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A former art adviser to stars including Leonardo DiCaprio has pleaded guilty to defrauding clients of $6.5 million to fund what prosecutors allege was a “lavish” lifestyle in New York City.
Lisa Schiff, who runs a contemporary art advisory business in Manhattan and brokered deals for works by artists such as Wangechi Mutu, Sarah Lucas and Chloe Wise, was sued by a former client earlier this year. filed for bankruptcy.
On Thursday, U.S. prosecutors announced that she had pleaded guilty to wire fraud “in connection with the purchase and sale of approximately 55 works of art.”
They alleged that Schiff, who had a high-profile clientele, pocketed the funds needed to purchase artwork from clients and misappropriated proceeds from the sale of certain works.
In total, Schiff defrauded “at least 12 customers, one artist, the estate of another artist, and one gallery,” according to New York federal prosecutors.
“For years, Lisa Schiff earned the trust of her art advisory clients by lying to them and misappropriating millions of dollars entrusted to them,” Manhattan U.S. attorney Damien Williams said in a statement after the agreement. I have betrayed you,” he said.
Schiff’s attorney, Randy Zelin, said the plea agreement shows his client “accepted responsibility.” . . And he will continue his efforts to make amends. ”
“This is just a snapshot in a photo album full of great work.” [and] Professionalism,” Zelin added. “I hope she returns to her role in the art world.”
Schiff has been a prominent figure in the city’s art scene since launching SFA Advisory in 2002, and opened his own gallery in Tribeca in 2019.
Last year, she was charged with fraud in two civil lawsuits, including one brought by collector Candace Barash, who accused Schiff of collecting artwork that Schiff never fully completed. He claimed he owed at least $2.5 million for the purchase of . Schiff’s company filed for Chapter 7 bankruptcy protection in January.
Mr. Schiff is scheduled to be sentenced next year. She faces up to 20 years in prison, but prosecutors agreed in a plea deal to seek a sentence of no more than 51 months.
Her collection, which includes artwork by Damien Hirst, will be auctioned off at Phillips in New York next month as part of the bankruptcy proceedings.
