In a verdict that shakes the bustling LA art scene, Douglas J. Chrismas, an art dealer known for international dealings, has been convicted of embezzling hefty sums from a bankrupt gallery he once helped lead. According to a press release by the U.S. Attorney's Office, a jury found Chrismas guilty of nabbing more than $260,000 from Ace Gallery Los Angeles' bankruptcy estate.
At the spry age of 80, the former president and CEO of Art and Architecture Books of the 21st Century, the company behind Ace Gallery, Chrismas oversaw the gallery’s operations in both its Beverly Hills and Miracle Mile locations. After Ace Gallery filed for Chapter 11 bankruptcy in 2013, Chrismas remained at the helm as a fiduciary until an independent trustee took over in April 2016. It was during this period of control, that Chrismas illegally directed funds intended for the gallery into his own non-profit's coffers, as outlined during the four-day trial.
The Justice Department painted a clear picture of Chrismas' misdeeds, detailing how in the twilight moments of his tenure, he funneled a $50,000 check from the estate to Ace Museum, a separate entity in his clutches. Furthermore, Chrismas rerouted $100,000 from an art sale to the same museum, all while shuffling another $114,595 to cover the enormous monthly rent for his landlord at Ace Museum, rather than its rightful home in Ace Gallery's parched bank accounts.
United States District Judge Mark C. Scarsi has slated September 9 for sentencing, where Chrismas is set to face a maximum of 15 years behind bars – five for each count of embezzlement. The FBI's Art Crime Team played a crucial role in uncovering these financial shenanigans. The prosecution of the case fell to Assistant United States Attorneys Valerie L. Makarewicz of the Major Frauds Section and David W. Williams of the Criminal Appeals Section.
Information provided in response to a request from the press by Ciaran McEvoy, Public Information Officer, highlighted the investigative and prosecutorial efforts leading to Chrismas’ downfall. With the art dealer’s sentencing on the horizon, the Los Angeles art community awaits closure to a saga that's proven the age-old adage: where money and art mix, drama, and crime are often hiding in the wings.
