Stanley Chais, one of the first sued for investment scam under the Madoff case

First lawsuits were filed by the trustee for the liquidation of Bernard L. Madoff investment Securities LLC against the entities found to be accomplices of the fraudulent scheme. Irving H. Picard, a government appointed trustee, announced on Friday it launched a lawsuit against Stanley Chais and related entities, accusing them of getting about $1 billion via Madoff that actually belonged to other investors.

"This is the first of several actions that will be brought against entities that either acted as insiders with Bernard Madoff and BLMIS or that benefited from Madoff's scheme to the severe detriment of other customers of BLMIS," said David Sheehan, counsel for the Trustee. 

The case was put together by the trustee and the SEC. Picard alleged that Chais, 82, operated a feeder fund for Madoff's investors. Chais already is the subject of several lawsuits from clients related to investments with Madoff.