Bernie Madoff

Beverly Hills financial advisor Stanley Chais, accused of steering hundreds of millions in investor dollars to Bernard L. Madoff's Ponzi scheme, was sued this morning by California Atty. Gen. Jerry Brown. The lawsuit, filed in Los Angeles County Superior Court, seeks restitution for victims and at least $25 million in civil penalties. Chais operated three exclusive funds that offered returns of up to 25%. He told clients that he achieved the returns using a complex combination of derivatives, stock, currency and futures trading, Brown said.

She is described by people who hired her as modest, generous, pleasant and so ordinary they struggle to recall anything about her. Her lifestyle showed no sign of extravagance. Quite the opposite. The politicians and consultants who trusted Kinde Durkee with millions of dollars saw little to hint that she might become vilified as "the Bernie Madoff of campaign finance treasurers. " The 1950-vintage house she owns with her husband on a tidy street in Long Beach's Bixby Knolls is distinguished by its neglect.

Three days. That's how close Bernard Madoff's $65-billion Ponzi scheme came to collapsing back in November 2005. The high-profile Bayou hedge fund had failed, and droves of newly anxious investors were pulling money out of investment businesses such as Madoff's. He owed $105 million in redemption checks to investors, but the fraudulent investment business' JPMorgan bank account had just $13 million. As Diana Henriques documents in her new book, "The Wizard of Lies: Bernie Madoff and the Death of Trust," Madoff was able to cover the difference only by pulling money from his legitimate brokerage business and by appropriating client assets to get a $95-million loan.

Sen. Dianne Feinstein (D-Calif.) said her campaign is among those that may have been "wiped out" by a Burbank-based Democratic campaign treasurer who was arrested on federal fraud charges earlier this month. Kinde Durkee is accused of taking thousands of dollars from the campaigns of several elected officials, including Rep. Loretta Sanchez (D-Garden Grove), Rep. Susan A. Davis (D-San Diego) and Assemblyman Jose Solorio (D-Santa Ana). The Los Angeles County Democratic Party reported that more than $200,000 had been taken from its fund.

The many faces of Lily Tomlin are well known to television audiences, and with her current gig on the FX legal thriller "Damages," there's one more just as compelling. Tomlin, 70, plays Marilyn Tobin, the dispossessed wife of the Bernie Madoff figure, Louis Tobin, and a dark departure from the classic characters she introduced on "Laugh-In" 40 years ago. Ernestine and others are alive and kicking in Tomlin's concert tour and her Las Vegas show, "Not Playing With a Full Deck," which is returning to the MGM Grand from April 29 to May 5. She's also working on a "Desperate Housewives" spinoff, a mystery comedy featuring her character, Roberta Simmons, and Kathryn Joosten's Karen McCluskey character.

Tangled Webs How False Statements Are Undermining America: From Martha Stewart to Bernie Madoff James B. Stewart The Penguin Press: 474 pps., $29.95

Wall Street today may be a vast global community with multinational reach. But it's also a small, insulated world based on trust, where your word and a handshake are your bond. Or not. Just ask Steven Spielberg, or Jeffrey Katzenberg, or anyone else unfortunate enough to have invested money with accused swindler Bernard L. Madoff.

Re "Bernanke the enforcer," editorial, March 11 We all know what happens in times like these: There are loud protests of disgust and new regulations, and then when the economy improves, we go back to ignoring the problem -- greed. I have another solution. Let's take a Bear Stearns building on Wall Street and turn it into a white-collar prison. Put a big plasma screen TV beside the doorway with a scrolling list of the inmates, their photos and descriptions of their crimes. Start with Bernie Madoff.

Re: "Investors cry foul after real estate deals go bust," Feb. 18: As an independent futures trader, my daily due diligence is a routine part of my overall strategy. Sadly, what is missing from your article -- and from all the coverage regarding Bernie Madoff and all the mini-Madoffs like Mr. Harkey -- are any comments on the lack of due diligence on the part of the investors. How someone can give all or part of his savings over to a single investment or investor is beyond my comprehension.

Re: "Madoff victims push for tax relief," April 27: The investors who gave money to Bernie Madoff did so in spite of the fact that he promised returns that were literally "too good to be true." Sure enough, his Ponzi scheme collapsed and some investors lost millions. In your article, Gordon Bennett, who lost $1.5 million, says, "I was victimized once by Mr. Madoff. I don't want to be victimized a second time by the state of California." Mr. Bennett, you were a victim of your own greed, and I fail to see why the taxpayer should pick up the tab for your poor judgment.

