Art dealer Douglas Chrismas, the former long-time owner of LA’s storied Ace Gallery, was arrested July 27, 2021 and charged with embezzling $260,000 from Ace Gallery’s bankruptcy estate. Chrismas pleaded not guilty and was released on $50,000 bond. He was spotted by a writer for Artillery at the opening session of the Felix Art Fair held at the Hollywood Roosevelt Hotel two days after his arrest.

Doug Chrismas

Ace filed for bankruptcy in 2013. In 2016 the bankruptcy trustee, Sam Leslie (who physically ran the gallery in bankruptcy for almost two years until its closure), filed a report with the bankruptcy court finding that Chrismas had diverted approximately $17 million to a shell corporation he controlled. It was well known in LA art circles that the FBI was investigating Chrismas as a result of the reports Leslie filed. Why it took the feds five years after these reports were filed to charge Chrismas and why he was not charged with embezzling more than the amount in the indictment is unknown at this time. According to The New York Times, the charges carry a 15-year maximum sentence and Chrismas is 77 years old.

Artillery published an expose of the Ace bankruptcy and the actions of Chrismas in the July, 2016 issue, written by the late Charles Rappleye, husband of editor Tulsa Kinney.  Rappleye combed through the bankruptcy filings, including those of Leslie and the accountant Leslie hired to examine Ace’s books, reporting that Leslie found indicia of potential bankruptcy fraud and millions in funds diverted to Chrismas’ wholly-owned shell corporation, Ace Gallery New York, which had been formed by Chrismas shortly before putting Ace Gallery (LA) into bankruptcy. Rappleye also reported that Leslie fired Chrismas after he found he “could not trust him to run the affairs of the business.” The day before Leslie took over, Chrismas moved 60 pieces of art from the gallery to storage space off-premises, claiming he personally owned them.

Rappleye further reported that Leslie discovered that there was no coherent inventory of the thousands of artworks on the Ace premises and in a warehouse. During the course of the bankruptcy—which remains open—artists, including Mary Corse, Gary Lang and DeWain Valentine, filed claims with the bankruptcy court to re-claim their artwork or proceeds from their sale and dozens of other artists were listed as creditors. Christmas’ trial is set for September 21.