LA Times: A Beverly Hills investor's ties to Madoff sink many

[marmar]

A Beverly Hills investor's ties to Madoff sink many
Many in Los Angeles' Jewish community had invested with Stanley Chais, who had seemed like a low-key safe bet. But he had bet all their money in the alleged Ponzi scheme run by Bernard Madoff.

By Kim Christensen
December 21, 2008


Sarah Mandell and her husband, Bob Chew, wanted to cut their expenses and lead a "simpler life," so in 2004 they sold their house in Los Angeles and set out for the mountains of Colorado.

To secure their future, they took the money from the house and invested it with Stanley Chais of Beverly Hills. It seemed like a safe bet: Chais was a wealthy investment advisor and trusted family friend who had produced strong returns for Mandell's relatives for two decades.

"You would think in 20 years, if there was something wrong with this, it would have been uncovered," said Mandell, a personal chef.

Eventually it was, but too late for Mandell, 45, and Chew, 55, a marketing consultant. The couple learned days ago that their $1.2-million investment account had been obliterated in an alleged $50-billion fraud run by New York financier Bernard L. Madoff with the help -- knowingly or not -- of Chais and others who funneled investors' money to him.

The fallout has been enormous, hitting hardest in Jewish communities here and abroad, racking charities and families that had invested directly with Bernard L. Madoff Investment Securities or through "feeder funds" like Chais'. Many who lost money were in the entertainment industry, Hollywood heavyweights and nonmarquee names alike. .......(more)

The complete piece is at: http://www.latimes.com/news/nationworld/world/la-fi-madoff-chais21-2008dec21,0,4731352.story

[Dennis Donovan]

1. If I were Madoff, I'd feel safer inside jail than outside...

[Lasher]

2. Boy, you got that right.

And check out this couple: Not fat cats at all, just people who set a modest amount of money aside, hoping to retire early. $1.2 million would actually generate a fairly spartan retirement income depending where you live. Now it looks like they'll have to keep working until they drop dead. A scary prospect indeed.

[NJCher]

3. maybe not fat cats themselves, but...

Here's what the article says about their family money:

In all, Chew and Mandell, and her extended family, have lost about $30 million, they say, including $300,000 that her 84-year-old mother relied on to pay for her assisted-living arrangements. Now, she must move to a less expensive, and less desirable, nursing home, Mandell said.



Cher

[malaise]

4. He won't be safe anywhere

Bet on that.