Madoff Trustee Sues High-Profile LA Investor

Law360, New York (May 4, 2009, 12:00 AM EDT) -- The trustee overseeing the liquidation of Bernard L. Madoff's investment firm has accused a Los Angeles money manager and philanthropist of benefiting from Madoff's Ponzi scheme for at least 30 years, fraudulently withdrawing more than $1 billion just since 1995 in “fictitious profits” from a slew of accounts.

The trustee, Irving H. Picard, filed the lawsuit against investor Stanley Chais and several of his family members on Friday in the U.S. Bankruptcy Court for the Southern District of New York.

Chais is an unregistered investment adviser...
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