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Stanley Chais

Stanley Chais (March 27, 1926 – September 26, 2010) was an American investment advisor and philanthropist known for managing funds for wealthy clients, including Hollywood elites, and directing substantial investments to Bernard Madoff's firm through his own feeder funds.^[1]^[2] Over decades, Chais collected approximately $270 million in fees from these arrangements while concealing his reliance on Madoff from investors, who believed he was handling the portfolios personally.^[3]^[4] His reputation, built on consistent high returns averaging 40% annually, unraveled with Madoff's 2008 admission of operating a Ponzi scheme, leading to regulatory accusations that Chais ignored evident red flags in the unsustainable performance.^[1]^[5] Prior to the scandal, Chais was esteemed for his philanthropy, particularly toward Jewish causes and institutions in Israel, donating millions to support higher education and Zionist initiatives.^[6] He maintained homes in Beverly Hills and New York, socializing with prominent figures, and positioned himself as a successful self-made financier.^[7] Chais died of natural causes in Manhattan, attributed to a rare blood disease, amid ongoing legal battles; his family later settled claims with Madoff's bankruptcy trustee for $277 million to recover fictitious profits withdrawn from the scheme.^[1]^[8] Despite the allegations of recklessness and misrepresentation leveled by the SEC and California Attorney General, Chais consistently denied knowledge of Madoff's fraud, asserting he too was a victim of the deception.^[3]^[2]

Early Life and Education

Upbringing and Family Background

Stanley Chais was born in the Bronx, New York, on March 27, 1926.^[2]^[1] He grew up in a family engaged in the garment industry, which shaped his initial professional path before transitioning to finance.^[2] Chais's family background reflected modest immigrant or working-class Jewish roots common in early 20th-century New York, though specific details about his parents remain limited in public records.^[9] He later married Pamela Chais, a playwright and screenwriter, with whom he established the Chais Family Foundation focused on Jewish philanthropy, but this occurred well after his formative years.^[10]

Academic Achievements and Initial Career Steps

Chais graduated from Syracuse University in 1947.^[2] After completing his education, Chais joined the family-owned garment business, where he worked in the industry and rose to serve as president of Kay Windsor, Inc.^[11] The business operated for several decades before being liquidated around 1970.^[2]

Professional Career in Finance

Transition from Garment Business to Investments

Stanley Chais initially managed a family-owned garment business specializing in children's clothing, which operated until its liquidation approximately four decades prior to 2010, around 1970.^[2] According to statements from his lawyer, Eugene Licker, the proceeds from this business provided the capital for Chais's entry into the investment sector shortly thereafter.^[2] Following the garment business closure, Chais established himself as an investment advisor, leveraging the liquidated assets to initiate placements with early partners, including Bernard Madoff beginning in the early 1970s.^[2] This shift marked the foundation of his finance career, which grew over subsequent decades into managing funds for high-net-worth clients, though detailed records of initial independent advisory activities remain limited in public sources.^[12] The transition reflected a pivot from manufacturing to financial services, driven by the availability of personal capital rather than documented external market catalysts.^[2]

Establishment of Investment Advisory Practice

Following the liquidation of his family's garment manufacturing business around 1970, Stanley Chais transitioned into investment management, establishing an unregistered advisory practice in Beverly Hills, California.^[2] He began providing investment advice to select clients, initially leveraging proceeds from the garment business to pursue opportunities that built his reputation for generating consistent high returns.^[13] Chais formalized his operations by serving as general partner for three limited partnerships—The Brighton Company, the Lambeth Company, and the Popham Company—which he used to pool and manage investor funds.^[14] Starting in or around 1970, these entities received his advisory services, with Chais collecting management fees equivalent to 25% of their assets under management.^[15] Over the subsequent four decades, he expanded his clientele among affluent individuals, particularly in Jewish communities in the San Fernando Valley and Beverly Hills, positioning himself as a discreet, high-performing money manager without formal registration as an investment adviser.^[16]

