SAN FRANCISCO (Legal
Newsline) – California Attorney General Kamala D. Harris announced Oct. 28
that Californians who invested money with Beverly Hills-based investor Stanley
Chais will receive part of a $15 million restitution settlement.
allegedly funneled investor money into Bernard Madoff’s notorious Ponzi scheme.
According to Harris’ office,
Chais violated California’s consumer protection laws and corporate securities
laws by deceiving clients, many of whom were elderly. Chais purportedly coerced
unaware consumers into paying him substantial fees, claiming he was actively
managing their money when he was actually just turning money over to Madoff.
Many of these consumers allegedly lost their life savings when Madoff’s
fraudulent scheme was uncovered in 2008.
“For over 30 years, Stanley
Chais unscrupulously defrauded Californians, many of them elderly, by taking
their life savings, charging steep fees, and funneling their money to Bernie
Madoff’s elaborate Ponzi scheme,” Harris said.
“This settlement will help
recover the losses suffered by victims who were cheated by Chais, many of whom
Chais passed away in 2010, and
all of his remaining assets will be forfeited as part of a separate agreement.