Stanley Chais, a Beverly Hills money manager for Hollywood's elite who was accused of recklessly plowing nearly $1 billion in client funds to Bernard Madoff, has died at age 84.  [C-I Note: He died a very rich man.]

The SEC accused Chais in a June 2009 civil lawsuit of funneling client money to Madoff, a close friend since the 1960s, while ignoring red flags that Madoff's seemingly steady returns were bogus.  He Chais claimed to be a Madoff victim like everyone else, supposedly losing nearly all his money in the fraud.  If that's true, he went down with his clients, like director Steven Spielberg;  Chais's 3 investment funds reportedly lost $917 million. 

    What Makes Us Say Mr. Chais Was Very Rich?   For starters, regulators say he pocketed $270 million in management fees, and he and his family allegedly withdrew $546 million more than they invested with Bernie Madoff.  Federal prosecutors opened a criminal probe into Chais and the funds, but had not filed charges.

    Second to Die (Policy?).   Chais is the second key figure associated with Madoff to die since the scheme was uncovered in December 2008.  Palm Beach billionaire Jeffry Picower drowned last October after suffering a heart attack, police said. The trustee handling the liquidation of Madoff's firm has said Picower was complicit in Madoff's scheme, and sued him to recover $7.2 billion. Picower's lawyers have said he was a Madoff victim. 

The SEC case is SEC v. Chais, U.S. District Court, Southern District of New York, No. 09-05681.  [Reuters, 9/27]  ..