Legal News

Chais not off the hook

By Richard Binder

Eric Roth may have given up the Chais, but not the U.S. government.

Federal prosecutors are conducting a criminal investigation of Beverly Hills money manager Stanley Chais. 

U.S. prosecutors in New York asked a judge to allow them to intervene in the Securities and Exchange Commission civil case against Chais in order to postpone it for six months "pending the resolution of an ongoing, parallel criminal investigation."

The government's motion marked the first public confirmation that Chais, 83, could face criminal charges. In addition to the SEC's lawsuit, California Atty. Gen. Jerry Brown filed a lawsuit against Chais that sought to recover investor money.

Assistant U.S. Atty. William J. Stellmach said charges that Chais and others could face include conspiracy, mail fraud, wire fraud, securities fraud and money laundering. A decision on whether to pursue criminal charges against Chais should be made by June.

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Full post as published by Legal Pad | LA on December 14, 2009 (boomark / email).