Relationship with Bernard Madoff

Early Investments and Friendship

Stanley Chais and Bernard Madoff maintained a close personal and business friendship spanning more than 50 years, rooted in shared backgrounds within affluent Jewish financial circles.^[17] Their relationship, described in legal proceedings as unusually intimate and enduring over three decades by the early 2000s, positioned Chais as one of Madoff's most trusted associates, evidenced by Chais being programmed as the top entry on Madoff's office speed dial.^[18] ^[15] This bond facilitated Chais's early entry into Madoff's investment operations, with no public records detailing the precise circumstances of their initial acquaintance, though it predated Chais's formal shift to money management following the liquidation of his family garment business around 1970.^[2] Chais began channeling investments to Madoff in the early 1970s, establishing himself as one of Madoff's earliest and largest feeder investors through three private funds under his management, each allocating all or nearly all assets to Madoff's firm.^[13] These funds collected capital from wealthy clients, whom Chais often assured of diversified, proprietary strategies, while directing the proceeds exclusively to Madoff's purported equity trading operations.^[10] By the late 1970s and into subsequent decades, this arrangement yielded consistent reported returns for Chais's accounts, reinforcing their partnership amid Madoff's growing reputation for steady performance, though later scrutiny revealed these gains as implausibly uniform and indicative of fabricated results.^[17] Chais's role as an early conduit distinguished him from later participants, with his funds amassing significant principal that ballooned through compounded "profits" over time.^[19]

Operation of Feeder Funds

Stanley Chais managed multiple feeder funds that funneled client investments exclusively into Bernard L. Madoff Investment Securities LLC, including the Chais Family Foundation, Chais Investments Ltd., and related entities such as Chais Management Inc. and the Stanley Chais Defined Benefit Pension Plan.^[20] These funds collected capital primarily from friends, family members, charitable organizations, and other individuals, many of whom were elderly Californians entrusting life savings for purportedly diversified, low-risk strategies promising steady returns of around 10-15% annually.^[3] ^[21] In operation, Chais provided minimal oversight beyond transferring the entirety of each fund's assets to Madoff, who executed trades and reported fictitious gains to sustain the illusion of active management.^[21] Despite this pass-through structure, Chais represented himself as a sophisticated advisor conducting independent analysis and risk management, concealing the funds' complete reliance on Madoff's operations.^[22] He imposed fees including a management charge well above the standard 1% of assets under management, plus performance-based incentives tied to the reported—yet fabricated—profits, amassing nearly $270 million in total fees over more than three decades.^[23] ^[24] The feeder funds scaled significantly due to Chais's personal network and reputation, channeling billions in principal investments to Madoff and positioning Chais among the largest indirect conduits to the scheme.^[25] Investors received monthly statements mirroring Madoff's generated performance data, with Chais occasionally requesting Madoff to fabricate losses to offset gains in clients' other holdings for tax purposes.^[26] This mechanism operated undetected until Madoff's confession on December 10, 2008, after which the funds' illusory balances evaporated, leaving participants with principal losses exceeding $1 billion in withdrawn "profits" subject to clawback claims.^[8]

Role in the Madoff Ponzi Scheme

Profits Withdrawn and Alleged Returns

Stanley Chais and entities associated with his family withdrew more than $1 billion from Bernard Madoff's firm between 1995 and 2008, encompassing both principal investments and purported profits.^[27] The Irving Picard bankruptcy trustee, tasked with recovering Madoff scheme assets, sought to claw back $1.32 billion in fictitious profits from Chais' estate and family members, arguing these withdrawals represented gains from the Ponzi operation rather than legitimate investment returns.^[8] Chais' net withdrawals exceeded his initial investments by approximately $500 million, according to the U.S. Securities and Exchange Commission (SEC), which alleged that Chais profited substantially from directing client funds into Madoff's accounts while ignoring indicators of fraud, such as implausibly consistent performance.^[13] Other estimates placed the excess at $546 million, reflecting cash extracted beyond the amounts originally committed.^[4] These outflows funded Chais' lifestyle and philanthropy, including substantial donations via the Chais Family Foundation, but were later contested as ill-gotten under clawback provisions of bankruptcy law. The alleged returns underpinning these withdrawals stemmed from Madoff's fabricated statements, which Chais requested be tailored to eliminate losses and deliver steady gains—reportedly up to 25% annually in some feeder arrangements—despite market volatility.^[28] Chais earned roughly $270 million in management and performance fees from clients funneled to Madoff, based on these illusory results, which defied empirical benchmarks for legitimate equity strategies.^[4] Post-scheme revelations confirmed no actual trading occurred, rendering the returns causally impossible and exposing Chais' reliance on Madoff's custom fabrications as a key enabler of the withdrawals.^[21] In 2016, Chais' estate settled with the Picard trustee for $277 million, representing a partial return of contested profits without admission of wrongdoing, amid ongoing litigation over the funds' legitimacy.^[8] This agreement addressed claims that Chais' operations amplified the scheme's reach, allowing disproportionate extraction relative to other victims who received no such net gains.^[17]

