Art adviser stole $6.5M from clients, faces up to 20 years in prison
A Manhattan art adviser, known for working with Leonardo DiCaprio and other celebrities, admitted to wire fraud on Thursday. Lisa Schiff, 54, confessed to stealing $6.5 million from over a dozen clients over a five-year period.
Instead of taking commissions, Schiff kept entire profits from art sales, deceiving clients about the transactions. She used the stolen money for personal and business expenses, and to cover substantial debts, as stated by Manhattan federal prosecutors.
Schiff’s fraudulent activities involved 55 artworks between 2018 and May 2023, according to the US Attorney’s Office for the Southern District of New York. She defrauded at least twelve clients, one artist, the estate of another artist, and a gallery, amassing $6.5 million.
US Attorney Damian Williams highlighted that Schiff used the funds for a lavish lifestyle. Lawyers for her victims mentioned in a Manhattan bankruptcy court filing that she spent the stolen money on luxuries such as a $25,000-a-month apartment, European shopping sprees, and a vacation in Greece, including a villa, yacht, and helicopter.
Schiff made her guilty plea in Manhattan federal court and consented to forfeit $6.4 million. Sentencing, overseen by Judge J. Paul Oetken, is scheduled for January 17. Prosecutors plan to recommend a prison term between 3.5 and 4.25 years, although wire fraud carries a maximum sentence of 20 years.
Her lawyer, Randy Zelin, stated that Schiff is remorseful and aims to demonstrate her acceptance of responsibility. He added that she is humbled and intends to rectify her wrongdoings.
Schiff Fine Art, her advisory business, acted as an intermediary between art galleries, auction houses, and collectors. She lied to galleries about purchasing art with clients’ money, falsely attributing payment delays to her clients while misappropriating the funds. Eventually, mounting debts exposed her scheme, leading her to confess to several clients.
Schiff also faces civil suits from clients like real-estate heiress Candace Carmel Barasch and her husband, Manhattan lawyer Michael Barasch.
