Former art adviser to Leonardo DiCaprio sentenced for $6.5 million fraud

A New York art adviser who once counted Oscar-winning actor Leonardo DiCaprio among her wealthy patrons was sentenced Wednesday to 30 months in federal prison after admitting to cheating clients out of $6.5 million in connection with the sale of 55 works of art.

Lisa Schiff sobbed as she turned to her former friends and clients seated behind her in Manhattan federal court and apologized to them by name.

“I stand here as a criminal who hurt clients, colleagues, and friends,” the 54-year-old Manhattan resident said, calling herself a “coward” for hiding her deceit and “living lavishly” off money stolen from people who had “loved and trusted” her.

The lavish lifestyle included a $25,000-a-month apartment, a $2 million space for her business and grand trips to Europe, complete with shopping sprees at designer boutiques and stays at luxury hotels.

“I am a guilty person and I am prepared to face my punishment,” Schiff said tearfully. “I am scared, but I am ready.”

Schiff is to report to prison on 1 July.

Prosecutors say among those she swindled were 12 clients, an artist, the estate of another artist and an art gallery.

One of Schiff's victims, Michael Barasch, told the court that his family had embraced her as one of their own, inviting her to family gatherings and holiday parties.

“Your disgraceful conduct goes well beyond stolen money,“ he said. “You broke my wife’s heart. You were her best friend, or so she thought.”

Barasch estimated that Schiff’s victims stand to lose as much as $10 million when considering the costs of lawyers and other experts they’ve hired to try to recoup some of their losses through litigation.

“We’ll be lucky to get five cents on the dollar. No victim will ever be made whole,” he said. “Shame on you.”

Judge J. Paul Oetken, in handing down the sentence, called Schiff’s crimes “quite brazen,” noting her fraud persisted for roughly five years and involved more than a dozen clients.

Schiff also was sentenced to two years of supervised release, ordered to pay forfeiture of nearly $6.5 million and restitution of more than $9 million.

Wire fraud carries a sentence of up to 20 years in prison, but, as part of Schiff’s plea deal, prosecutors recommended a sentence of around 3 1/2 to 4 1/4 years behind bars.