An art dealer has been sentenced to two years in federal prison for embezzling funds from the bankruptcy estate of Ace Gallery Los Angeles. Douglas J. Chrismas, 80, from the Mid-Wilshire area of Los Angeles, was found guilty by a jury in May 2024 on three counts of embezzlement against a bankruptcy estate. United States District Judge Mark C. Scarsi also ordered Chrismas to pay $12,809,192 in restitution.
Chrismas served as the president and CEO of Art and Architecture Books of the 21st Century, operating under the name Ace Gallery with locations in Miracle Mile and Beverly Hills. In February 2013, Ace Gallery filed for Chapter 11 bankruptcy but continued operations with Chrismas acting as its fiduciary and trustee.
Between late March and early April 2016, Chrismas embezzled approximately $264,595 from the Ace Gallery bankruptcy estate. This included a $50,000 check signed by Chrismas that was paid to Ace Museum, a separate non-profit he owned and controlled. Additionally, he directed $100,000 owed to Ace Gallery by a third party for artwork purchases to be paid to Ace Museum instead. Furthermore, about $114,595 owed by another third party was used to pay rent for Ace Museum's landlord.
United States Attorney Martin Estrada commented on the case: “Instead of performing his fiduciary duty and properly managing the gallery’s bankruptcy estate, this defendant chose to use funds that belonged to the creditors of the gallery... Today’s sentence provides a just punishment for these crimes.”
The FBI's Art Crime Team conducted an investigation into this matter. Assistant United States Attorney Valerie L. Makarewicz from the Major Frauds Section prosecuted the case.