A noted Los Angeles art dealer was found guilty Friday of embezzling more than $260,000 from the bankruptcy estate of Ace Gallery, a Miracle Mile-based art gallery, while acting as the estate’s trustee and custodian.
Douglas J. Chrismas, 80, of the Mid-Wilshire area of Los Angeles, was found guilty in downtown Los Angeles of three counts of embezzlement against a bankruptcy estate, according to the U.S. Attorney’s Office.
U.S. District Judge Mark C. Scarsi scheduled a Sept. 9 sentencing hearing, at which time Chrismas will face up to 15 years in federal prison.
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 Los Angeles.
In February 2013, Ace Gallery filed a Chapter 11 bankruptcy petition in Los Angeles and continued to operate as a bankruptcy estate with Chrismas acting as the gallery’s president, trustee, custodian and overseer of its operations, evidence showed.
In this role, Chrismas also had access to the gallery’s property. Chrismas 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, according to the indictment.
In late March and early April of 2016, Chrismas embezzled about $264,595 that belonged to the Ace Gallery bankruptcy estate, including a $50,000 check that Chrismas signed, was drawn against the estate and was paid to a separate corporation that Chrismas owned and controlled, the jury in Los Angeles federal court found.
Chrismas also embezzled $100,000 owed to Ace Gallery by a third party for the purchase of artwork but the funds instead were paid — at his direction — to his separate corporation.
Finally, Chrismas embezzled about $114,595 owed to the gallery by a third party that purchased artwork, but which Chrismas instead paid to the gallery’s landlord to keep current with its $225,000 monthly rent.