The legal wrangling continues in the bitter, high-stakes court battle between art consultant Lisa Schiff and her former longtime client and close friend, real estate heiress Candace Barasch.
In two lawsuits, Barasch claims that Schiff owes her and co-plaintiffs with whom she owns various works at least $2.5 million plus interest and damages for a series of art purchases Schiff was supposed to facilitate that were only partially completed or never completed.
In motions filed last month, Schiff had sought to dismiss the case and end any attempts to freeze or restrict its assets as it tried to settle a tangle of claims — a claim that Barasch and other plaintiffs have strenuously opposed. Last week, Judge Lucy Billings partially upheld Barasch’s motions, limiting what Schiff can sell or access in terms of both the proceeds of art sales under consideration in the case and his personal assets.
Neither Barasch’s attorney nor Schiff’s attorney responded to a request for comment.
Barasch and two co-investors are seeking the return of $1.8 million, or $900,000 each, which they claim is the remainder owed on the $2.5 million sale of a work by sought-after Romanian painter Adrian Ghenie that was brokered by Schiff. Barasch’s co-investors and co-plaintiffs are Richard Grossman and his wife, who was not named in the lawsuit but is known to be veteran art dealer Adam Sheffer. Another separate lawsuit involves Barasch, alongside her husband Michael, and trusts established on behalf of their children as plaintiffs.
Following the discovery of Ghenie’s missing proceeds in early May, Barasch says she has found information regarding at least a dozen other art transactions where the money she paid is missing or not accounted for, or where the works have only been partially paid for, or not paid for, or are held in Schiff’s name and cannot be returned to Barasch despite her requests. In the latest approval, the judge restricted Schiff’s access to Ghenie’s sale proceeds.
Barasch’s latest filings pile up on the allegations in a no-nonsense legal case.
The most recent series includes the claim that Schiff “deliberately misled and lied about the use of [plaintiffs’] funds,” and disputes Schiff’s claim that she voluntarily “reported” financial problems to government authorities.
“The defendants have not been charged with any state or federal crime, and even if they are, a stay of this action is neither required nor appropriate. Further, whether or not Schiff is charged, there is no guarantee that any criminal proceeding will involve restitution to the plaintiffs,” according to the memo filed by Barasch’s attorneys.
Barasch states that, by his own admission, Schiff contacted other creditors, employees, vendors, and customers, but provided no information about artworks and funds specifically owned by Barasch.
In response to Schiff and his attorney’s claim that the Barasch saw a positive return of over $10 million from supporting and facilitating Schiff’s art deals over approximately two decades, they point out that Schiff allegedly made a commission of $1 million on those sales (ten percent), as well as that Barasch almost always used those profits to purchase more art.
He continues: “Essentially, the defendants’ argument is that theft is acceptable if committed by wealthy people. It’s not the law.”
In a separate memo, also part of the recent deluge of filings in the case, Barasch’s attorneys doubled down on Schiff’s seemingly lavish expenses, even though he was allegedly engaged in fraud at the heart of the business.
The note describes a month of June 2019 vacation to Mykonos, Greece, where Schiff reportedly traveled by helicopter, stayed at a private hotel villa with driver on call 24/7 and private yacht charter for a day. Meanwhile, in New York, they claim she entered into a ten-year lease for a two-story Tribeca storefront, which has been renovated to the tune of over a million dollars, including installing custom finishes. “These are Ms. Schiff’s decisions,” the memo read.
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