Prominent art advisor Lisa Schiff is accused of running a ‘ponzi scheme’ in a lawsuit over the sale of a $2.5 million Adrian Ghenie painting.
Richard Grossman and collector Candace Barasch filed the lawsuit in the New York Supreme Court on Thursday. In addition to claiming that Lisa Schiff defrauded them over refusing the pay the fees, but also that it was “part of a much larger Ponzi scheme that Defendants were running, taking money from one client to pay another, and to fund Schiff’s lavish lifestyle.”
The lawsuit revolves around the painting The Uncle 3 (2019) by Adrian Ghenie. According to the lawsuit, Barasch was first made aware of the work by Schiff in 2019 itself. She bought a 50 percent stake in the work, with Richard Grossman and his spouse taking the remaining 25 percent each. The work was sold at Sotheby’s in December last year for $2.5 million. Both Barasch and Grossman received $225,000 each via wire transfer. However, ever since then, Schiff has been delaying repaying the remaining $1.8 million to them, going as far as to avoid their calls and asking them to talk to her attorney.
Lisa Schiff is a prominent art advisor in the New York art circle and even beyond. Art advisors are market experts who guide buyers and collectors about ‘what, where and how’ of the art market. Last year, the New York Times named her as one of the most notable art advisors in America. Schiff runs SFA Advisory, a New York-based art advisory firm.
Candace Barasch is a notable art collector in her own right, named one of the top art collectors between 2014-2018. What’s interesting is that she and Schiff were seemingly close previously; in 2019, she called Schiff her ‘partner-in-crime’ and thanked her for many successful buys. However, now, Barasch has been highlighting Schiff’s high-profile lifestyle as evidence that her inability to pay back to her clients is a sham. Grossman and Barasch are seeking $2 million+ in damages as well as Schiff to forfeit her $250k commission from the sale.