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Madoff Feeder Fund Manager Stanley Chais Under Crimal Investigation

Money manager Stanley Chais and "entities" associated with him are apparently under criminal investigation stemming from the Bernard Madoff affair. Toomre Capital Markets LLC ("TCM") previously wrote about Mr. Chais in the post Stanley Chais, A Fund Feeder to Bernie Madoff.

Late on Friday December 11th 2009 various news services are reporting that prosecutors from the Southern District of New York made a formal request to intervene in a civil lawsuit filed by the U.S. Securities and Exchange Commission. According to Bloomberg News, “The government’s criminal investigation seeks to determine whether Chais and others have violated various federal criminal statutes,” including conspiracy, mail fraud, wire fraud and money laundering, Assistant U.S. Attorney William Stellmach wrote in a legal brief. Prosecutors think they will decide whether to charge Chais or businesses related to him by mid-June, Stellmach wrote.