LA Art Dealer Charged with Embezzlement

LOS ANGELES – Douglas J. Chrismas, a 77-year-old art dealer from the Mid-Wilshire area of Los Angeles, has been arrested on federal charges accusing him of embezzling more than $260,000 from the bankruptcy estate of Ace Gallery, a Miracle Mile-based art gallery.

Chrismas, who served as the president, trustee, custodian, and overseer of Ace Gallery, allegedly embezzled funds while the gallery was operating under Chapter 11 bankruptcy protection. The indictment alleges that Chrismas embezzled approximately $264,595 from the gallery’s bankruptcy estate, including a $50,000 check that he signed and drew against the estate, which was paid to a separate corporation that he owned and controlled.

The indictment also alleges that Chrismas embezzled $100,000 owed to Ace Gallery by a third party for the purchase of artwork, but the funds instead were paid to his separate corporation at his direction. Additionally, Chrismas allegedly embezzled approximately $114,595 owed to the gallery by a third party that purchased artwork, but which he instead had paid to a creditor of his separate corporation.

Chrismas was ordered released on $50,000 bond and has pleaded not guilty to the charges. A September 21 trial date has been scheduled in this matter. If convicted of all charges, Chrismas would face a statutory maximum sentence of 15 years in federal prison.

The FBI’s Art Crime Team and the Office of the United States Trustee investigated this matter, with Assistant United States Attorney Valerie L. Makarewicz of the Major Frauds Section prosecuting the case.

Chrismas was the president and CEO of Art and Architecture Books of the 21st Century, which did business as Ace Gallery and was located on the Miracle Mile in the City of Los Angeles. He remained in control over Ace Gallery until April 2016, when an independent bankruptcy trustee was appointed to run the bankruptcy estate and Chrismas was removed as trustee and custodian.

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

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