NYC Art Adviser Admits to Defrauding Clients Out of Millions
SHARE

NYC Art Adviser Admits to Defrauding Clients Out of Millions

Lisa Schiff Posing in a Black and White Image Has Pleaded Guilty to Defrauding Art Investors - The Daily Muck

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.

Prosecutors say Lisa Schiff was missing about $1.1 million of fine artwork she claimed to have in her possession - The Daily Muck.
Prosecutors say Lisa Schiff was missing about $1.1 million of fine artwork she claimed to have in her possession, according to court documents obtained by The Daily Muck.

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.

Jessika Saunders
Jessika Saunders is a journalist with a passion for politics. When she isn't writing, she enjoys the Arizona weather and teaches virtual fitness classes. Jessika also writes fiction novels and hopes to become a published author in the future.
If you spot an error in any of our articles, please contact us at
Email
And we will look into it.

Weekly Muck

Join the mission and subscribe to our newsletter. In exchange, we promise to fight for justice.

By signing up, you confirm that you are over the age of 16 and agree to receive occasional promotional offers for programs that support The Daily Muck’s journalism. You may unsubscribe or adjust your preferences at any time. You can read our Privacy Policy here.

Weekly
Muck

Join the mission and subscribe to our newsletter. In exchange, we promise to fight for justice.

By signing up, you confirm that you are over the age of 16 and agree to receive occasional promotional offers for programs that support The Daily Muck’s journalism. You may unsubscribe or adjust your preferences at any time. You can read our Privacy Policy here