September 16, 2010 |
Beverly Hills financial advisor Stanley Chais made a fortune serving as Bernard L. Madoff's connection to Southern California's rich and powerful. He hobnobbed with Hollywood elite, won praise as a generous philanthropist and kept homes on both coasts. These days, though, the 84-year-old Chais spends the bulk of his time shuttling from one medical appointment to the next, weighed down by an ongoing federal criminal investigation and myriad lawsuits that could ruin him financially.
September 12, 2010 |
If you own U.S. stocks, you should know that the Securities Investor Protection Corp. is considering revamping its rules in the wake of the two biggest quakes ever to hit the brokerage industry — the massive Lehman Bros. collapse and Bernard L. Madoff's record-setting Ponzi scheme. SIPC is the brokerage-industry equivalent of the Federal Deposit Insurance Corp., with some major differences. SIPC will cover a stock investor for up to $500,000 in securities and cash (there's a $100,000 cap on the cash part)
December 12, 2009 |
Federal prosecutors disclosed Friday that they were conducting a criminal investigation of Beverly Hills money manager Stanley Chais, who is accused of serving as the Southern California link to a Ponzi scheme operated by disgraced financier Bernard L. Madoff. Assistant U.S. Atty. William J. Stellmach revealed the criminal investigation in a motion that sought to postpone for six months a civil lawsuit filed by the Securities and Exchange Commission against Chais in June. Stellmach said that proceedings in the SEC lawsuit, if not suspended, could interfere with an "ongoing, parallel criminal investigation" of Chais.
November 14, 2009 |
Two computer programmers who worked in the New York offices where Bernard L. Madoff operated a multibillion-dollar Ponzi scheme were arrested by federal agents on suspicion of helping to hide the fraud for more than 15 years. Jerome O'Hara and George Perez designed computer codes and random algorithms that enabled Madoff to defraud investors, the U.S. attorney for Manhattan said. The charges O'Hara, 46, and Perez, 43, face include conspiracy and falsifying documents. Prosecutors said they found handwritten notes in O'Hara's desk from 2006 saying, "I won't lie any longer.
November 4, 2009 |
Bernard L. Madoff's longtime auditor pleaded guilty to securities fraud charges, saying he failed to verify the disgraced money manager's financial records but did not know Madoff was running history's biggest Ponzi scheme. David Friehling, 49, entered the plea in U.S. District Court in Manhattan, apologizing to the thousands of victims who lost billions of dollars. The plea was part of a cooperation deal with prosecutors.
October 21, 2009 |
Bernard Madoff's investment firm had a "diversion-filled office environment" featuring a culture of "sexual deviance" and drug use, says a lawsuit filed Tuesday against companies that dealt with the Ponzi-scheme mastermind. Starting in 1975, Bernard L. Madoff Investment Securities had an employee supply the office with drugs, according to the lawsuit. The complaint says the employee was fired in 2003 when Madoff, 71, who is now serving a 150-year prison sentence, worried that the drugs could draw the attention of prosecutors who might discover his financial fraud.