Stanley Chais

Stanley Chais (March 27, 1926 – September 26, 2010) was an American investment advisor and philanthropist who operated "feeder funds" which collected money for funds related to the Madoff investment scandal.

Biography

Early life

Stanley Chais was born on March 27, 1926 in Bronx, New York.

Involvement in Madoff's Ponzi scheme

Chais operated three funds that offered returns of up to 25%. He told clients that he achieved the returns using a complex combination of derivatives, stock, currency and futures trading. Instead, the funds were merely funneled into Madoff's Ponzi scheme.

On May 1, 2009 Irving Picard, bankruptcy trustee for Madoff Securities, filed a lawsuit against Stanley Chais. The complaint alleges he "knew or should have known" he was deep in a Ponzi scheme when his family investments with Madoff averaged 40% and sometimes soared as high as 300%. It also claims Chais was a primary beneficiary of the scheme for at least 30 years, allowing his family to withdraw more than $1 billion from their accounts since 1995 - money that belonged to Madoff victims. The case number is Picard v. Chais, 09-01172. On June 22, 2009, the Securities and Exchange Commission filed civil fraud charges against Chais. On September 23, 2009, California Attorney General Jerry Brown filed a lawsuit against Chais seeking $25 million in penalties and restitution for victims.