Revelation of the Scheme in 2008

On December 10, 2008, Bernard Madoff confessed to his sons, Mark and Andrew, that the asset management arm of Bernard L. Madoff Investment Securities LLC (BLMIS) was "one big lie," admitting it had operated as a multibillion-dollar Ponzi scheme for years by using new investor funds to pay returns to earlier ones rather than generating legitimate trading profits.^[29] The following day, December 11, 2008, federal authorities arrested Madoff on charges of securities fraud, money laundering, and perjury, triggering the collapse of his firm and widespread revelations about its feeder networks.^[30] This event exposed that Chais, through his investment advisory entities, had directed approximately $900 million in principal from over 100 clients to Madoff since the 1970s, while redeeming a net $1.1 billion in purported profits for himself, his family, and clients by December 2008—figures that audits later showed far exceeded any plausible investment returns.^[10] Chais had concealed Madoff's identity from most clients, describing investments vaguely as managed by an unnamed "Wall Street wizard" or third-party trader to maintain exclusivity and avoid scrutiny.^[10] On or about December 12, 2008, Chais notified partners in his CMG fund that their assets—held undisclosed with BLMIS—were at risk due to Madoff's arrest, prompting immediate shock among investors who had been unaware of the underlying manager.^[10] Initial probes revealed Chais' accounts received unusually consistent returns, including fabricated losses to offset taxes and backdated trades upon request, patterns inconsistent with market volatility but aligned with Ponzi mechanics.^[22] The swift public disclosure of Chais' role stemmed from BLMIS account records seized post-arrest, highlighting his as one of the largest feeder channels, with family-linked entities alone netting over $550 million in withdrawals from 2003 to 2008.^[17] Chais maintained he was deceived like other victims, asserting ignorance of the fraud despite decades-long personal friendship with Madoff and direct communications bypassing standard verification.^[10] By late December 2008, media reports detailed how Chais' opaque structure had amplified client exposure, with some, like Los Angeles philanthropists, facing total losses on commitments exceeding $100 million routed through him.^[10] This revelation initiated clawback efforts, as fictitious profits Chais redeemed represented transfers from later victims, though immediate recovery was limited amid the firm's liquidation.^[17]

Legal Proceedings and Accusations

SEC Charges and Misrepresentation Claims

In June 2009, the U.S. Securities and Exchange Commission (SEC) filed a civil lawsuit against Stanley Chais, alleging securities fraud in connection with his management of investor funds that were ultimately invested with Bernard Madoff's firm.^[21] The complaint charged Chais with violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder, claiming he misrepresented his investment activities to attract and retain investors.^[22] Specifically, Chais allegedly told investors that he personally managed and traded their assets using proprietary strategies, when in reality he transferred nearly all funds—totaling over $1 billion from three entities he controlled (Bright Point Partners LLC, The Brightstar Funds LLC, and Lion Global Advisors LLC)—to Madoff Investment Securities LLC without disclosing this dependency.^[21]^[22] The SEC further accused Chais of providing investors with falsified account statements and performance reports that depicted consistent, fabricated returns and trades attributable to his supposed expertise, concealing the fact that Madoff executed all substantive investment decisions.^[22] Over nearly two decades, Chais collected approximately $250 million in management and performance fees based on these purported gains, which the SEC described as derived from Madoff's Ponzi scheme rather than legitimate trading.^[21] Chais had withdrawn over $500 million in principal and profits from his Madoff accounts between 2000 and 2008, allegedly ignoring discrepancies such as implausibly steady returns that should have raised suspicions given his experience as a registered investment adviser since 1965.^[22] In September 2009, California Attorney General Jerry Brown filed a separate lawsuit against Chais, echoing SEC claims of misrepresentation by alleging he portrayed himself as an "investment wizard" who actively managed funds while secretly funneling them to Madoff, misleading at least 150 investors and causing losses exceeding $1 billion.^[3] The state suit sought at least $25 million in civil penalties, restitution, disgorgement of ill-gotten gains, and an injunction barring future violations, emphasizing Chais's failure to disclose Madoff's role despite collecting fees for non-existent advisory services.^[3] Chais's representatives denied the allegations, asserting he was also a victim of Madoff's fraud and had not knowingly misled investors, though the cases remained unresolved at his death in September 2010.^[31]

