Art Advisor Lisa Schiff Sentenced to Prison for $6.5 Million Fraud Scheme

Lisa Schiff, once a prominent figure in Manhattan’s art scene and trusted advisor to wealthy collectors, has been sentenced to 30 months in federal prison for orchestrating a multimillion-dollar fraud scheme.

The sentencing in Manhattan federal court marks the downfall of a career that spanned over two decades and included high-profile clients such as actor Leonardo DiCaprio.

Schiff, 54, pleaded guilty last October to one count of wire fraud after admitting to defrauding at least 12 clients, an artist, an artist’s estate, and an art gallery out of $6.5 million between 2018 and 2023.

Her fraudulent activities centered on her art advisory firm, Schiff Fine Art (SFA), where she misappropriated funds meant for art purchases and sales. Instead of fulfilling her clients’ expectations, Schiff diverted the money to fund her lavish lifestyle and cover mounting debts.

Prosecutors revealed that Schiff employed various deceptive tactics to sustain her scheme. In some instances, she sold artworks belonging to clients without informing them or remitting the proceeds. In others, she claimed she was purchasing artwork on behalf of clients but instead pocketed the funds for personal expenses. To maintain the facade, she used money from one client to pay another and falsely assured them that payments were delayed due to external issues. Despite briefly considering confessing in 2020, Schiff continued defrauding her victims for three more years until her scheme unraveled in May 2023.

During her sentencing hearing, Schiff tearfully addressed the court and apologized directly to her victims, many of whom had considered her a friend. “I stand here as a criminal who hurt clients, colleagues, and friends,” she said. “I stole from them. I lied to them. I lived lavishly off their trust. I am prepared to accept responsibility.” Her victims described feelings of betrayal, noting how they had welcomed her into their lives and trusted her with significant financial transactions.

In addition to her prison sentence, Schiff was ordered to pay over $9.1 million in restitution and forfeit $6.4 million. She will also serve two years of supervised release after completing her incarceration and is required to surrender by July 1.

Schiff’s fraudulent activities have sent shockwaves through the art world, where she had cultivated an image of sophistication and expertise. Known for advising affluent collectors on acquisitions of high-value contemporary art, she built a reputation as a savvy dealmaker with strong ties to galleries and auction houses. However, federal prosecutors characterized her operations as an “art-world Ponzi scheme,” exposing the lack of regulation in the art advisory field.

Her sentencing comes amidst ongoing civil lawsuits from former clients seeking damages related to her misconduct. Among those suing Schiff are Candace Barasch and Michael Barasch, who allege that she defrauded them out of proceeds from the sale of a major artwork by Adrian Ghenie.

Acting U.S. Attorney Matthew Podolsky remarked on the case: “For five years, Lisa Schiff violated the trust of her art advisory clients by redirecting millions for personal gain. Her deceit has caused significant harm not only financially but emotionally to those who placed their confidence in her.”

Schiff’s downfall serves as a cautionary tale for the art market’s affluent clientele about the risks inherent in an unregulated industry where trust often replaces formal oversight mechanisms. As she prepares to serve her sentence, Schiff’s legacy shifts from being a celebrated advisor to a stark example of betrayal within the elite art world.