Douglas J. Chrismas Sentenced to Two Years in Federal Prison and Restitution
Douglas J. Chrismas, an internationally known art dealer, was sentenced Monday to 24 months in federal prison for embezzling more than $260,000 from the bankruptcy estate of Ace Gallery Los Angeles while serving as the estate’s trustee and custodian.
Chrismas, 80, of Los Angeles’ Mid-Wilshire neighborhood, was also ordered by U.S. District Judge Mark C. Scarsi to pay $12.8 million in restitution.
In May 2024, a federal jury found Chrismas guilty of three counts of embezzlement against a bankruptcy estate following a four-day trial.
“Instead of performing his fiduciary duty and properly managing the gallery’s bankruptcy estate, this defendant chose to misuse funds that should have gone to creditors,” U.S. Attorney Martin Estrada said in a statement. “Today’s sentence serves as a just punishment for his brazen theft and exploitation of a system meant to protect those in financial desperation.”
Chrismas, who was the president and CEO of Art and Architecture Books of the 21st Century, which operated as Ace Gallery, filed for Chapter 11 bankruptcy in February 2013. The gallery, located in Beverly Hills and Los Angeles, continued to operate under Chrismas’ oversight as trustee.
Evidence presented at trial showed that between late March and early April 2016, Chrismas embezzled approximately $264,595 from the estate. This included:
- A $50,000 check was drawn against the estate and paid to Ace Museum, a nonprofit organization he owned and controlled.
- $100,000 owed to Ace Gallery by a third party for artwork, which Chrismas redirected to Ace Museum.
- $114,595 owed to Ace Gallery for a separate artwork purchase, which Chrismas used to pay Ace Museum’s landlord to cover its $225,000 monthly rent.
Chrismas’ actions ultimately led to the appointment of an independent trustee by the bankruptcy court in April 2016, effectively removing him from managing the estate.
Chrismas funneled money from Ace Gallery’s estate for years, prosecutors said, with the funds going toward a failed vision of establishing a museum.
“This was not simply mismanagement—it was theft,” said Estrada.
The FBI’s Art Crime Team conducted the investigation, which revealed the extent of Chrismas’ financial misconduct. Assistant U.S. Attorney Valerie L. Makarewicz of the Major Frauds Section prosecuted the case. Chrismas is expected to begin serving his sentence soon.
