Art adviser gets 2.5 years in prison for fraud

NEW YORK

A New York art adviser who once counted actor Leonardo DiCaprio among her wealthy patrons was sentenced on March 19 to 30 months in federal prison after admitting to cheating clients out of $6.5 million in connection with the sale of 55 works of art.

Lisa Schiff sobbed as she turned to her former friends and clients seated behind her in Manhattan federal court and apologized to them by name.

“I stand here as a criminal who hurt clients, colleagues, and friends,” the 54-year-old Manhattan resident said, calling herself a “coward” for hiding her deceit and “living lavishly” off money stolen from people who had “loved and trusted” her.

“I am a guilty person and I am prepared to face my punishment,” Schiff said tearfully. “I am scared, but I am ready.”

Schiff is to report to prison July 1.

One of Schiff's victims, Michael Barasch, told the court that his family had embraced her as one of their own, inviting her to family gatherings and holiday parties.

Barasch estimated that Schiff’s victims stand to lose as much as $10 million when considering the costs of lawyers and other experts they’ve hired to try to recoup some of their losses through litigation.

Schiff also was sentenced to two years of supervised release, ordered to pay forfeiture of nearly $6.5 million and restitution of more than $9 million. She declined to comment outside the courtroom.

Schiff pleaded guilty to wire fraud in October, admitting that she defrauded clients of her art advisory business, Schiff Fine Art.

Prosecutors say she sold artwork belonging to clients without telling them or accepted their money to buy art that she didn’t end up purchasing.

They say Schiff used her clients as her “personal piggy bank,” funding a lavish lifestyle that included a $25,000-a-month apartment, a $2 million space for her business and grand trips to Europe, complete with shopping sprees at designer boutiques and stays at luxury hotels.

On one vacation, Schiff rented a Greek villa, yacht and helicopter, according to prosecutors. Unable to hide her mounting debts, she eventually confessed to some of her clients in May 2023.

DiCaprio had been among Schiff’s former clients as she built a decades-long career in the art world. Prosecutors say among those she swindled were 12 clients, an artist, the estate of another artist and an art gallery.