Manhattan art advisor Lisa Schiff recently pleaded guilty to one count of wire fraud in a New York district court. This comes after Schiff was accused of embezzling millions from her clients through a multi-year scheme. Last May, Schiff faced two lawsuits from clients of her consultancy business, Schiff Fine Art (SFA), alleging that she had diverted profits from artwork sales and payments for artwork purchases.

In total, Schiff admitted to defrauding clients of around $6.5 million through the purchase and sale of 55 artworks. This included at least twelve clients, one artist, the estate of another artist, and one gallery. United States Attorney Damian Williams stated that Schiff had used the stolen money to fund a lavish lifestyle and has agreed to forfeit approximately $6.4 million. She could face up to 20 years in prison, with her sentencing scheduled for January 17.

Court documents revealed that in addition to the two lawsuits, around 40 entities, including artists, collectors, galleries, and brokerage firms, had filed similar claims against Schiff. Some of these claims remain unsettled. Works held by SFA, including pieces by artists like Damien Hirst and Judy Chicago, are set to go to auction at Phillips in New York next month.

Schiff’s lawyer, Randy Zelin, explained that they are currently working to determine which artworks were sold on consignment and which were not. Schiff had previously attempted an Assignment for the Benefit of Creditors, but ultimately filed for bankruptcy in January. In addition to the debts owed to clients, Schiff also owed significant amounts to the IRS, New York State tax department, and New York City Department of Finance.

As they prepare for Schiff’s sentencing, Zelin emphasized the goal of presenting her as a person beyond the allegations, hoping to show the judge a more comprehensive view of who she is. Despite the challenges ahead, they are working to cooperate with trustees and assist those who own the artworks involved in the case.