the Arts.
Lisa Schiff, 54, a resident of Manhattan, pled guilty to charges of wire fraud on Oct. 17 in a scheme to defraud her clients out of millions of dollars, according to a DOJ press release. The fraud involved about 55 pieces of artwork and around $6.5 million.
Worked With Leonardo DiCaprio, Other Celebrities
Lisa Schiff founded her company, Schiff Fine Art, LLC. (SFA), in 2002, according to her now archived website. She began to make a name for herself as an expert advisor in the purchase and sale of contemporary fine art.
Schiff advised clients regarding the sale and purchase of artwork and made purchases or sales on her client’s behalf on a commission basis, according to the DOJ.
Schiff even advised Leonardo DiCaprio to buy John Gerrard’s Solar Reserve art piece and donate and install it at the Los Angeles County Museum of Art (LACMA) in July 2018, according to her archived site.
Lawsuits Began in 2023
Fame and fortunes shifted for Schiff on May 11, 2023, however, when Schiff’s clients, collectors Richard Grossman and Candance Carmel Barasch, filed a complaint against her company, SFA, in the Supreme Court of New York, according to SFA bankruptcy documents. The documents alleged that Schiff failed to give them the entire amount of the sale proceeds of a recent deal according to their contract.
On May 15, 2023, Douglas J. Pick, a bankruptcy partner at Pick & Zabicki LLP, working on behalf of the creditors of SFA, filed suit to “Marshal the former assets of SFA” to sell at auction to help redistribute payment to the creditors, according to the bankruptcy papers.
A few days later, on May 17, 2023, Candance Barasch, Michael Barasch, and Brady A. Carmel Living Trust filed a suit against Schiff and her company, SFA, claiming that she misused millions of dollars in funds that were supposed to be for purchasing artwork.
The next day, May 18, 2023, Pick with the Winston Art Group opened an investigation into Schiff and SFA and found 894 artwork items in Schiff’s possession, valuing about $3,115,000, according to the affidavit. They also found that about $1,125,000 worth of inventory was not accounted for, and their locations were unknown.
Schiff’s Admission of Guilt
Schiff admitted to defrauding her clients by using the profits from art sales, or the funds intended to make purchases, for personal and business expenses, according to the press release. She kept the money from selling her client’s artwork, not telling them their work had sold. She also took the money clients gave her to purchase artwork and used it for personal expenses.
Between 2018 and 2023, Schiff defrauded 12 clients, one gallery, an artist and an artist’s estate out of about $6.5 million.
Schiff agreed to forfeit $6.4 million and will be sentenced on Jan. 17, 2025, according to the press release. She faces up to 20 years in prison.
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