Litigation with Trustee Irving Picard

Irving H. Picard, the court-appointed trustee for Bernard L. Madoff Investment Securities LLC, initiated litigation against Stanley Chais on May 1, 2009, seeking to recover approximately $1 billion in alleged fictitious profits withdrawn from Madoff's fraudulent accounts.^[27] The complaint accused Chais of receiving preferential treatment, citing 35 instances between 1996 and 2007 where Chais family accounts reported annual returns exceeding 100 percent, far surpassing typical Madoff client performance.^[27] Picard contended that Chais, as a long-time investor and advisor, knew or should have known of the Ponzi scheme's irregularities, including impossibly consistent returns and withdrawals totaling over $1.32 billion in purported gains.^[8] Following Chais's death on September 26, 2010, the suit proceeded against his estate, widow Pamela Chais, and other family members, funds, trusts, and entities controlled by them.^[32] U.S. Bankruptcy Judge Burton R. Lifland denied motions to dismiss the claims in 2014, allowing the case to advance on grounds of fraudulent transfers under bankruptcy law, rejecting arguments that the Chais defendants were good-faith investors unaware of the fraud.^[33] The litigation expanded to include counterclaims and involvement from the California Attorney General, representing charitable beneficiaries of Chais family foundations that had received transferred funds.^[32] The parties reached a global settlement on October 27, 2016, under which the Chais estate and related defendants agreed to pay $277.45 million to the Madoff customer fund, resolving all claims without admission of liability.^[8]^[34] The agreement, approved by the U.S. Bankruptcy Court for the Southern District of New York on November 19, 2016, covered substantially all of Pamela Chais's assets and provided for distributions benefiting Madoff victims, California charities, and private claimants.^[32]^[34] This recovery contributed to the trustee's efforts, which by late 2016 had amassed over $11.4 billion for defrauded customers.^[35]

Posthumous Settlement in 2016

In October 2016, Irving H. Picard, the court-appointed trustee for the liquidation of Bernard L. Madoff Investment Securities LLC, reached a $277 million settlement with the estate of Stanley Chais, his widow Miriam Chais, and other family members to resolve clawback claims related to fictitious profits withdrawn from Madoff's Ponzi scheme.^[8]^[32] The agreement encompassed substantially all assets of Chais's estate and his widow's holdings, providing a net recovery benefit exceeding $277 million for Madoff victims after accounting for prior distributions.^[8]^[32] The settlement followed Picard's 2010 lawsuit accusing the Chais parties of receiving over $1 billion in illusory gains from feeder funds that funneled client money to Madoff, including approximately $35 million withdrawn by Chais personally in the months before the scheme's December 2008 collapse.^[36]^[37] It did not include an admission of wrongdoing or knowledge of the fraud by the defendants, who had consistently denied awareness of Madoff's misconduct, but aimed to avoid prolonged litigation over the clawback of transfers deemed avoidable preferences or fraudulent conveyances under bankruptcy law.^[8]^[37] Concurrently, the California Attorney General secured a separate $15 million settlement from the same Chais parties, directed toward compensating California-based Madoff victims, as part of coordinated resolutions approved by the U.S. Bankruptcy Court for the Southern District of New York.^[35]^[38] This brought total recoveries linked to Chais's involvement to over $292 million across the agreements, contributing to the broader effort to distribute assets to defrauded investors, with Picard's office having recovered more than $11.4 billion by that point in the Madoff liquidation.^[35]^[32]

