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In one lawsuit, the Securities and Exchange Commission filed civil fraud charges against Stanley Chais, a prominent California money manager and one of Mr. Madoff’s earliest investors, with accounts dating to 1970.
The lawsuit accused Mr. Chais of deceiving his clients and ignoring obvious signs of fraud.
Some of those signals, regulators say, included Mr. Madoff’s ability to comply with a request from Mr. Chais that none of the Chais accounts should ever report a single losing trade. The second civil fraud case, also filed by the S.E.C., contended that three senior executives at the Cohmad Securities Corporation, a small brokerage firm co-founded by Mr. Madoff, knowingly helped finance the Ponzi scheme and conceal it from regulators for years.
The third suit, filed in federal bankruptcy court by the trustee seeking assets for Madoff victims, also named Cohmad and its three senior executives, along with more than a dozen of its current or former employees. It seeks to recover millions of dollars in fees and profits the defendants received from Mr. Madoff over the years.
Cohmad, which rented space in Mr. Madoff’s Manhattan offices, was little more than a stealth marketing arm that allowed Mr. Madoff to maintain his aura of exclusivity, the S.E.C. contended.
Salt Lake City Lawyers , Stockton Lawyers
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S.E.C. Report Details Lapses i
