The already complex legal saga surrounding the liquidation of Lisa Schiff’s assets has taken a new turn, with recent court filings indicating potential criminal investigations and a federal grand jury subpoena looming over the former art dealer. Documents from the New York County Supreme Court have unveiled a heated exchange between Schiff’s attorney, John Cahill, and Douglas Pick, who has been assigned to oversee the distribution of Schiff’s assets, shedding light on the mounting legal challenges she faces.
The contentious legal battle is marked by a flurry of exhibits, including email correspondence between Cahill and Pick. One exhibit mentions Schiff’s exposure to a Federal Grand Jury subpoena and ongoing investigations by both the U.S. Attorney’s Office and the New York District Attorney. The New York District Attorney’s Office declined to comment, while the U.S. Attorney’s office remained silent.
Schiff’s fall from grace began when a civil suit, filed by her former client Candace Barasch and others, revealed her failure to remit $1.8 million owed on the resale of an Adrian Ghenie painting. Subsequently, a $3.3 million related suit by Barasch and her husband led to Schiff’s decision to close her art advisory business and file for insolvency reorganization in mid-May.
Recent documents exposed the complexity of Schiff’s financial woes, with approximately 50 creditors claiming portions of her assets, some with claims as high as $1 million. Additionally, 894 items in Schiff’s inventory, valued at $3.9 million, have been appraised by the Winston Art Group, while 108 works worth $1.1 million are allegedly missing, potentially involving third-party claimants.
The latest filings highlight disputes between Cahill and Pick, complicating the progress of the asset liquidation process. Although these disagreements are somewhat tangential to the investigations, they underscore the protracted nature of the legal battles surrounding Schiff’s business.
Cahill’s motion last week called for Pick’s removal as assignee and raised objections to the delivery of computers and data storage. He also questioned the retention of Pick’s law firm and an accounting firm, Eisner Advisory Group, known for its size and expenses.
Pick responded with a 13-page cross motion, detailing his efforts to access inventory and accounting records without incurring additional fees. He pointed out that the retention of Eisner Advisory Group had been communicated earlier, contrary to Cahill’s claims of surprise, and defended the decision to retain his own firm for the case.
Pick’s email to Cahill on August 4 suggested cooperation to locate the missing inventory but was met with resistance from Cahill, who insisted that Schiff should be the sole decision maker in such matters.
The legal turmoil shows no signs of abating as Pick continues to investigate Schiff’s financial affairs, including her bank accounts and transactions. Offers on artwork and inventory are being considered, with all sales subject to court approval, as the legal saga surrounding Lisa Schiff’s assets unfolds.