Art

Art Advisor Lisa Schiff Hit With ‘Ponzi Scheme’ Lawsuit After an Adrian Ghenie Art-Flipping Deal Goes Awry

Published

1 year ago

May 12, 2023

High profile art advisor Lisa Schiff has been hit with a lawsuit by two clients and longtime friends: real estate heiress Candace Barasch, and Richard Grossman.

The plaintiffs allege that Schiff, who runs the New York-based Schiff Fine Art advisory, owes them $1.8 million ($900,000 each) related to the sale of a painting by sought-after Romanian artist Adrian Ghenie. Barasch and Grossman filed a complaint in New York State Supreme Court on May 11. The causes of action are breach of contract, conversion, fraud, breach of fiduciary duty, and conspiracy.

The complaint appears to be yet another example of flipping art for profit gone wrong.

In addition to the money purportedly owed, the plaintiffs accuse Schiff of operating a “Ponzi scheme.” Their filing outlines Schiff’s alleged lavish spending, including a $25,000 a month New York apartment, international first class travel with concierge services and limousines, vacations at five-star hotels, and shopping sprees in New York and Europe for designer clothes and jewelry.

Meanwhile, the plaintiffs claim, Schiff doesn’t have the money she owes them. Knowledge of Schiff’s personal spending was allegedly gleaned from extensive travel and personal friendship with the advisor, the pair asserts.

Schiff’s attorney John Cahill declined to comment. Wendy Lindstrom, the attorney representing Grossman and Barasch, said “it is disgraceful that Schiff, who was trusted professionally and personally, exploited that trust.”

In April 2021, Schiff alerted Barasch and Grossman that a Ghenie painting, Uncle 3 (2019), was available for purchase. After discussions, including with Grossman’s spouse, who is not identified by name, they agreed to buy the work. The original purchase price is not disclosed in the court documents, however Barasch took a 50 percent share and Grossman and his spouse each acquired a 25 percent interest. Neither took possession of the work; it was shipped to a storage unit in Delaware.

Ghenie is a sought-after painter who is represented by mega-gallery Pace. His paintings evoke the torqued imagery of Francis Bacon portraits. “These figures, largely derived from mid-twentieth-century historical sources, appear in haunting interiors as dreamlike or cinematic vignettes,” the artist page on the Pace website reads. Ghenie appropriates tropes from slapstick film in his “Pie Fight” paintings, which mash up figuration and abstraction. The record for a Ghenie work sold at auction is $10.3 million for Pie Fight Interior 12 (2014), sold at Christie’s Hong Kong in May 2022.

In November 2022, Bartsch and Grossman agreed to a resale of the artwork, entering into the deal, to be brokered by Schiff, via oral agreement. They agreed to sell the work for $2.5 million and split the proceeds, after a commission to Schiff of ten percent of the price, or $250,000.

According to the complaint, the deal went through Sotheby’s Hong Kong and the work was delivered to the auction houses’s York Avenue headquarters in December 2022. Sotheby’s declined to comment.

In January, $225,000 of the sale proceeds were wired to Grossman and Barasch (a total of $450,000), and Schiff took her commission at the time, according to the complaint. Schiff promised to disburse the additional $1.8 million ($900,000 each) to the investors on March 26.

However, prior to March 26, Schiff “requested an additional thirty days to make the payment, asserting the delay was an accommodation to the purchasers in Hong Kong, but assuring Plaintiffs that the purchasers were not backing out of the sale, and guaranteeing that the $1.8 million payment would be made,” the complaint says.

By early this month, when neither client had received the balance of promised purchase price, they texted Schiff that they were frustrated with the delay. According to the complaint, Grossman had made it clear that “these proceeds were intended and necessary for the support of Grossman’s elderly in-laws, specifically for the cost of moving them from the hospital into an assisted living facility.” At that time, Schiff responded that she was “working on it….” the suit says.

However, on May 8, “Schiff conceded to Plaintiffs that the money owed to them from the sale of the Ghenie painting was gone,” the complaint asserts.

Grossman contends Schiff revealed this at a final in-person meeting. “For the first time, Schiff told him she did not have the money owed to Plaintiffs, and to call her attorney—and then walked away from him.”

Grossman and Barasch are demanding that Schiff return the $250,000 commission earned on the deal, plus interest, as well as “damages of least $2.05 million plus interest.”

Source link

Art

Calvin Lucyshyn: Vancouver Island Art Dealer Faces Fraud Charges After Police Seize Millions in Artwork

Published

6 days ago

September 13, 2024

Harry Miller

In a case that has sent shockwaves through the Vancouver Island art community, a local art dealer has been charged with one count of fraud over $5,000. Calvin Lucyshyn, the former operator of the now-closed Winchester Galleries in Oak Bay, faces the charge after police seized hundreds of artworks, valued in the tens of millions of dollars, from various storage sites in the Greater Victoria area.

Alleged Fraud Scheme

Police allege that Lucyshyn had been taking valuable art from members of the public under the guise of appraising or consigning the pieces for sale, only to cut off all communication with the owners. This investigation began in April 2022, when police received a complaint from an individual who had provided four paintings to Lucyshyn, including three works by renowned British Columbia artist Emily Carr, and had not received any updates on their sale.

