Madoff Trustee Sues Stanley Chais for $1 Billion
According to The New York Times,
“A court-appointed trustee in the Bernard L. Madoff case has accused Stanley Chais, an investment manager and prominent Los Angeles philanthropist, of routinely getting “implausibly high” returns on his family’s Madoff accounts – profits so high that he should have known they were the product of a fraud.
The trustee also asserted that Mr. Chais and members of his family withdrew more than $1 billion from their Madoff accounts since 1995 and “untold additional funds” in previous years – money that actually belonged to other Madoff investors, who thought their funds were being invested.
The complaint said that Mr. Chais was a primary beneficiary of that Ponzi scheme for at least 30 years, reaping annual returns on his family accounts that averaged 40 percent and were sometimes as high as 300 percent.
[the suit] cited 35 times between 1996 and 2007 when Chais family accounts had annual returns of more than 100 percent, and 125 times when the returns exceeded 50 percent. In 1999, one trust fund had profits of more than 300 percent, it said.”
Here is the complete article, Suit in Madoff Case Says a Manager Was Favored.