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Madoff trustee sues philanthropist, others

Bloomberg / May 2, 2009
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SAN FRANCISCO - The trustee liquidating Bernard L. Madoff Investment Securities LLC sued Stanley Chais and other defendants over claims they received more than $1 billion doing business as "insiders" with Madoff's firm.

Similar lawsuits will be filed in coming weeks and months, said the trustee, Irving Picard, in a statement distributed yesterday by PR Newswire.

Chais is a philanthropist and investment adviser based in Los Angeles.

"This is the first of several actions that will be brought against entities that either acted as insiders with Bernard Madoff and BLMIS or that benefited from Madoff's scheme to the severe detriment of other customers of BLMIS," David Sheehan, a lawyer for Picard, said in the statement, referring to Madoff's firm by its initials.

Madoff, 71, pleaded guilty in March to running the biggest Ponzi scheme ever. He faces a prison sentence of up to 150 years.