Fremont Bankruptcy Attorney comments on how the Bernard Madoff Ponzi scheme has landed a Madoff associate in bankruptcy court.
Fremont Bankruptcy Attorney comments on how the Bernard Madoff Ponzi scheme has landed an associate in bankruptcy court
In 2008 the most massive Ponzi scheme ever created in the United States came crashing down on financier Bernard Madoff and his associates. Madoff’s scheme cost investors upwards of $65 billion and the federal government and private lawsuits are seeking to recover as much as possible. Last week a bankruptcy court judge froze the assets of Stanley Chais, a Beverly Hills money manager accused of directing hundreds of millions of dollars from his clients into Madoff’s nonexistent investment fund.
The bankruptcy court judge overseeing Madoff’s Chapter 7 bankruptcy filing allowed Chais and his wife access to $100,000 of their accounts to cover legal and living expenses, but has frozen the remainder of their assets as the case moves through bankruptcy court. Court documents accuse Chais of funneling more than $800 million of his clients’ money to Madoff and his bankrupt investment fund. A forensic audit also shows that more than $45 million was transferred from Madoff to Chais in 2008 as the Ponzi scheme was collapsing.
The Securities Investor Protection Corporation trustee, Irving Picard, is seeking the money transferred from Madoff to Chais to repay investors defrauded as part of Madoff’s investment scheme. The SIPC has filed suit against Madoff, family members, and numerous investment firms and advisors that were funneling money to Madoff’s investment fund.
Judge freezes assets of Madoff figure Stanley Chais, LATimes.com, October 9, 2009
SIPC v. BERNARD L. MADOFF INVESTMENT SECURITIES LLC Madoff Watch, Law.com
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