Legal News

Brown files suit against Chais

By Richard Binder

California Attorney General Jerry Brown filed a lawsuit in Los Angeles County Superior Court against Beverly Hills financial advisor Stanley Chais, who allegedly steered hundreds of millions in investor dollars to Bernard L. Madoff's Ponzi scheme.

Brown contends that from the early 1970s until last December, Chais directed hundreds of millions of dollars to Madoff through three funds - the Brighton, Lambeth and Popham companies - collectively known as the Chais Funds. The much-maligned "Madoff middleman" attracted hundreds of investors to these funds by producing annual returns of 20 to 25 percent, according to  Brown.

The lawsuit seeks seeks at least $25 million in civil penalties, restitution for victims, disgorgement of profits and compensation, and an injunction prohibiting future violations of California law.

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Full post as published by Legal Pad | LA on September 23, 2009 (boomark / email).