Manhattan-based art adviser Lisa Schiff, known for her elite clientele, pleaded guilty on October 17 to a federal wire fraud charge. She admitted to swindling collectors out of $6.5 million. As part of a plea agreement, Schiff will forfeit $6.4 million and faces a potential prison sentence of up to twenty years. Her sentencing is scheduled for January 2025.

The scandal surrounding Schiff first came to light in 2023, following lawsuits filed by real estate heiress Candace Carmel Barasch, her husband, and collector Richard Grossman. The lawsuits accused Schiff of failing to pay $1.8 million from a painting sale and misappropriating $6.6 million intended for art purchases. Investigations revealed that from 2018 onward, Schiff had been siphoning funds from her clients, either by withholding proceeds from sales or diverting funds intended for acquisitions.

In a public statement, Damian Williams, U.S. attorney for the Southern District of New York, condemned Schiff’s actions. He stated that she had betrayed her clients’ trust and used their money to support a lavish lifestyle. He emphasized the gravity of Schiff’s breach of fiduciary duty, which had severely impacted around a dozen clients.

Following the collapse of her business, Schiff Fine Art, in May 2023, Schiff filed for bankruptcy earlier this year. To repay debts, she has begun auctioning off her personal collection, including works by Judy Chicago, Nan Goldin, Damien Hirst, and Anicka Yi. Schiff’s lawyer expressed her intent to make amends, hoping to return to the art world one day.