U.S. Attorney E. Martin Estrada | U.S. Department of Justice
An art dealer has been sentenced to two years in federal prison for embezzling from the bankruptcy estate of Ace Gallery Los Angeles. Douglas J. Chrismas, 80, was sentenced by United States District Judge Mark C. Scarsi and ordered to pay $12,809,192 in restitution.
Chrismas was found guilty of three counts of embezzlement against a bankruptcy estate after a four-day trial concluded in May 2024. 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 to make them whole, but for his dream of an art museum that never came to be.” Estrada added that the sentence is "a just punishment for these crimes."
As president and CEO of Art and Architecture Books of the 21st Century, doing business as Ace Gallery, Chrismas had offices in both Beverly Hills and Los Angeles's Miracle Mile area. In February 2013, Ace Gallery filed a Chapter 11 petition in federal bankruptcy court while continuing operations with Chrismas acting as its fiduciary and trustee.
The embezzlement took place between late March and early April 2016 when Chrismas misappropriated approximately $264,595 from the Ace Gallery bankruptcy estate. This included a $50,000 check paid to Ace Museum—a separate non-profit corporation owned by Chrismas—and $100,000 owed to Ace Gallery by a third party for artwork purchases redirected under his direction to Ace Museum.
Additionally, he embezzled about $114,595 owed by another third party for artwork purchases which he instead used to pay rent for Ace Museum's landlord. The scheme continued until April 2016 when an independent trustee was appointed by the bankruptcy court.
The FBI’s Art Crime Team conducted the investigation into this matter. Assistant United States Attorney Valerie L. Makarewicz from the Major Frauds Section prosecuted the case.
