Madoff case trustee files complaint against Chais
The trustee overseeing the liquidation of financier Bernard Madoff’s assets filed a complaint Friday against Beverly Hills money manager and philanthropist Stanley Chais, accusing him and related parties of unjustly receiving more than $1 billion from Madoff’s Ponzi scheme.
Chais and his companies and family trusts “collectively profited from this scheme through the withdrawal of more than $1 billion, and knew or should have known that they were reaping the benefits” of Madoff’s misconduct, Irving Picard said in the complaint filed in U.S. Bankruptcy Court.
Picard wants the money returned so it can be distributed to the scheme’s victims.
Chais couldn’t be reached for comment. He also faces a number of lawsuits filed by his clients accusing him of failing to properly safeguard their money and not disclosing that he was investing with Madoff.
Madoff, 71, pleaded guilty in March in federal court. He faces a prison sentence of as long as 150 years.