5/3/09

Is Stanley Chais Jewish?

Yes, Stanley Chais is a Jew. He's well-known in Jewish circles as a philanthropist who has supported many Jewish and Israeli causes for decades.

The Jewish Journal wrote about him on 2/11/2009,
In Israel, Chais sits on the boards of the Technion, the Weizmann Institute and the Hebrew University of Jerusalem. He has supported numerous other educational projects and has helped establish start-up companies, especially those that give immigrant scientists an opportunity to realize their potential. His son Mark, who lives in Israel and heads his own venture-capital company, joined Chais in several start-up ventures.

Now ailing, the senior Chais was unable to attend the tribute organized for him at the Jerusalem Music Academy on HU’s Givat Ram campus. But his son was there to hear the outpouring of appreciation, admiration and concern for a man who has done so much not only for higher education and start-up companies, but also for hospitals, museums, cultural institutions and individuals who have been awarded scholarships that he established.
Unfortunately for these charities, as USA Today has reported, Chais and his family are now the target of a gigantic clawback lawsuit filed by the Madoff trustee:
The trustee trying to recover Bernard Madoff's assets filed a lawsuit Friday seeking more than $1 billion from prominent California money manager and philanthropist Stanley Chais and his family, arguing they "knew or should have known" Madoff was running a Ponzi scheme.

Filed in U.S. Bankruptcy Court in New York, the complaint charged that Chais and his relatives were prime beneficiaries of Madoff's scam for more than 30 years and should be required to return the money for eventual distribution to thousands of victimized investors.

Trading accounts for investment funds managed by Chais received "unrealistically high and consistent" annual returns of 20% to 24%, with just three months of losses in 12 years, the complaint charged.

At the same time, Chais' own family and corporate accounts reported annual returns that sometimes topped 300% and had a combined average annual return of nearly 40%, the complaint charged.

"Either an utter lack of volatility over twelve years or implausibly high rates of return over the same period suggests misconduct," the complaint charged. "That the same investment manager purported to accomplish both at the same time should have removed all doubt."

The more than $1 billion the lawsuit seeks from Chais and numerous family trusts represents "what was, in fact, other investors' money," according to a statement issued Friday night on behalf of Irving Picard, the trustee searching accounts around the globe for Madoff-related assets...
Local note: Our State Senator in Teaneck, Loretta Weinberg, lost her life's savings because her money manager Chais invested her money in the Madoff fund without her knowledge.

1 comment:

mark peel said...

Can a charity accept a donation from a thief? Stanley Chais made huge donations to many Jewish charities, as a result he has his name etched in walls all over Israel and the U.S. Those funds were stolen from Jews, many of whom, as a result, have been left destitute. What those charities do now will say a great deal about the purpose of those charities. This might be a good time to reread the writings of Maimonides.