Art Advisor Lisa Schiff Sentenced to 30 Months for $6.5M Fraud

Art Advisor Lisa Schiff Sentenced to 30 Months for $6.5M Fraud.

Lisa Schiff, a Manhattan-based art advisor specializing in contemporary art, was sentenced to 30 months in prison for defrauding clients of approximately $6.5 million.

The sentencing, which took place in the Southern District of New York, follows Schiff’s conviction for running a multi-year scam that involved the purchase and sale of nearly 55 artworks between 2018 and 2023.

Acting U.S. Attorney Matthew Podolsky emphasized the severity of Schiff’s betrayal, noting that she “breached the trust of her art advisory clients” by diverting their funds to support her lavish lifestyle and personal expenses.

Schiff’s fraudulent actions caused significant harm to both her clients and the art world at large.

Details of the Fraudulent Scheme

From 2018 through May 2023, Lisa Schiff used her position as the owner of Schiff Fine Art (SFA) to defraud at least 12 clients, one artist, a gallery, and the estate of another artist. As an art advisor, Schiff’s role was to act as an intermediary, buying and selling artworks on behalf of her clients.

She earned commissions for these transactions, but instead of fulfilling her promises, Schiff used client funds to cover her own business and personal expenses.

Schiff’s fraudulent activities were carried out in two main ways:

1. Selling Client Artworks Without Payment – Schiff sold clients’ artworks but failed to remit the proceeds to them.
2. Not Purchasing Artworks for Clients – Clients paid Schiff to acquire artworks on their behalf, but she diverted the funds to her own use rather than completing the purchase.

Lies and Deceptions to Cover Up the Fraud

Throughout the years, Schiff used a range of lies to cover up her actions. When she sold artworks without paying her clients, she claimed that the artwork had not sold or that the buyer had delayed the payment.

In some cases, she falsely told clients that she still had custody of their pieces when, in fact, she had already delivered the artwork to the buyer.

Similarly, when she failed to purchase artworks on behalf of clients, Schiff blamed delays in payments on the clients themselves, despite having already received funds. These deceptive tactics allowed her to continue her fraudulent scheme for over five years, undetected by many of her clients.

A Lavish Lifestyle Funded by Fraud

Schiff’s greed played a central role in her actions. While deceiving clients out of millions of dollars, she was also living a lavish lifestyle, using the stolen funds to pay personal and business expenses.

This included paying down substantial debts that had accumulated from her ongoing scheme.

In 2020, Schiff even drafted letters of confession, planning to admit her fraudulent actions to at least two victims, but ultimately decided against sending them. Instead, she continued to defraud her clients for three more years.

Lisa Schiff’s case underscores the lengths to which some individuals will go to maintain a luxurious lifestyle, even at the expense of those who place their trust in them.

Legal Consequences and Final Confession

By May 2023, Schiff could no longer hide the extent of her fraudulent activities. Facing mounting debts, she confessed to several of her clients that she had stolen their funds. This admission marked the end of her five-year scheme, but the damage had already been done.

The 30-month sentence handed down by U.S. District Judge J. Paul Oetken highlights the serious legal consequences of financial fraud in industries like art advisory.