LOS ANGELES
Renowned art dealer Douglas J. Chrismas, 80, was sentenced to 24 months in federal prison and ordered to pay $12.8 million in restitution for embezzling funds from the bankruptcy estate of Ace Gallery Los Angeles while serving as its trustee, officials stated,
Chrismas, the former president and CEO of Art and Architecture Books of the 21st Century (operating as Ace Gallery), was convicted in May 2024 of three counts of embezzlement against a bankruptcy estate, according to officials.
The crimes occurred between late March and early April 2016 and involved $264,595 misappropriated from Ace Gallery to benefit Ace Museum, a nonprofit entity Chrismas owned and controlled.
U.S. Attorney Martin Estrada condemned Chrismas for abusing his fiduciary role, stating, “Today’s sentence is a just punishment for brazen crimes that exploited a system meant to protect creditors.”
The embezzled funds included a $50,000 check, $100,000 from artwork sales redirected to Ace Museum, and $114,595 used to cover Ace Museum’s rent.
Chrismas continued this fraudulent activity for over three years until April 2016, when an independent trustee was appointed to oversee the bankruptcy estate.
According to the Art Newspaper, … over the succeeding five decades, he and the gallery also became a magnet for lawsuits brought by artists over alleged theft and non-payment, as well as for informal but public accusations of operational misconduct.
The FBI’s Art Crime Team conducted the investigation, and Assistant United States Attorney Valerie L. Makarewicz of the Major Frauds Section prosecuted the case.