May 18, 2009 | 1:33 pm
Posted by Brad A. Greenberg
Stanley Chais, Jeffrey Picower and Carl Shapiro each lost tens of millions of dollars when Bernard Madoff’s monstrous Ponzi scheme fell apart. Their charitable foundations were hammered, and this month Chais was sued by the court-appointed trustee overseeing the liquidation of Madoff’s assets, who said Chais was the first number on Madoff’s speed dial and had “intimate knowledge” of the fraud.
Chais fired back and denied being in on the scam. But now he and seven other investors are being investigated for possible criminal violations.
The paper named three investors under investigation by the U.S. Attorney’s Office, including Jeffry Picower and Stanley Chais, two philanthropists who are the target of lawsuits brought by the trustee liquidating the Madoff firm.
Carl Shapiro, a women’s clothing entrepreneur and close friend of Madoff, is also under criminal investigation, the article said.
Investigators have gathered evidence of Picower and Chais telling Madoff how much in returns they wanted and that their accounts would reflect the amounts, the paper said. It said investigators were also reviewing evidence suggesting Shapiro knew his returns were fraudulent.
The paper said prosecutors have not charged any Madoff investors with criminal wrongdoing.
The Journal quotes a lawyer for Chais, 82, and a representative of Shapiro, 96, as saying the men had no knowledge of the fraud. A lawyer for Picower, 67, told the paper his client was not complicit in the scheme and had suffered billions in losses.
We welcome your feedback.
Your information will not be shared or sold without your consent. Get all the details.
JewishJournal.com has rules for its commenting community.Get all the details.
JewishJournal.com reserves the right to use your comment in our weekly print publication.
12.5.13 at 7:11 am | In some of the most astounding news I've heard. . .
12.3.13 at 7:11 am | The Supreme Court granted certiorari in ...
11.25.13 at 8:55 am | Judge Crabb ruled that the clergy housing. . .
11.23.13 at 7:46 pm | A time-lapse starting with Hinduism in 5,000 BC. . .
11.16.13 at 10:41 am | His kebab cafe on hard times, Zablon Simintov. . .
11.4.13 at 8:04 pm | The all-time leader in games played among ...
11.23.13 at 7:46 pm | A time-lapse starting with Hinduism in 5,000 BC. . . (214)
12.3.13 at 7:11 am | The Supreme Court granted certiorari in ... (142)
12.5.13 at 7:11 am | In some of the most astounding news I've heard. . . (120)