Philanthropic Contributions

Support for Jewish and Educational Causes

Stanley Chais, through the Chais Family Foundation established in 1985, directed substantial philanthropy toward Jewish cultural preservation, community development, and educational initiatives, particularly in Israel, the United States, and the former Soviet Union.^[9] The foundation annually distributed approximately $12.5 million, with a primary emphasis on enhancing Jewish education and supporting organizations that advanced Jewish history and heritage.^[39] These efforts included funding for Jewish studies programs in the former Soviet Union and initiatives for Jewish community building in Germany.^[40] Chais's contributions extended to prominent Israeli institutions, reflecting his Zionist commitments, such as endowments to the Hebrew University of Jerusalem and the Weizmann Institute of Science for scientific and academic advancement.^[41] He also backed programs at the Technion-Israel Institute of Technology aimed at nurturing young talent in science and engineering.^[42] In higher education, Chais provided $1 million to the Open University of Israel to establish the Chais Research Center for the Integration of Technology in Education, promoting innovative teaching methods.^[43] At Reichman University (formerly IDC Herzliya), his gifts supported the Chais Ethiopian Fellows program, aiding immigrant integration through academic opportunities.^[6] Domestically, Chais funded educational programs for children with learning disabilities and contributed to dozens of Jewish organizations across the U.S., prioritizing empirical improvements in learning outcomes over broader social initiatives.^[1] His philanthropy, sustained for nearly 25 years, emphasized self-reliant educational empowerment and Jewish continuity, drawing from institutions' reported impacts rather than unverified advocacy claims.^[44]

Chais Family Foundation and Its Operations

The Chais Family Foundation, established in 1985 by Stanley Chais and his wife Pamela, operated as a private charitable entity based in Encino, California, focusing primarily on grants to Jewish cultural preservation, educational initiatives, and community support programs. Its philanthropy emphasized organizations advancing Jewish history and heritage, with significant allocations to causes in Israel, the United States, Eastern Europe, and the former Soviet Union, including efforts to bolster education and aid Jewish communities in transitional regions. Annual giving reached approximately $12.5 million, directed toward initiatives such as improving educational access in Israel and funding programs for children with learning disabilities.^[44]^[39]^[23]^[1] Key operational activities included sponsoring cultural events like Limmud festivals in Moscow, the Baltic states, and Southern California to promote Jewish learning and engagement, as well as targeted support for academic institutions in Israel, such as the Chais Ethiopian Fellows program at Reichman University and research centers at the Open University of Israel. The foundation also provided substantial funding for start-up companies involving immigrant scientists and broader educational enhancements, reflecting Chais's priorities in fostering Jewish continuity and innovation. In recognition of these efforts, the foundation received honors in Israel for its multimillion-dollar annual contributions to educational and communal projects.^[45]^[6]^[46]^[16] By 2007, the foundation reported assets exceeding $178 million, enabling contributions of nearly $8.2 million that year alone, though its operations relied heavily on investment returns channeled through family-managed funds. Following the exposure of irregularities in those investments in December 2008, the foundation announced the cessation of activities, having been fully invested in affected accounts, which halted its grantmaking and led to its effective dissolution.^[47]

Controversies and Criticisms

Debates on Knowledge of Fraudulent Activity

The primary debate surrounding Stanley Chais's knowledge of Bernard Madoff's fraudulent activity centers on circumstantial indicators of awareness versus assertions of victimhood. Irving H. Picard, the Madoff trustee, alleged in a May 1, 2009, lawsuit that Chais "knew or should have known" of the Ponzi scheme due to extraordinarily high and consistent returns on family accounts, averaging 40% annually from 1996 to 2007, with over 100% returns occurring 35 times and exceeding 50% on 125 occasions, far surpassing the 20-24% averages for Chais's client funds.^[27] These returns lacked market volatility, which Picard cited as inconsistent with legitimate split-strike conversion strategies purportedly used by Madoff.^[27] Additionally, Picard claimed Chais benefited from fabricated tax losses via backdated transactions and received preferential treatment, including withdrawals exceeding $1 billion since 1995, as compensation for directing client funds into the scheme.^[27] The U.S. Securities and Exchange Commission (SEC) reinforced these suspicions in a June 22, 2009, civil complaint, accusing Chais of ignoring multiple red flags, such as Madoff's reporting of zero losses across thousands of trades from 1999 to 2008 despite Chais's explicit instruction to avoid any losses in his fund's positions.^[22] The SEC further alleged that Chais, as a registered investment adviser managing three feeder funds (collectively holding over $900 million in reported Madoff assets by November 2008), withdrew more than $500 million in excess of principal invested between 1995 and 2008 while charging investors approximately $270 million in performance fees based on these illusory gains.^[22]^[17] Critics, including Picard, pointed to Chais's 50-year personal friendship with Madoff and his role in steering client money—without disclosing full delegation of trading to Madoff—as evidence of inadequate due diligence by a sophisticated adviser, potentially amounting to willful blindness if not active complicity.^[17] Counterarguments from Chais's representatives emphasized his status as a defrauded victim, denying any prior knowledge of the fraud and attributing the allegations to a "distorted and false picture."^[17] Chais's legal team maintained that he lost his reported fortune in the scheme's collapse, with most withdrawn funds redistributed to clients rather than retained personally, and portrayed the high returns as Madoff's deceptive hallmark that ensnared even close associates.^[17] No criminal charges were ever filed against Chais for participation in the fraud, distinguishing his case from Madoff's accomplices, and his estate reiterated in subsequent settlements (including a 2016 agreement with California authorities) that he lacked awareness of the Ponzi operation.^[17]^[38] Proponents of Chais's innocence highlighted the absence of direct evidence, such as communications admitting fraud, amid widespread failures by regulators and other investors to detect Madoff's irregularities despite similar red flags.^[17] These debates persisted through civil litigation, where courts rejected motions to dismiss Picard's claims against Chais's estate, finding sufficient pleading of non-innocence based on the preferential returns and withdrawals, though ultimate resolutions via settlements left the question of actual knowledge unresolved.^[48] The lack of forensic proof tying Chais to operational details of the fraud—coupled with his death on September 27, 2010—prevented definitive adjudication, fueling ongoing scrutiny of whether personal ties and outsized gains implied culpability or merely reflected Madoff's targeted deception of trusted insiders.^[17]^[2]

