Art advisor Lisa Schiff, known for running the New York-based Schiff Fine Art advisory, has been named in a lawsuit by two clients and longtime friends, Candace Barasch and Richard Grossman. The plaintiffs claim that Schiff owes them a combined total of $1.8 million related to the sale of a painting by sought-after Romanian artist Adrian Ghenie. The complaint, filed on May 11 in New York State Supreme Court, accuses Schiff of breach of contract, conversion, fraud, breach of fiduciary duty, and conspiracy.
The lawsuit revolves around a failed art-flipping transaction and also accuses Schiff of operating a “Ponzi scheme.” In addition to the alleged owed amount, the plaintiffs claim that Schiff has engaged in extravagant spending, including renting a $25,000 per month New York apartment, luxurious international travel, shopping sprees for designer clothes and jewelry, and stays at five-star hotels. The plaintiffs assert that despite this lavish lifestyle, Schiff does not possess the funds owed to them. They claim to have obtained knowledge of Schiff’s personal spending habits through extensive travel and personal friendship with the advisor.
Schiff’s attorney, John Cahill, has declined to comment on the matter. Wendy Lindstrom, the attorney representing Grossman and Barasch, expressed disappointment, stating that Schiff’s exploitation of the trust placed in her is disgraceful.
The incident stems from April 2021 when Schiff informed Barasch and Grossman about the availability of Ghenie’s painting titled Uncle 3 (2019). After discussions and consultations, including with Grossman’s unidentified spouse, the plaintiffs agreed to purchase the artwork. While the original purchase price remains undisclosed, Barasch took a 50% share, while Grossman and his spouse each acquired a 25% interest. However, none of them took physical possession of the artwork, and it was instead shipped to a storage unit in Delaware.
Adrian Ghenie is a highly sought-after painter represented by the renowned Pace Gallery. His works often evoke the tormented imagery found in Francis Bacon portraits. The record for a Ghenie artwork sold at auction stands at $10.3 million for Pie Fight Interior 12 (2014), sold at Christie’s Hong Kong in May 2022.
In November 2022, Barasch and Grossman agreed to sell the artwork through an oral agreement, with Schiff acting as the broker. The deal involved selling the piece for $2.5 million, with a commission of 10% ($250,000) going to Schiff. The transaction was facilitated through Sotheby’s Hong Kong, and the artwork was delivered to Sotheby’s headquarters in New York.
According to the complaint, $225,000 from the sale proceeds was wired to Grossman and Barasch in January 2023, with Schiff receiving her commission at that time. Schiff promised to disburse the remaining $1.8 million ($900,000 each) to the investors by March 26. However, Schiff requested a 30-day extension, claiming it was to accommodate the purchasers in Hong Kong. The plaintiffs were assured that the sale was still intact, and the payment was guaranteed.
When the promised balance had not been received by early May, the frustrated clients texted Schiff about the delay. Grossman highlighted the urgent need for the funds to support his elderly in-laws’ move to an assisted living facility. In response, Schiff stated she was “working on it.” However, on May 8, Schiff allegedly conceded that the money owed from the Ghenie painting sale was gone. Grossman claims Schiff disclosed this during an in-person meeting before walking away from him.
