Federal Bureau of Investigation’s Art Crime Team exposes Lisa Schiff’s $6.5 million fraud, leading to a 30-month prison sentence and over $9.1 million in restitution and forfeitures

New York – Former Manhattan-based art advisor Lisa Schiff was sentenced to 30 months in prison for a multi-year scheme defrauding her clients of approximately $6.5 million. The sentencing was handed down by U.S. District Judge J. Paul Oetken. Schiff, who had been a respected figure in contemporary art advisory, faced charges of misusing client funds to sustain her own lavish lifestyle and cover personal expenses.

The prosecution led by Acting U.S. Attorney Matthew Podolsky detailed how Schiff, through her company Schiff Fine Art (SFA), manipulated financial transactions related to around fifty-five artworks. From 2018 to May 2023, she diverted funds that were either profits from sales of client artworks or payments made for purchasing new pieces. These funds were instead used for her own personal and business expenditures.

Schiff’s role as an art advisor placed her in a pivotal position between her clients and various art institutions such as galleries and auction houses. Clients entrusted her with significant sums to acquire or sell high-value artworks, expecting professional handling and transparency. Instead, Schiff breached this trust by failing to remit payments to clients after selling their artworks. In many instances, she did not even inform the clients of the sale, misleading them to believe that their pieces were still awaiting buyers.

Furthermore, Schiff was involved in transactions where she promised to purchase artworks on behalf of her clients but never completed these acquisitions. She falsely informed galleries that delays in payments were due to client funding issues, while she had actually received the payments and used them for personal gain.

The deceit reached a peak in 2020 when Schiff contemplated coming clean to at least two of her victims. She drafted confession letters admitting her theft but ultimately chose not to send them, continuing her fraudulent activities for three additional years. During this period, Schiff led a life far beyond her means, accumulating substantial debts that she serviced using the stolen funds.

The case came to light in May 2023 when Schiff, unable to manage her escalating debts, confessed to several clients that she had misappropriated their money. This admission led to a swift investigation by the Federal Bureau of Investigation’s Art Crime Team, which was lauded by Mr. Podolsky for its exceptional efforts in uncovering the truth behind Schiff’s complex scheme.

Following her prison term, Schiff will undergo two years of supervised release. She has also been ordered to pay substantial financial penalties, including forfeiture of over $6.4 million and restitution amounting to more than $9.1 million to the victims of her fraudulent scheme. The case serves as a poignant reminder of the vital importance of integrity and transparency in the handling of clients’ investments in the art market.