Impact on Investors and Counterarguments

Chais's investors, primarily wealthy individuals and institutions who entrusted him with advisory services, faced substantial financial losses when Bernard Madoff's Ponzi scheme collapsed in December 2008, as Chais had allocated nearly all of approximately $900 million in client assets exclusively to Madoff without disclosure or investor consent.^[2] These clients, including elite Hollywood figures such as an Oscar-winning director, believed Chais was conducting independent investment management with diversified strategies, but instead received fabricated returns mirroring Madoff's illusory performance, leading to principal evaporation and inclusion in the broader pool of Madoff victims seeking recovery.^[8] The nondisclosure exacerbated losses, as investors lacked opportunity for earlier withdrawal or diversification, with many discovering the Madoff dependency only post-collapse.^[17] Litigation further compounded the impact, as Irving Picard, the Madoff trustee, pursued clawbacks from Chais's estate and family for net withdrawals exceeding deposits by roughly $200 million to $500 million, funds derived from fictitious profits that could have bolstered victim recoveries.^[17]^[49] This process delayed distributions to Chais's clients, who, as indirect victims, competed in the same recovery framework, ultimately benefiting from the 2016 $277 million settlement covering Chais's estate, widow's assets, and family entities—representing about 96% of clawed claims but admitting no liability.^[8]^[50] Counterarguments to accusations of Chais's complicity emphasize his status as an early Madoff investor potentially deceived alongside thousands of others, with no direct evidence of awareness of the Ponzi mechanics despite SEC claims of recklessness from consistent 40% annual family returns and instructions to Madoff for loss-free trades.^[17] Chais's representatives maintained until his 2010 death that he conducted no due diligence lapses intentionally and viewed Madoff's operations as legitimate, attributing reliance to Madoff's reputation among sophisticated investors rather than willful blindness.^[1] Critics of the clawback suits, including some legal observers, argued that netting positive withdrawals alone proved neither fraud knowledge nor unjust enrichment, as Madoff himself later alleged early investors like Chais shared culpability—a claim discounted by trustees given Madoff's incentive to deflect blame.^[51] The settlements' non-admission terms supported views that allegations stemmed from regulatory overreach amid the scandal's scale, prioritizing victim restitution over proving intent untestable post-mortem.^[8]

