Law­suits pend­ing

Los Angeles Times - - Daily Market Roundup - —Stu­art Pfeifer

At the time of his death, for­mer Bev­erly Hills money man­ager Stan­ley Chais was fac­ing sev­eral civil law­suits re­lated to his fi­nan­cial in­vest­ments with Bernard L. Mad­off. He also was un­der crim­i­nal in­ves­ti­ga­tion by the U.S. at­tor­ney’s of­fice in New York. No crim­i­nal charges were filed. The civil law­suits pend­ing in­clude:

Pi­card law­suit: Irv­ing H. Pi­card, trustee over­see­ing the liq­ui­da­tion of Mad­off’s as­sets, sued Chais, his wife, Pamela, and sev­eral fam­ily mem­bers in Man­hat­tan Bank­ruptcy Court in May 2009, seek­ing to re­cover hun­dreds of mil­lions of dol­lars Pi­card said were ill-got­ten prof­its from Mad­off’s Ponzi scheme.

SEC law­suit: The Se­cu­ri­ties and Ex­change Com­mis­sion sued Chais in fed­eral court in Man­hat­tan in June 2009, al­leg­ing among other things that Chais gen­er­ated about $270 mil­lion in fees by in­vest­ing clients’ as­sets with Mad­off.

Cal­i­for­nia law­suit: Cal­i­for­nia Atty. Gen. Jerry Brown sued Chais in Los An­ge­les County Su­pe­rior Court in Septem­ber 2009, seek­ing a $25-mil­lion fine and hun­dreds of mil­lions of dol­lars in resti­tu­tion for in­vestors.

De­riv­a­tive law­suits: In­vestors in the three funds that Chais op­er­ated have sued in Los An­ge­les County Su­pe­rior Court, seek­ing to re­cover hun­dreds of mil­lions of dol­lars they al­lege were lost when Chais se­cretly in­vested their money in Mad­off’s Ponzi scheme. An at­tor­ney for the in­vestors said Tues­day he hoped the cases would go to trial in 2011.

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