Art News: Former High Museum COO Brady Lum pleads guilty in federal theft case

Brady Lum pleaded guilty July 13 to one federal count concerning programs that received federal funds when he was the chief operating officer at the High Museum of Art. U.S. District Judge Michael L. Brown is scheduled to sentence him on November 2.

For Atlanta’s arts community, the case has drawn unusual attention because it involves one of the city’s flagship cultural institutions and raises broader questions about financial oversight, governance and public trust at nonprofit arts organizations.

The statute carries a maximum penalty of 10 years in prison, no mandatory minimum prison sentence, up to three years of supervised release, a fine of up to $250,000 (or twice the gain or loss), restitution to the High Museum and forfeiture of assets connected to the offense. Those are statutory maximums — not a prediction of what Lum will receive. Brown has broad discretion in determining the final sentence.

Although U.S. Attorney Theodore S. Hertzberg previously said publicly that those who steal from taxpayer-supported institutions should face prison time, the plea agreement filed Monday recommends a lower-end sentence. Assuming Lum continues to accept responsibility and complies with the agreement, prosecutors will recommend a sentence at the low end of the applicable federal sentencing guideline range.

That recommendation is not binding. Brown may impose a higher or lower sentence than either side recommends, including probation if he determines it is appropriate under federal law.

The advisory sentencing guideline range has not yet been calculated publicly. Before sentencing, the U.S. Probation Office will prepare a presentence investigation report, which analyzes factors that include the amount of financial loss, Lum’s criminal history and any applicable sentencing enhancements before recommending an advisory guideline range.

Lum has agreed to repay the High Museum, but the final restitution amount has not yet been determined. Prosecutors have publicly stated that the losses exceeded $600,000, but the exact figure will be established before sentencing.

According to federal prosecutors, the scheme lasted for years and involved more than 700 reimbursement requests. Most individual transactions were allegedly kept below $1,000, a pattern prosecutors say helped the purchases avoid scrutiny.

Prosecutors allege Lum used museum funds for personal purchases including luxury guitars, music equipment, private music lessons and woodworking equipment. They further allege that he altered invoices, approved expenses using his delegated authority and spread purchases across multiple cost centers to conceal their true nature.

As part of the plea agreement, federal prosecutors agreed not to pursue additional federal criminal charges arising from the conduct covered by the case. The agreement does not prevent prosecution by another jurisdiction, although no such charges have been announced.

Before sentencing, Lum must cooperate in determining restitution, disclose financial information, assist in identifying assets and refrain from selling or transferring significant assets without government approval.

Lum also waived most of his rights to appeal his conviction or sentence, with limited exceptions, including if he receives a sentence above the advisory guideline range or later raises claims such as ineffective assistance of counsel.

The next major milestone is the November 2 sentencing hearing. Before then, the court will receive the presentence investigation report, hear arguments from both sides, consider any victim impact statements (potentially including one from the High Museum) and weigh the sentencing factors required under federal law before deciding whether Lum receives probation, prison or another combination of penalties.

Matthew Terrell works as a writer, artist, filmmaker and educator in Atlanta.