Stanley Chais, 82, is a private investor who has been active in a wide range of Israeli and American Jewish charitable activities over the past 30 years. Apparently, over the past thirty years, Mr. Chais has combined his business activities with a wide range of philanthropic endeavors for the benefit of Jewish communities in the United States, the former Soviet Union (FSU) and Israel. He believes that “all Jews are responsible for each other", and therefore, he, who can afford it, should support areas that promote learning and culture.
Stanley Chais also is the head of a limited partnership or investment management firm, Brighton Co. of Beverly Hills, California, that apparently served as a "feeder fund' to Bernie Madoff's investment scheme. It had invested and hence lost about $250 million with Bernie Madoff. From The Los Angeles Times, one might learn that apparently Mr. Chais previously served on more than one charitable boards with Bernie Madoff. Stanley Chais and his firm also have been sued by one Michael Chaleff of Arlington, VA, a former Justice Department lawyer. Mr. Chaleff's lawyer, a certain Reed Kathrien, with the Oakland firm of Hagens Berman Sobol Shapiro, indicates that many of Brighton's investors were in the investment business and lost small fortunes "because they'd been in [the investment funds] for 10 or 20 or 30 years."
According to the suit, Mr. Chaleff was part of a 50-member investment group called CMG that lost $75 to $80 million it gave to Brighton Co. Mr. Chais apparently managed about 10 such groups of investors and substantially all of those collective funds were invested in Bernie Madoff's fraudulent scheme.
The class-action suit filed on Mr. Chaleff's behalf alleges that the Brighton firm was "aware of, or recklessly disregarded, the misuse and mismanagement of investment funds." Subsequent to Bernie Madoff's arrest, Stanley Chais indicated that he had not only personally invested with Madoff, but also had "facilitated" others who desired to do likewise. He also claimed that he and his family also were "swindled" and had lost "a huge amount of money."
A bit ominously for Mr. Chais, both the Securities and Exchange Commission and the California Department of Corporations reported that they could not find any records of Chais registering as an investment advisor or broker. Also of concern, Mr. Chais apparently took a piece of the partnership's profits as management fees, usually according to one investor about 3.8%, from a partnership that was a "kind of private, hush-hush fund" geared toward "private arbitrage accounts." That same investor indicated that he and his wife thought the partnership funds were invested in currencies, stocks and other securities. More ominously, Bernie Madoff's name and his investment firm never were mentioned.