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Published on January 13, 2025
Los Angeles Art Dealer Douglas J. Chrismas Sentenced To 2 Years For Embezzlement, Ordered to Pay $12 MillionSource: Blogtrepreneur, CC BY 2.0, via Wikimedia Commons

Art dealer Douglas J. Chrismas, 80, is set to spend two years in federal prison following his conviction for embezzling from the Ace Gallery Los Angeles' bankruptcy estate. According to the U.S. Attorney's Office, he was sentenced by United States District Judge Mark C. Scarsi, who also ordered Chrismas to pay restitution totaling over $12 million. The dealer, well-known in international art circles, was found guilty of three counts of embezzlement during a four-day trial in May 2024. Details provided by the U.S. Attorney's Office highlight the misuse of funds, including a $50,000 check earmarked for the museum but redirected to Chrismas' non-profit corporation.

Miracle Mile and Beverly Hills-based Ace Gallery, which filed for Chapter 11 bankruptcy in February 2013, continued operating under Chrismas’ management, which was expected to properly oversee its financial affairs. However, over three years, evidence presented at trial showed that Chrismas consistently siphoned off funds, totaling approximately $264,595, that were intended to be used to satisfy the gallery's creditors. These embezzlements included $100,000 from an art sale that was, instead, transferred directly to Chrismas’ separate corporation. United States Attorney Martin Estrada expressed in a statement that the convicted art dealer chose to "brazenly undertaken by a thief who gamed a system designed to protect those in financial desperation."

The Justice Department's release details further financial misdealings by Chrismas, including the misdirection of $114,595 owed to Ace Gallery from another artwork transaction to pay rent for the Ace Museum. This rent payment was meant to help keep the museum afloat, which at the time was facing a hefty monthly rent of $225,000. The court acted to appoint an independent trustee in April 2016, which effectively ended Chrismas' tenure as the fiduciary of the Ace Gallery's bankruptcy estate following noticeable irregularities in the gallery's finances.

The investigation, which unearthed Chrismas' dealings, was conducted by the FBI’s Art Crime Team, leading to the subsequent trial and conviction. Assistant United States Attorney Valerie L. Makarewicz of the Major Frauds Section prosecuted the case.