Kings General Manager Dean Lombardi, contending the Edmonton Oilers had twice misrepresented the health of a traded player, said Friday the Kings will "look at our legal avenues" for a remedy. "The bottom line for me, I would have rather invested my money with Bernie Madoff than invest in Edmonton's word," Lombardi said. Lombardi agreed to take forward Gilbert Brule in exchange for Ryan Smyth but balked after the Kings determined Brule hadn't been procedurally cleared following a concussion.

Three days. That's how close Bernard Madoff's $65-billion Ponzi scheme came to collapsing back in November 2005. The high-profile Bayou hedge fund had failed, and droves of newly anxious investors were pulling money out of investment businesses such as Madoff's. He owed $105 million in redemption checks to investors, but the fraudulent investment business' JPMorgan bank account had just $13 million. As Diana Henriques documents in her new book, "The Wizard of Lies: Bernie Madoff and the Death of Trust," Madoff was able to cover the difference only by pulling money from his legitimate brokerage business and by appropriating client assets to get a $95-million loan.

New York Mets owner Fred Wilpon said his team is "bleeding cash" and could lose as much as $70 million this year. Wilpon told Sports Illustrated in its current issue that he has made a lot of poor judgments. He says trusting Bernard Madoff was his biggest regret. The Mets were caught up in Madoff's Ponzi scheme. Wilpon told the magazine that the Mets "became in jeopardy" after a court-appointed trustee wanted the team's owners to repay $1 billion to Madoff's victims.

Tangled Webs How False Statements Are Undermining America: From Martha Stewart to Bernie Madoff James B. Stewart The Penguin Press: 474 pps., $29.95

Not the retiring type When Johnny Damon became a free agent last winter, there were few suitors for his services. "The Yankees were trying to get me back," he said Saturday. "I heard the Angels were talking. I don't think I got an offer from them, but I knew they were interested. " But it was the Tampa Bay Rays who showed the most love, offering a one-year, $5.25-million deal and the prospect of ample playing time. So far that decision has proven to be one of the best acquisitions of the season, with Damon hitting .266 and leading the majors with six game-winning hits and leading all designated hitters with 20 runs batted in. Passing up two contenders for a team that looked to be rebuilding was a curious move for a 37-year-old in the twilight of his career.

The many faces of Lily Tomlin are well known to television audiences, and with her current gig on the FX legal thriller "Damages," there's one more just as compelling. Tomlin, 70, plays Marilyn Tobin, the dispossessed wife of the Bernie Madoff figure, Louis Tobin, and a dark departure from the classic characters she introduced on "Laugh-In" 40 years ago. Ernestine and others are alive and kicking in Tomlin's concert tour and her Las Vegas show, "Not Playing With a Full Deck," which is returning to the MGM Grand from April 29 to May 5. She's also working on a "Desperate Housewives" spinoff, a mystery comedy featuring her character, Roberta Simmons, and Kathryn Joosten's Karen McCluskey character.

I really enjoyed the interview with Securities and Exchange Commission Chairman Christopher Cox. ("SEC's Cox defends approach," Dec. 27.) His steady-as-she-goes attitude during the worst financial crisis in this country is illuminating. All banks being systematically crushed and destroyed by short sellers, Bernie Madoff with a $50-billion Ponzi scheme and Mr. Cox is proud of his steady-as-she-goes-do-nothing managing. He even criticizes Treasury Secretary Henry M. Paulson and Federal Reserve Chairman Ben S. Bernanke for taking action.

Hollywood mogul Jeffrey Katzenberg says the losses on his personal investments with Bernard L. Madoff have done "extraordinary damage" to his philanthropic efforts. In an interview with CNBC on Thursday, the DreamWorks Animation SKG chief said it was a "disgrace" that Madoff remained free pending the next phase of his case.

At 52, Ross Mandell is built like an aging wrestler, with veins the size of phone cords webbed across Popeye-like forearms. But when he recalls what happened last summer, the macho exterior melts away. "I cried like a baby. I curled up in a fetal position in my bed and I wanted my mommy," the former chief of the brokerage firm Sky Capital said. "It was brutal." Mandell surrendered in July to authorities who accused him of masterminding a transatlantic stock fraud that used "high-pressure sales tactics" to bilk tens of millions of dollars from investors, with Mandell allegedly blowing the proceeds on luxury travel and adult entertainment.

Beverly Hills financial advisor Stanley Chais, accused of steering hundreds of millions in investor dollars to Bernard L. Madoff's Ponzi scheme, was sued this morning by California Atty. Gen. Jerry Brown. The lawsuit, filed in Los Angeles County Superior Court, seeks restitution for victims and at least $25 million in civil penalties. Chais operated three exclusive funds that offered returns of up to 25%. He told clients that he achieved the returns using a complex combination of derivatives, stock, currency and futures trading, Brown said.