Lisa Schiff, a prominent Manhattan-based art advisor, was sentenced to over two years in federal prison on Wednesday for defrauding clients out of approximately $6.5 million. Schiff, 54, ran Schiff Fine Art, where she facilitated the purchase and sale of contemporary artwork, but instead of acting in her clients’ best interests, she misappropriated their funds for personal and business expenses.
From 2018 to May 2023, Schiff executed her fraudulent scheme in two main ways. First, she failed to pay clients for artwork sales while falsely claiming that the artwork had not been sold. Second, she accepted funds for art purchases that she never made. She also misled clients and galleries, blaming payment delays on buyers while secretly diverting the funds for personal use.
In 2020, Schiff even drafted letters admitting to having stolen millions from at least two victims but never sent them. She continued her fraudulent activity for another three years, affecting at least 12 clients, an artist, an artist’s estate, and a gallery.
The scheme unraveled in May 2023 when mounting debts made it impossible for Schiff to continue the fraud, leading her to confess to several clients. In addition to her prison sentence, Schiff was ordered to forfeit $6.4 million and pay more than $9.1 million in restitution to the victims of her fraudulent activities.
The case highlights the risks and trust involved in art advisory services, as well as the severe legal consequences of financial fraud in the high-stakes world of contemporary art.
