Reported by Sarah Maslin Nir

(Summary version of report featured below)

Lisa Schiff, a prominent art adviser, pleaded guilty to wire fraud for stealing $6.5 million from clients who trusted her to buy art on their behalf. Schiff, whose clientele included high-profile collectors like Leonardo DiCaprio, was accused of diverting funds meant for art acquisitions to finance her lavish lifestyle. Federal prosecutors revealed that she stole money entrusted to her for the purchase of approximately 55 artworks. As part of her plea agreement, Schiff will forfeit $6.4 million and faces up to 20 years in prison, with her sentencing scheduled for January 17.

Schiff’s fraud was first exposed through lawsuits filed by real estate heiress Candace Carmel Barasch and another collector, Richard Grossman. Barasch accused Schiff of owing them $1.8 million from the sale of a painting by Romanian artist Adrian Ghenie. Additionally, Barasch and her husband claimed Schiff misappropriated $6.6 million they had given her to buy art. Despite their long-standing friendship, Schiff betrayed the trust placed in her, using her clients’ money to cover personal debts rather than fulfilling her obligations as an art adviser.

Prosecutors disclosed that Schiff’s fraudulent activities began in 2018, impacting at least 12 clients, including an artist, a gallery, and an estate. Schiff often withheld proceeds from art sales or failed to pay for pieces her clients had commissioned her to purchase. The Federal Bureau of Investigation detailed her deceptive methods, underscoring the depth of her financial crimes. Despite her high-profile clientele and seemingly successful advisory business, Schiff ran a multimillion-dollar fraudulent scheme that unraveled in the art world.

Schiff has since filed for bankruptcy, and works from her personal art collection are set to be auctioned by Phillips New York beginning in November. Her lawyer stated that Schiff is committed to making amends and expressed hope that she might eventually return to the New York art scene. The case highlights the intersection of art fraud and financial crime, where trust and the high value of artworks can create significant opportunities for deceit.

Read original report: https://www.nytimes.com/2024/10/17/arts/design/art-adviser-wire-fraud-lisa-schiff.html?searchResultPosition=1