Money Manager Stanley Chais, Linked to Bernard Madoff, Dies at 84

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On Sunday, Los Angeles-based money manager Stanley Chais died. He was 84.

At the time of his death, Chais was under investigation for his involvement with Bernard Madoff. The manager of three investment funds that channeled money to the notorious Ponzi schemer, Chais told investors -- including director Stephen Spielberg -- that the impressive returns of up to 25% were the result of careful hedging and sage stock picks. Chais also invested his own funds with Madoff, and received even more astounding dividends: According to a lawsuit filed by Madoff bankruptcy trustee Irving Picard, Chais' personal return on investment averaged 40% and sometimes soared to 300%.

Facing civil fraud charges from the Securities and Exchange Commission, a lawsuit from California Attorney General Jerry Brown, and the Picard lawsuit, Chais claimed that he was unaware that Madoff's business was a house of cards. However, Picard's lawsuit alleged that Chais' family had withdrawn $1 billion from their Madoff account between 1995 and 2008, making it hard for the money man to paint himself as a victim. In response to his SEC charges, Chais asserted that they should be dropped, as the regulatory agency had given credence to Madoff through its own inefficiency and failure to capture him.

Chais is the second prominent Madoff associate to die since the notorious fraudster was sentenced to 150 years in prison. The first, Jeffry Picower, drowned in his Palm Beach, Florida home on Oct. 26, 2009, under suspicious circumstances. A Madoff investor who made an estimated $7.2 billion off his investments in the Ponzi scheme, Pickower was on the 2009 Forbes 400 list. At the same time, he was also under investigation by federal prosecutors in New York. Aged 67, Pickower suffered from Parkinson's disease and assorted heart ailments, and was found by his wife at the bottom of his pool.

The circumstances of Chais' death were far less suspicious. Suffering from a rare blood disease, he moved to New York from Los Angeles to receive medical treatment. According to his wife, he was receiving regular dialysis treatments at the time of his death.

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CORRECTION: The individual depicted in the photograph erroneously accompanying this article earlier was not Stanley Chais.

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dhggifg

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September 28 2010 at 9:48 AM Report abuse rate up rate down Reply
dhggifg

ahttp://www.wowougg.comin Daily Dose of Style In order to thank the support of new and old customers, we have launched promotional activities: Buy over 100 items to send beautiful plutonium Buy at least 200 to send beautiful T shirt Buy at least 300 to send exquisite handbags And so on, buy more more sent. http://www.wowougg.com http://www.wowougg.com #%#$^$#&#$&*#$#$&#$h

September 28 2010 at 9:48 AM Report abuse rate up rate down Reply
cyberbeano

Net worth, zero.

September 27 2010 at 8:51 PM Report abuse rate up rate down Reply
rumpoint4us

GOOD! "R.I.H." (rest in hell)

September 27 2010 at 6:57 PM Report abuse rate up rate down Reply
mobnana

all the money in the world could not buy his life! We are ALL going to dye! I don,t care if your very very rich or very very poor, your a movie star or the president of the USA ----- you are guarenteed to dye! So, wile you are alive do something good with your time and money --- VOTE in November

September 27 2010 at 6:49 PM Report abuse rate up rate down Reply
standfordgrays

Ken Lay died of heart failure too... makes you wonder

September 27 2010 at 6:03 PM Report abuse rate up rate down Reply
Tom

I am tired of criminals using death as an excuse not to go on trial. These people should be hauled in to court, propped up in a chair, and let justice be served. One of the reasons we have climbing suicide rates is the failure of the justice system to prosecute people who kill themselves. We are literally letting these people get away with murder.

September 27 2010 at 3:17 PM Report abuse +3 rate up rate down Reply
equity6

There is never a good time to die and I do not want to make light of his death. However, with the estate tax at Zero for this year, and with the lawsuits and investigations going on, maybe....just maybe.......

September 27 2010 at 2:50 PM Report abuse +1 rate up rate down Reply
Davie2743

What happened to all his ill gotten gains ? I read one of Madoff's children just recently bought a multimillion dollar condominium in an exclusive New York City building.

September 27 2010 at 2:48 PM Report abuse +2 rate up rate down Reply
David

KARMA!!

September 27 2010 at 2:38 PM Report abuse +1 rate up rate down Reply