In a federal court session on Wednesday, a New York art adviser known for her work with notable clients, including actor Leonardo DiCaprio, was given a 30-month prison sentence after admitting to defrauding clients out of $6.5 million through her dealings in the art market.
Lisa Schiff showed visible remorse, breaking down in tears as she turned to apologize to her former friends and clients who were present in the courtroom in Manhattan. Addressing each by name, she expressed regret for her actions.
“I stand here as a wrongdoer who inflicted harm on clients, colleagues, and friends,” stated the 54-year-old from Manhattan. She described herself as a “coward” for concealing her fraudulent acts and indulging in a life of luxury using money from those who had placed their trust in her.
“I acknowledge my guilt and am ready to face the consequences,” Schiff said in an emotional statement. “I’m apprehensive, but I am ready to accept my fate.”
Schiff is scheduled to begin her prison term on July 1.
One of the people affected by Schiff’s actions, Michael Barasch, shared in court how his family had treated her like a close family member, inviting her to family events and celebrations.
“Your disgraceful behavior is about more than just the money,” he said. “You broke my wife’s heart. She considered you her best friend.”
Barasch estimated that Schiff’s victims could potentially face losses amounting to $10 million considering the legal and expert fees they’ve paid to try and recover some of their lost money through court actions.
“We might be fortunate to recover even a fraction of what was lost. No victim will be fully compensated,” he remarked, adding, “Shame on you.”
Judge J. Paul Oetken, who delivered the sentence, described Schiff’s offenses as “particularly audacious,” emphasizing that her deception lasted over five years and involved over a dozen individuals.
Despite this, he acknowledged that Schiff came from a supportive family and was considered intelligent and considerate, while also raising a 12-year-old son on her own.
“She has a commendable side to her nature,” Oetken commented. “It remains a puzzle how someone with such capabilities could engage in such conduct.”
In addition to her prison time, Schiff received two years of supervised release, and was instructed to remit nearly $6.5 million plus over $9 million in restitution. Schiff declined to comment when outside of court.
Schiff had confessed to wire fraud charges in October, acknowledging that her fraudulent actions targeted the clients of her art advisory firm, Schiff Fine Art.
Prosecutors revealed that she sold artwork owned by clients without informing them and sometimes pledged to purchase art with customer funds but failed to make the acquisitions.
They alleged that Schiff treated her clients’ funds like her “personal piggy bank,” bankrolling an opulent lifestyle that featured a $25,000-a-month apartment and $2 million office space, along with extravagant trips across Europe, replete with high-end shopping and stays at premium hotels.
One particular trip included a stay at a Greek villa complete with yacht and helicopter rentals, as claimed by prosecutors.
As her debts spiraled beyond control, she confessed to some of her clients in May 2023.
Formerly regarded as a prominent figure in the art scene, her clientele included not just DiCaprio, but also 12 others, an artist, an artist’s estate, and an art gallery whom prosecutors say were deceived by her.
Though wire fraud charges carry a potential sentence of up to 20 years, by entering a plea deal, Schiff and her legal team anticipated a sentence ranging between 3 1/2 to 4 1/4 years.
During the court proceedings, Assistant U.S. Attorney Cecilia Vogel advocated for the victims, many of whom had written heartfelt letters to the court ahead of Schiff’s sentencing.
“The fraud was extensively calculated,” Vogel remarked. “The damages inflicted here are substantial.”
Vogel suggested that Schiff only admitted her wrongdoing once she realized it would no longer remain hidden.
“She reached a point where the deceit could not be sustained,” Vogel pointed out.
Schiff’s attorney, Randy Zelin, asserted that his client has been fully cooperative with the criminal inquiry and efforts to recover the stolen amounts.
“My client can’t undo what’s happened,” he acknowledged. “She can accept responsibility and feel remorse, but the only option now is to move forward.”