NEW YORK CITY, NEW YORK: American Express has reportedly filed a lawsuit against Lisa Schiff, the president of SFA Advisory, for an alleged debt of $500,000.
The lawsuit arrives in the midst of a series of legal challenges for Schiff, who has been accused of fraudulent activities and operating a Ponzi scheme by two of her former clients, Richard Grossman and Candace Barasch, per Artnet.
This fresh lawsuit by American Express intensifies the escalating legal pressure on New York's art connoisseur.
Who is Lisa Schiff?
Born in Miami, Lisa Schiff is a distinguished art advisor who has made her mark in New York. Her expertise lies in modern and contemporary art, and she is the driving force behind SFA Advisory (Schiff Fine Art), which has branches in New York, Los Angeles, and London.
Her clientele is diverse, ranging from individuals and corporations to foundations and institutions. Despite facing recent legal challenges over allegations of fraud and embezzlement, Schiff’s influence in the art world is undeniable, particularly through her collaboration with actor Leonardo DiCaprio and his foundation, per NY Times.
American Express sues Lisa Schiff
American Express National Bank, which provides business cards for Schiff and her company, Schiff Fine Art, LLC, has accused them of failing to meet minimum payments in recent months.
Schiff is reportedly in arrears by hundreds of thousands of dollars, violating her agreement with the bank, which has led to a lawsuit against her in the New York Supreme Court.
Schiff’s dramatic downfall began when two affluent clients claimed she owed them $1.8 million and accused her of operating a Ponzi scheme in a lawsuit filed with the New York Supreme Court.
Following the initial report of the lawsuit by The Daily Beast, Schiff faced further accusations of financial irregularities from others in the art world.
A subsequent lawsuit alleged that Schiff misused millions intended for the purchase of luxury art to settle debts and fund her extravagant lifestyle.
In a matter of days, Schiff announced the closure of her company, leaving her New York and London offices vacant. The possibility of criminal charges has significantly damaged her reputation in the art world.
Schiff reportedly led an extravagant lifestyle
Subsequent court documents revealed a multitude of additional lawsuits against Schiff, with various parties demanding repayment of hundreds of thousands of dollars each.
Despite her alleged failure to repay her clients and her bank, Schiff led an extravagant lifestyle. According to court documents, she lived in an apartment that cost $25,000 per month and sent her son to a pricey private school.
During a trip to Paris, she even humorously remarked on social media that she engaged in "ZERO cultural activities besides explosive shopping."
"So when I can’t pay my Amex, I am going to file an Insurance claim. I know it’s going to work," she stated.
Accusations of unpaid debts and unjust enrichment
According to American Express, the last payment received in Schiff’s account was in June, amounting to $14,569. Since then, Schiff has allegedly failed to pay even the minimum account balance, accumulating a total debt of $509,678.32.
American Express further alleges that the funding they provided enabled Schiff to unjustly enrich herself. They have stated their intention to seek damages related to her "unjust enrichment," the amount of which will be determined at trial.
