Picard Continues Pursuit of Chais Related Claims

from Wall Street Journal (subscription required):

Madoff Trustee Gets OK to Pursue Chais-Related Claims

The trustee seeking to recover assets for victims of Bernard Madoff’s fraud can continue to pursue claims against family members of Los Angeles money manager Stanley Chais and related entities, a federal judge has ruled.

… Mr. Picard has alleged that Mr. Chais’s daughter and two sons, as well as trusts created for his family’s benefit, knew or should have known Mr. Madoff was engaged in a fraud and that they failed to conduct reasonable due diligence.

“The trustee may or may not prove the requisite facts to establish the elements of his claims after discovery and a trial on the merits,” U.S. Bankruptcy Judge Burton R. Lifland said. “Nevertheless, the trustee’s claims have been adequately pled.”