Art adviser Lisa Schiff sentenced to prison for wire fraud in $9M Ponzi scheme

Lisa Schiff, a New York art adviser, has been sentenced to two-and-a-half years in prison and ordered to pay $6.4 million in forfeiture plus $9 million in restitution to victims. In October 2024, she pleaded guilty to one count of wire fraud related to transactions involving approximately 55 artworks, a charge carrying a maximum 20-year sentence. Court documents from August 24 reveal Schiff shut her business, SFA Advisory, in May 2023 after clients accused her of fraud. Collectors Candace Carmel Barasch and lawyer Richard Grossman with his spouse filed a lawsuit in December, alleging Schiff operated a Ponzi scheme using client funds for personal expenses and other debts. The suit claims Schiff failed to deliver $1.8 million from the $2.5 million sale of an Adrian Ghenie painting after taking a 10% commission and making partial payments. Additional claimants allege losses ranging from hundreds of thousands to millions of dollars. The lawsuit notes multiple debts to the U.S. government, including IRS and state tax claims, which would be prioritized over collectors in any repayment. No bankruptcy petition has been filed.