Personal Life and Death

Marriage and Family Dynamics

Stanley Chais was married to Pamela Chais, a playwright and screenwriter, with whom he collaborated on philanthropic initiatives, including the management of a charitable organization that supported Jewish and educational causes.^[1] The couple resided in Beverly Hills, California, prior to relocating to Manhattan in 2009 for Stanley's medical treatment related to a rare blood disease.^[1] Their joint efforts in philanthropy reflected a shared commitment to family-oriented giving, though the organization's collapse following the exposure of Bernard Madoff's Ponzi scheme in December 2008 severely impacted their assets.^[1] Chais and Pamela had three children: sons Mark, who resided in Israel, and William, based in Los Angeles, and daughter Emily Chasalow.^[2] The family established multiple trusts for the children's benefit, including the 1994 Trust for the Children of Stanley and Pamela Chais and the 1996 Trust for the Children of Stanley and Pamela Chais, administered by family associates to manage intergenerational wealth.^[20] These arrangements underscored a structured approach to family financial planning, intertwined with Chais's investment activities, though subsequent litigation scrutinized transfers involving family entities.^[15] Family dynamics were marked by close involvement in Chais's professional and charitable spheres, with immediate relatives positioned as key beneficiaries and defenders amid post-Madoff legal challenges; spokespeople for the family emphasized their status as victims of the fraud rather than participants.^[1] Pamela Chais actively represented the family in public statements following Stanley's death on September 23, 2010, declining to disclose specific causes beyond natural ones confirmed by medical authorities.^[49]

Final Years and Cause of Death

In his final years, Stanley Chais relocated from Beverly Hills, California, to Manhattan, New York, primarily to receive specialized medical treatment for a rare blood disease.^[1]^[52] This condition, identified as myelodysplastic syndrome—a bone marrow disorder—resulted in profound anemia and significant fatigue, as detailed in a 2009 declaration by Chais himself.^[4]^[53] Despite ongoing care, his health deteriorated progressively, leading to his death on September 26, 2010, at the age of 84.^[1]^[54] The New York City chief medical examiner's office officially attributed Chais's death to natural causes, consistent with complications from his long-standing blood disorder.^[4]^[55] No autopsy details beyond this classification were publicly released, and his wife confirmed he was under active treatment at the time.^[56] Chais's move to New York underscored the severity of his illness, as he sought advanced interventions unavailable locally in California.^[57]

