State reaches $15-million settlement with estate of Beverly Hills money manager tied to Madoff
Californians who trusted their money to Beverly Hills investment manager Stanley Chais, only to have him funnel their money to Ponzi schemer Bernie Madoff, will get $15 million in restitution through a deal announced Friday.
Chais, who died at 84 in 2010, was accused of steering hundreds of millions of dollars from his investors without their knowledge to Madoff. Investors lost most of their money when Madoffs seemingly successful investment business turned out to be a scam.
The California Department of Justice sued Chais in 2009, with then-Atty. Gen. Jerry Brown calling the money manager nothing more than a Madoff middleman.
The department, now led by state Atty. Gen. Kamala Harris, announced Friday that it had reached a settlement with Chais estate, calling for it to forfeit assets to pay restitution.
Read more: http://www.latimes.com/business/la-fi-chais-madoff-settlement-20161028-story.html