Tags: madoff | money | manager

Probe Targets Money Manager Linked to Madoff

Friday, 11 Dec 2009 04:59 PM

Hollywood money manager Stanley Chais is under investigation in the criminal case of imprisoned swindler Bernard Madoff, court records showed on Friday, the first anniversary of disclosure of the multibillion dollar investment fraud.

U.S. prosecutors in New York asked a judge to allow them to intervene in the Securities and Exchange Commission civil case against Chais "and stay discovery for six months pending the resolution of an ongoing, parallel criminal investigation."

In October, his lawyers denied SEC allegations that Chais, known for handling investments for Hollywood's elite, including director Steven Spielberg, oversaw three funds that invested all of their assets with Madoff, ignoring red flags that Madoff's returns were false.

Madoff is serving a 150-year prison sentence after pleading guilty to orchestrating Wall Street's biggest investment fraud of as much as $65 billion over two decades. Madoff was arrested and charged on Dec. 11 last year.

The SEC accused Chais in a June lawsuit of holding himself out for 40 years as an investing wizard, but did nothing more than turn investors' assets over to Madoff, losing clients nearly $1 billion while pocketing $250 million in fees.

 

© 2015 Thomson/Reuters. All rights reserved.

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