Manhattan's once-trusted art advisor, Lisa Schiff, has received a sentence of 30 months in prison for a fraudulent scheme that siphoned off approximately $6.5 million from her clients. The sentencing, handed down by U.S. District Judge J. Paul Oetken, follows Schiff's conviction for her dealings in the contemporary art scene that spanned five years and involved the deception of numerous art collectors, as reported by the Justice Department.
As an art advisor, Lisa Schiff, once at the helm of Schiff Fine Art (SFA), was responsible for acting as a go-between for her clients and the bustling world of art galleries and auction houses. It was her duty to route payments through her business, handle custody of artworks for sale, and purchase pieces on behalf of her clients. However, starting in 2018, the trust placed in her by at least 12 clients, one artist, the estate of another artist, and a gallery became the foundation for her scheme. She diverted funds meant for art transactions to cover her lavish lifestyle and personal expenses including the payment of her substantial debts, according to the Justice Department.
Schiff's methods were simple in their deceit; she either failed to remit payments for sold artwork without informing clients of the sale or did not purchase artwork on behalf of clients despite having received their funds intended for such transactions. Acting U.S. Attorney Matthew Podolsky, in a statement obtained by the Justice Department, denounced Schiff's actions: “For five years, Lisa Schiff breached the trust of her art advisory clients by diverting millions of dollars to pay her own business and personal expenses, and to fund a lavish lifestyle. Because of Schiff’s lies, and her illusory art advisory scam, Schiff will now serve a substantial sentence in prison.”
It was in May 2023 when the walls of Schiff's deception began to crumble, her mounting debts making the continuation of her scheme untenable. She confessed to several clients that she had been misleading them and misappropriating their money. For her actions, Schiff, at the age of 54, will not only face prison time but has also been ordered to pay forfeiture and restitution totaling over $15 million. This sentencing, as hailed by Mr. Podolsky, is a testament to the meticulous work of the Federal Bureau of Investigation’s Art Crime Team and the prosecution's efforts led by Assistant U.S. Attorneys Cecilia Vogel and Jennifer Ong.