Further investigation by the Saanich Police Department revealed that this was not an isolated incident. Detectives found other alleged victims who had similar experiences with Winchester Galleries, leading police to execute search warrants at three separate storage locations across Greater Victoria.

Massive Seizure of Artworks

In what has become one of the largest art fraud investigations in recent Canadian history, authorities seized approximately 1,100 pieces of art, including more than 600 pieces from a storage site in Saanich, over 300 in Langford, and more than 100 in Oak Bay. Some of the more valuable pieces, according to police, were estimated to be worth $85,000 each.

Lucyshyn was arrested on April 21, 2022, but was later released from custody. In May 2024, a fraud charge was formally laid against him.

Artwork Returned, but Some Remain Unclaimed

In a statement released on Monday, the Saanich Police Department confirmed that 1,050 of the seized artworks have been returned to their rightful owners. However, several pieces remain unclaimed, and police continue their efforts to track down the owners of these works.

Court Proceedings Ongoing

The criminal charge against Lucyshyn has not yet been tested in court, and he has publicly stated his intention to defend himself against any pending allegations. His next court appearance is scheduled for September 10, 2024.

Impact on the Local Art Community

The news of Lucyshyn’s alleged fraud has deeply affected Vancouver Island’s art community, particularly collectors, galleries, and artists who may have been impacted by the gallery’s operations. With high-value pieces from artists like Emily Carr involved, the case underscores the vulnerabilities that can exist in art transactions.

For many art collectors, the investigation has raised concerns about the potential for fraud in the art world, particularly when it comes to dealing with private galleries and dealers. The seizure of such a vast collection of artworks has also led to questions about the management and oversight of valuable art pieces, as well as the importance of transparency and trust in the industry.

As the case continues to unfold in court, it will likely serve as a cautionary tale for collectors and galleries alike, highlighting the need for due diligence in the sale and appraisal of high-value artworks.

While much of the seized artwork has been returned, the full scale of the alleged fraud is still being unraveled. Lucyshyn’s upcoming court appearances will be closely watched, not only by the legal community but also by the wider art world, as it navigates the fallout from one of Canada’s most significant art fraud cases in recent memory.

Art collectors and individuals who believe they may have been affected by this case are encouraged to contact the Saanich Police Department to inquire about any unclaimed pieces. Additionally, the case serves as a reminder for anyone involved in high-value art transactions to work with reputable dealers and to keep thorough documentation of all transactions.

As with any investment, whether in art or other ventures, it is crucial to be cautious and informed. Art fraud can devastate personal collections and finances, but by taking steps to verify authenticity, provenance, and the reputation of dealers, collectors can help safeguard their valuable pieces.

Art

Ukrainian sells art in Essex while stuck in a warzone – BBC.com

Published

2 weeks ago

September 2, 2024

Harry Miller

[unable to retrieve full-text content]

Ukrainian sells art in Essex while stuck in a warzone BBC.com

Source link

Art

Somerset House Fire: Courtauld Gallery Reopens, Rest of Landmark Closed

Published

1 month ago

August 18, 2024

Harry Miller

The Courtauld Gallery at Somerset House has reopened its doors to the public after a fire swept through the historic building in central London. While the gallery has resumed operations, the rest of the iconic site remains closed “until further notice.”

On Saturday, approximately 125 firefighters were called to the scene to battle the blaze, which sent smoke billowing across the city. Fortunately, the fire occurred in a part of the building not housing valuable artworks, and no injuries were reported. Authorities are still investigating the cause of the fire.

Despite the disruption, art lovers queued outside the gallery before it reopened at 10:00 BST on Sunday. One visitor expressed his relief, saying, “I was sad to see the fire, but I’m relieved the art is safe.”

The Clark family, visiting London from Washington state, USA, had a unique perspective on the incident. While sightseeing on the London Eye, they watched as firefighters tackled the flames. Paul Clark, accompanied by his wife Jiorgia and their four children, shared their concern for the safety of the artwork inside Somerset House. “It was sad to see,” Mr. Clark told the BBC. As a fan of Vincent Van Gogh, he was particularly relieved to learn that the painter’s famous Self-Portrait with Bandaged Ear had not been affected by the fire.

Blaze in the West Wing

The fire broke out around midday on Saturday in the west wing of Somerset House, a section of the building primarily used for offices and storage. Jonathan Reekie, director of Somerset House Trust, assured the public that “no valuable artefacts or artworks” were located in that part of the building. By Sunday, fire engines were still stationed outside as investigations into the fire’s origin continued.

About Somerset House

Located on the Strand in central London, Somerset House is a prominent arts venue with a rich history dating back to the Georgian era. Built on the site of a former Tudor palace, the complex is known for its iconic courtyard and is home to the Courtauld Gallery. The gallery houses a prestigious collection from the Samuel Courtauld Trust, showcasing masterpieces from the Middle Ages to the 20th century. Among the notable works are pieces by impressionist legends such as Edouard Manet, Claude Monet, Paul Cézanne, and Vincent Van Gogh.

Somerset House regularly hosts cultural exhibitions and public events, including its popular winter ice skating sessions in the courtyard. However, for now, the venue remains partially closed as authorities ensure the safety of the site following the fire.

Art lovers and the Somerset House community can take solace in knowing that the invaluable collection remains unharmed, and the Courtauld Gallery continues to welcome visitors, offering a reprieve amid the disruption.

Source link