A New York art consultant, once associated with high-profile clients like actor Leonardo DiCaprio, admitted on Thursday to committing wire fraud, conning over a dozen individuals out of $6.5 million through the sale of 55 pieces of art.
The 54-year-old Lisa Schiff, from Manhattan, made her plea in federal court, acknowledging that she misappropriated client funds from 2018 through May 2023 to settle her personal and business financial obligations.
During her hearing with Judge J. Paul Oetken, Schiff agreed to relinquish approximately $6.4 million in assets.
Sentencing has been scheduled for January 17. While the charge of wire fraud could carry a maximum sentence of 20 years, an agreement with prosecutors suggests a more lenient prison term, estimated to be between 3.5 to 4 years.
Schiff’s attorney, Randy Zelin, emphasized that Schiff is ready to demonstrate her accountability and remorse. He stated that she feels humbled and is committed to rectifying the wrongs she has committed.
According to U.S. Attorney Damian Williams, Schiff operated her art advisory firm, Schiff Fine Art, by deceiving clients—taking profits from their artworks’ sales and using funds they intended for purchases for her benefit instead.
“Rather than utilizing client funds appropriately, Schiff squandered the stolen money on a lavish lifestyle,” Williams remarked.
As outlined in court documents, Schiff’s fraudulent activities included selling clients’ artworks without their knowledge and taking their money under the pretense of buying art, which she never actually acquired.
To maintain the facade, she often misled clients, falsely attributing payment delays to them, despite them having already sent their funds, as noted by authorities.
Schiff managed to accumulate significant debts by victimizing at least 12 different clients, along with an artist, the estate of another artist, and a gallery, resulting in losses exceeding $6.5 million.
Legal filings in U.S. Bankruptcy Court revealed that Schiff’s annual income reaching seven figures was insufficient to sustain her “extravagant lifestyle,” which clearly overstepped her financial means.
Reports from her lawyers indicated that she resided in an extravagant $25,000-a-month apartment, invested $2 million in renting an unnecessary business space, and enjoyed luxurious European shopping trips, complete with stays at high-end hotels.
During one trip, she even rented a villa in Greece, along with a yacht and helicopter services.
The lawyers criticized her for using her clients’ money while claiming to consider them family, repeatedly expressing her fondness for them, all while treating their investments as “her personal piggy bank.”
Eventually, she reached out to at least seven clients, expressing her struggles with finances, according to legal representatives who referred to her actions as “fraud” and likened her to “nothing more than a common thief.”
The fraudulent scheme came to light in May 2023, when Schiff, burdened by mounting debts, admitted to several clients that she had personally misappropriated their funds, according to prosecutors.
Zelin mentioned that he and Schiff plan to shed light on the underlying reasons for her fraud in their upcoming statements to the court.
Following her guilty plea, Schiff was released on a $20,000 bail.
Zelin remarked that Schiff intends to collaborate with federal prosecutors, the bankruptcy court, and other entities to recover funds, aiming to “transform this situation into something positive for everyone involved.”
He stressed that Schiff is aligning herself with the victims and is not seeking any support for herself.
Zelin concluded by stating that they view this case as an opportunity for Schiff to reinvent herself and move forward positively. He shared that Schiff’s legal advisors initially alerted state prosecutors in New York about her fraudulent activities before federal authorities stepped in, as she aimed to “turn a disastrous situation into a chance for resolution.”
In the courtroom, it was confirmed that Schiff acknowledged her dishonesty toward clients regarding payments for artworks she failed to deliver.