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[27]
Suit in Madoff Case Says a Manager Was Favored
May 1, 2009 · Madoff case has accused Stanley Chais, an investment manager and prominent Los Angeles philanthropist, of routinely getting “implausibly high” ...<|separator|>
[28]
[PDF] Complaint - Stanley Chais - CA.gov
Sep 17, 2009 · This action is brought against Stanley Chais, an unregistered investment adviser, who over the past 40 years has recklessly and clandestinely ...
[29]
The Bernard Madoff Tapes - New York Magazine
Feb 25, 2011 · In some ways, Madoff has not tried to evade blame. He has made a full confession, telling me again and again that nothing justifies what he did.
[30]
Bernard L. Madoff Investment Securities LLC - Case Details - SIPC
Madoff Investment Securities LLC commenced on Thursday, December 11, 2008, in the United States District Court for the Southern District of New York. This date, ...
[31]
Financial advisor Stanley Chais sued in Bernie Madoff scheme
Sep 23, 2009 · Instead, the lawsuit alleged, Chais turned all of the funds over to Madoff, who pleaded guilty in March to a $65-billion Ponzi scheme that was ...Missing: garment | Show results with:garment
[32]
Madoff SIPA Trustee, California Attorney General, and Private ... - SIPC
Oct 28, 2016 · The agreement was made with the Stanley Chais estate, Chais's widow, and a number of Chais family members, investment funds, trusts ...Missing: founded | Show results with:founded
[33]
Madoff: Judge lets $1 billion clawback suit stand | Law.com
... Stanley Chais, one of Bernard Madoff's largest investors. ... business and social level that spanned over 30 years. ... After Meteoric Rise, Apparel Startup Vuori ...
[34]
recoveries and settlement agreements - Madoff trustee
The payment amount reflects 75 percent of the $62 million withdrawn by the defendants within the six-year period prior to the BLMIS liquidation filing date, and ...
[35]
California Wins $15 Million From Madoff-Tied Settlement
Oct 28, 2016 · “For over 30 years, Stanley Chais unscrupulously defrauded Californians, many of them elderly, by taking their life savings, charging steep fees ...
[36]
Bernie Madoff friend's estate agrees to pay $277 million to end lawsuit
Oct 28, 2016 · The estate of one of Bernard Madoff's oldest friends agreed to pay the con man's victims $277 million to settle claims that the Beverly ...
[37]
[PDF] Baker & Hostetler LLP 45 Rockefeller Plaza New ... - Madoff Trustee
Oct 28, 2016 · The Stanley Chais Defendants and the Chais Related Defendants are entering into this Settlement. Agreement to fully resolve these matters and ...
[38]
State reaches $15-million settlement with estate of Beverly Hills ...
Oct 28, 2016 · Californians who trusted their money to Beverly Hills investment manager Stanley Chais, only to have him funnel their money to Ponzi schemer ...
[39]
Stanley Chais Targeted in Madoff Suit - Jewish Journal
May 6, 2009 · Stanley Chais, the longtime Beverly Hills money manager who only five months ago was a major donor to Jewish causes, has seen his life ...Missing: biography | Show results with:biography
[40]
Deaths <br>CHAIS, STANLEY - Paid Death Notice - NYTimes.com
Sep 28, 2010 · ... Jewish studies in the former Soviet Union; and he furnished pioneering support for our Jewish community development initiatives in Germany.Missing: organizations | Show results with:organizations
[41]
Accused Madoff Middleman Stanley Chais Dies at 84 - Jewish World
Sep 27, 2010 · He was 84. Chais died on Sunday in Manhattan of natural causes, according to Grace Brugess, a spokeswoman for the New York City chief medical ...
[42]
Friends of the Program - The Technion-Decart Excellence Program
In addition to Stanley Chais' desire to support the Technion and Israel, he wanted to ensure that his contribution would be directed to the young generation ...Missing: donations | Show results with:donations
[43]
About
Mr. Stanley Chais and his family have donated one million dollars for the establishment of the Chais Research Center for the Integration of Technology in ...
[44]
The Day the Money Died - Haaretz Com
Dec 26, 2008 · The Chais Foundation, founded by Stanley and Pamela Chais in 1985, gave most of its annual $12 million in donations to educational causes in ...
[45]
A Watershed Moment - eJewishPhilanthropy
Dec 18, 2008 · The Chais Family Foundation has helped sponsor the first Limmud festivals in Moscow, the Baltic States, and Southern California. Based on this ...
[46]
[PDF] Research of the Chais Center - The Open University of Israel
Stanley Chais supports Israel, not only in higher education, but also in establishing Israeli start-up companies which include new immigrant scientists. The ...
[47]
Madoff Associate Stanley Chais Dies - eJewishPhilanthropy
Sep 27, 2010 · Stanley Chais, a Beverly Hills, California investment advisor who operated “feeder funds” which collected money for the Madoff investment scandal, died ...Missing: cause | Show results with:cause
[48]
Suit Seeking $1 Bil. From Madoff Investor's Family Can Proceed ...
... Chais." Lifland rejected the Chais defendants' arguments. "The Trustee has sufficiently pled that they were not 'innocent' investors; rather … it is ...
[49]
Stanley Chais; linked to Madoff - Times Union
Sep 28, 2010 · NEW YORK -- Stanley Chais, a once-esteemed investment manager and philanthropist whose reputation was marred by accusations he steered ...Missing: biography financier
[50]
https://www.wsj.com/articles/money-managers-estate-to-return-277-million-to-madoff-investors-1477671278
[51]
Madoff Seeks to Spread Blame for Fraud - CNBC
Apr 8, 2011 · Both banks denied any wrongdoing or knowledge of Madoff's fraud. Madoff claimed that four of his earliest investors - Jeffry Picower, Stanley ...
[52]
Obituary: Stanley Chais, 84, Philanthropist and Madoff Associate
Sep 27, 2010 · Stanley Chais, a benefactor of Jewish causes who became a major figure in the Bernard Madoff scandal, died Sunday in New York at age 84, ...
[53]
Alleged Madoff middleman, Stanley Chais, dead at 84 – Daily News
Aug 28, 2017 · Stanley Chais, an alleged middleman in Bernie Madoff's Ponzi schemes, who was the target of multiple lawsuits in Los Angeles Superior Court, ...Missing: biography upbringing
[54]
Stanley Chais, Who Funneled Money to Madoff, Dies - The New ...
Mr. Chais died on Sunday in Manhattan of natural causes, according to Grace Brugess, a spokeswoman for the New York City chief medical examiner. The U.S. ...
[55]
https://www.reuters.com/article/madoff-chais/update-2-accused-madoff-middleman-stanley-chais-dies-idUSN2725688920100927
[56]
Money Manager Stanley Chais, Linked to Bernard Madoff, Dies at 84
Sep 27, 2010 · The manager of three investment funds that channeled money to the notorious Ponzi schemer, Chais told investors -- including director Stephen ...
[57]
https://www.wsj.com/articles/BL-LB-33959