A high-end art dealer was found guilty of swindling more than $260,000 from a bankrupt Los Angeles art gallery, federal officials announced today.
According to the US Attorney’s Office, 80-year-old Douglas J. Chrismas of Los Angeles was convicted of three counts of embezzlement against a bankruptcy estate for his role in siphoning off funds from the Ace Gallery, a Beverly Hills and Miracle Mile art gallery.
The scheme began in February 2013, when Ace Gallery filed for Chapter 11 bankruptcy. Chrismas, who was the gallery’s president and CEO, acted as its fiduciary and trustee, giving him control over the gallery’s finances. But instead of keeping the gallery afloat, Chrismas used his position to embezzle hundreds of thousands of dollars from the bankruptcy estate.
Prosecutors alleged that Chrismas embezzled $264,595 from the gallery, including a $50,000 check that he signed and had paid to Ace Museum, a non-profit corporation that he owned and controlled. He also diverted $100,000 owed to the gallery by a third party, and used it to pay Ace Museum’s landlord to keep current with its monthly rent of $225,000.
The FBI’s Art Crime Team investigated the case, and Assistant US Attorneys Valerie L. Makarewicz and David W. Williams are prosecuting the case. Chrismas faces up to five years in federal prison for each count at his sentencing hearing on September 9.
The conviction is a major blow to the art world, where embezzlement and financial scams are not uncommon. The case highlights the need for greater oversight and transparency in the art industry, where the wealthy and powerful often wield significant influence.
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Key Facts
- State: California
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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