Art Advisor Lisa Schiff Sentenced to 2.5 Years in Prison for Fraud in NYC
# **New York Art Advisor Lisa Schiff Sentenced to 30 Months for $6.5 Million Fraud Scheme**
New York City art advisor Lisa Schiff has been sentenced to **30 months in prison** as of **March 19, 2024**, after being found guilty of defrauding multiple clients out of **approximately $6.5 million**. Schiff, who specialized in art advisory services through her company Schiff Fine Art (SFA), engaged in fraudulent business transactions as part of a years-long scheme. The sentencing also includes **forfeiture of over $6.4 million** and **more than $9 million in restitution** owed to victims.
## **Background of the Case**
Lisa Schiff was once known as a trusted and respected art advisor, helping collectors navigate the high-stakes world of contemporary art. However, her career began to unravel in **May 2023**, when three of her longtime friends and clients—**Candace Carmel Barasch, Richard Grossman, and Adam Sheffer**—filed the first lawsuit against her.
The lawsuit alleged that Schiff failed to fully compensate them after facilitating the **$2.5 million sale of an Adrian Ghenie painting** through Sotheby’s Hong Kong. While Schiff initially distributed a portion of the funds from the sale and took her 10% commission, she allegedly withheld the remaining **$1.8 million**, using the money to support her own lavish lifestyle. Her clients believed this incident was **part of a larger Ponzi scheme**.
## **The Expanding Legal Troubles**
Following the first lawsuit, the situation escalated when **Barasch and her husband filed a second lawsuit** just a week later. This new claim accused Schiff of rerouting between **$2.5 million and $3 million** of Barasch’s funds to cover debts to other clients and finance her personal expenses.
The growing allegations led to an investigation that uncovered **dozens of additional claims** against Schiff, involving a range of clients from **galleries to collectors**. Many claimed they had sent money for artwork purchases that never materialized or had been misappropriated.
## **Schiff’s Attempt to Avoid Accountability**
After the second lawsuit was filed, Schiff took steps to dissolve her art advisory firm. She executed **an assignment for the benefit of creditors (ABC)** on behalf of **Schiff Fine Art (SFA)**, essentially liquidating assets to pay off debts. Ultimately, she filed for **Chapter 7 bankruptcy** in **January 2024**, a move seen by many as an attempt to avoid complete financial liability.
However, by **October 2023**, Schiff formally **pled guilty to one count of wire fraud** in connection with **defrauding at least 12 clients and misappropriating funds linked to 55 artworks**, including works by **Sarah Lucas and Wangechi Mutu**.
## **The Sentencing and Consequences**
Schiff’s sentencing on **March 19, 2024** confirmed her **30-month prison term**, along with significant financial penalties:
– **Forfeiture of over $6.4 million**
– **Restitution payments exceeding $9 million**
This punishment comes as a stark warning to the art world, highlighting **the risks associated with financial mismanagement and fraudulent dealings within the high-value art market**.
## **Lisa Schiff Speaks Out**
In a surprising turn, **Schiff gave an interview to the New York Times** last month, in which she reflected on her crimes. She admitted that the opulent lifestyle she built through embezzlement **“wasn’t even fun”** and caused her extreme guilt.
*”At the end, I thought that I was going to have a stroke,”* she told the [**New York Times**](https://www.nytimes.com/2025/02/18/arts/design/lisa-schiff-art-adviser-theft.html).
Her statements provide a small glimpse into the pressures and psychological costs of maintaining the deception, though they do little to lessen the impact her actions had on her defrauded clients.
## **Impact on the Art Market**
Lisa Schiff’s case has sent shockwaves through the art industry, raising major concerns about **the integrity of private art advisors and the need for stricter financial oversight**. Many collectors rely heavily on advisors to manage multimillion-dollar transactions, and this scandal highlights the vulnerabilities in such arrangements.
Insiders suggest this case may encourage **greater scrutiny and regulation in the high-end art advisory sector**, forcing greater transparency in financial dealings.
## **What’s Next?**
As Schiff serves her sentence, questions remain about how much of the lost money will be recovered. Many victims are **seeking additional legal options** to ensure they receive at least partial compensation.
Meanwhile, the art world continues to reflect on the lessons learned from this case, hoping to prevent future incidents of fraud and deception in high-value transactions.